Caerphilly County Borough Council has published a draft Local Investment Plan (LIP) for March 2026 setting out how it intends to deploy an indicative £8.84 million allocation from the Welsh Government’s new Local Growth Fund (LGF) to support local economic growth.
What the funding will cover
The LGF replaces the former UK Shared Prosperity Fund and will provide £547 million across Wales over the next three financial years. Caerphilly’s draft plan focuses on three priorities: supporting productive and competitive businesses, increasing skills and employment opportunities, and improving regional infrastructure. The proposals are the product of extensive engagement with local stakeholders and aim to direct resources to areas of greatest need across the county borough.
Targeting local inequalities
The council highlights persistent economic inequalities within the county borough. Despite local strengths such as community cohesion and a growing business base, the draft LIP identifies a clear divide between southern parts of the borough and the Heads of the Valleys area. The plan is designed to target investment where those disparities are most pronounced.
Measures proposed in the draft plan
- Capital grants for small and medium-sized enterprises to support growth and resilience.
- Support for start-up businesses in high-growth sectors and measures to encourage new business formation.
- Investment in green technologies and assistance for firms adapting to decarbonisation requirements.
- Actions to unlock land for development and provision of new business units to address shortages in commercial premises.
- Skills and employment initiatives aimed at qualification, retraining and reducing economic inactivity.
Particular emphasis is placed on helping young people at risk of becoming NEET (Not in Education, Employment or Training) and supporting workers to transition into lower-carbon sectors. The measures are intended to both stimulate immediate economic activity and help prepare the local workforce for emerging industries.
Local impact and next steps
If adopted, the LIP would translate the council’s consultation and strategic priorities into targeted interventions using the LGF allocation for 2026/27. The plan stresses that interventions should both strengthen existing local firms and remove barriers to new investment, such as the shortage of suitable premises. Further detail on specific projects, delivery partners and timelines will be required as plans are finalised.
| Fund | Value |
|---|---|
| Wales-wide Local Growth Fund | £547 million |
| Caerphilly indicative allocation (2026/27) | £8.84 million |
The draft LIP marks the council’s early-stage plan for the new funding stream; residents and businesses will watch closely for the detailed proposals and delivery timetable that follow formal approval.
