Cardiff Capital Region backed by £30m to unlock innovation and growth
Source: gov.uk (2025-07-31)

Cardiff Capital Region is one of three UK cities and regions supported through the UK Government's £500m local innovation fund.

- Local partnerships will direct funding to range of priorities, from life sciences to AI, or could capitalise on Cardiff Capital Region’s existing strengths such as in automotive technology to support a greener future
- Builds on record £86bn R&D settlement until 2030 and backs local skills to deliver economic growth as part of our Plan for Change
Cardiff Capital Region is among three UK cities and regions receiving at least £30m each from the UK Government to unlock new, locally led innovation that can improve lives across the country, UK Science Minister Lord Vallance has announced today (Tuesday 29 July).

Partnerships between the city region authority, businesses and research organisations will work with UK Research and Innovation (UKRI) to invest the funding into a range of regional and national priorities in science and technology - from life sciences to green energy solutions, AI to engineering, and beyond.

It could even build on the existing strengths of Cardiff, and Wales more widely, from its role in developing electric vehicle components that will help us build a greener world to its data science capabilities which can improve lives from better public services to improving our health.

The funding forms part of the Local Innovation Partnerships Fund (LIPF) of up to £500m, announced ahead of last month’s Spending Review to empower local leaders with skin in the game. It will help target innovation investment and make the most of their communities’ expertise to unleash discoveries that benefit us all and grow the economy as part of our Plan for Change.

The decision to earmark at least £30m to three high-potential areas in Glasgow, Belfast-Derry/Londonderry and Cardiff was reached following collaboration between the UK Government and the governments of Scotland, Northern Ireland and Wales. Seven regions of England were also announced as recipients last month - spanning the North-East to Greater Manchester, Liverpool to London.

The funding was announced as part of a record £86bn R&D settlement until 2030 and will help the Government to deliver our modern Industrial Strategy by backing high growth sectors and bolstering partnerships with industry for long-term economic growth.

UK Science Minister Lord Vallance said:

From driving the development of electric vehicle components that will help deliver a greener planet to cutting-edge data science work, the Cardiff Capital Region playing a leading role in the technologies of the future that can benefit people throughout the UK.

By targeting this funding with local leaders to a range of science and technology sectors we can make the most of the expertise across Cardiff and wider Wales to grow the economy as part of our Plan for Change.

Secretary of State for Wales Jo Stevens said:

This funding from the UK Government is vital to support Wales’s leading science and technology sectors. We are already punching above our weight in areas where there is huge potential for even more growth.

Wales has the talent and expertise to develop high tech solutions to a range of challenges, and this investment will help kickstart innovation, create new well-paid jobs and grow the Welsh economy.

Welsh Government Cabinet Secretary for Economy, Energy and Planning, Rebecca Evans, said:

This investment represents another vote of confidence in the Cardiff capital region and builds on our work supporting its growth, strong university research ecosystem, industry base and innovation clusters over a number of years.

We will continue working closely with the South East Wales Corporate Joint Committee and the UK Government to build on the region’s strengths, attract significant private investment, strengthen regional partnerships and deliver real benefits for people across South East Wales and beyond.

High potential innovation clusters in places that have not been earmarked for funding will also be able to bid into a competition, with UKRI publishing guidance on this competition soon.

The Local Innovation Partnerships Fund represents a significant shift in place-based innovation policy, giving regions greater control over how research and development investment is directed to maximise their innovation potential and drive economic growth.

It builds on the lessons learned from programmes already underway to support high potential innovation clusters in regions across the UK, including the Strength in Places Fund and the Innovation Accelerator pilot scheme and Innovate UK Launchpads.

The Innovation Accelerator pilot scheme alone has leveraged more than

£140 million in new private investment, created hundreds of jobs across the West Midlands, Greater Manchester and Glasgow City Region, and supported a range of new technologies.

It includes those developed by the Greater Manchester advanced diagnostic accelerator, delivering quicker and cheaper detection for liver, heart and lung diseases, whilst Moonbility from the West Midlands is using AI software helping train companies to simulate, in real time, potential disruption to the network so they can alert passengers on delay length, giving advice on replanning journeys.