Cardiff Capital Region backed by at least £30m from UK Government unlocking local innovation and economic growth

Local partnerships will direct funding to range of priorities, from life sciences to AI or capitalising on the region’s existing strengths in automotive technology to support a greener future.

Cardiff Capital Region (CCR) 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).

From April 2026, partnerships between CCR, 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.

The funding will build on the existing strengths of Cardiff, and the region more widely, from its role in developing electric vehicle components that will help build a greener world to data science capabilities, which can improve lives from better public services.

The funding forms part of the Local Innovation Partnerships Fund (LIPF) of up to £500m, which was announced ahead of last month’s Spending Review to empower local leaders. The fund will help target innovation investment and make the most of our communities’ expertise to unleash discoveries that bring prosperity, resilience and economic wellbeing to the region, Wales and the UK.

The funding was announced as part of a record £86bn R&D settlement until 2030 and will help the Government to deliver its 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.”

Mary Ann Brocklesby, Chair of Cardiff Capital Region commented:

“This local innovation funding is a significant step in our ongoing commitment to creating a region that is focused on innovation, connectivity and prosperity for all. Through science and technology, we are able to continue expanding our horizons, our ambitions and play our part in creating a new chapter of South East Wales’ story.”

Kellie Beirne, Chief Executive for Cardiff Capital Region added:

“Innovation is the lifeblood of our region, and with it comes the ability to stand on the world-stage as a competitive, connected region. This announcement is another investment stepping stone to driving innovation-led growth that will bring jobs and prosperity for the residents of Cardiff Capital Region and beyond. The Local Innovation Partnerships Fund will mean that we can continue to break new ground, explore new technologies and see our region’s economic wellbeing prosper. I’m looking forward to seeing what can be made possible because of this funding.”

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.