7. Will the Cabinet Secretary outline what the Welsh Government expects to contribute towards City Deals? OAQ(5)0067(FLG)

The Welsh Government is already committed to contributing £503 million to the £1.2 billion Cardiff capital city deal. I hope that we will rapidly reach the point where a heads of terms agreement can be signed to secure the Swansea city deal and the funding that would support it.

I’m grateful to the Cabinet Secretary and support the city deal, as we don’t believe that devolution should stop at Cardiff Bay. Can I ask, where there’s the prospect of any contribution from the UK Government in any discussions over city deals, whether there is a risk that with the fiscal framework and the otherwise useful funding floor that that might mean that any contribution from the UK Government would be offset by reduced spending by them elsewhere in Wales?

Llywydd, I don’t believe that that is a risk. Discussions on contributions to the city deal happen outside of the fiscal framework and in addition to it. In the Cardiff capital city deal the Welsh Government is contributing £503 million and the UK Government is contributing £500 million. In the discussions that we have over the Swansea city deal, we expect to secure the same tripartite arrangement, in which local authorities make a contribution, the Welsh Government makes a contribution and the UK Government makes a separate contribution, and that is outwith the arrangements that are covered in the fiscal framework.

I thank the Cabinet Secretary.