Western Gateway partners with Lloyds Banking Group to drive investment

On Wednesday, 27 November,  the Western Gateway Partnership partnered with Lloyds Banking Group to co-host an event to drive economic growth and investment in the South West. This gathering brought together investors, business leaders and the public sector to demonstrate how the region can overcome it’s challenges to investment.

The Western Gateway Partnership, bringing together 28 local authorities alongside business and universities, is a key vehicle for driving investment across South Wales and Western England.  Work by the partnership has uncovered £3-9m gap in private sector investment per businesses every year on average when compared to other parts of the UK.

This event built on October’s 2024 Convention for the Western Gateway, presented by SSE Energy Solutions, which launched Our Plan for Sustainable Growth, outlining how the partnership can deliver economic growth for the area through continued collaboration.

The event brought together key investors to give an update on the economic outlook for the area, and how together we can deliver a better future.

Economic Insights from Lloyds Banking Group 

Paul Kharbanda from Lloyds Banking Group’s Financial Markets division, provided a comprehensive economic update, focusing on the macroeconomic outlook as we approach 2025. He covered key trends in growth, employment, and interest rate expectations, offering attendees a clear picture of the economic landscape. 

Paul highlighted several critical points: 

• Positive Market Reaction to the UK Government Budget: Markets are broadly pleased with the recent UK Government Budget, pointing to fiscal loosening with moderate impacts. 

• Gap Between Fiscal Reality and Business Confidence: Despite the favourable market, a gap between the prospects available in the SW and the confidence levels of businesses here. While the budget provides a solid framework for growth, businesses remain cautious, reflecting concerns about economic stability and future uncertainties. 

Gary Cook, Lloyds Bank Group Head of Public Policy spoke of the impact of US policy on the economy and immigration and their impact on inflation. He provided insightful comments on China and Taiwan and US defence spending there as well as a view of the recent UK Government Budget with the largest tax expansion in a generation. 

Western Gateway’s Vision for Sustainable Growth 

Our Deputy Director, Steph Jary, took the stage next to share the Western Gateway’s Plan for Sustainable Growth and how we are uniquely positioned to answer the challenges that the area now faces.  This included the following priorities for the area in order to achieve sustainable economic growth:

• Increasing Investment: We will improve investment into and around the area ensuring we close the investment gap, fuelling innovation and driving productivity in the area.

• Enhancing Innovation: We will connect clusters and sectors enabling innovation and opportunity for the area.

• Improving Connections: We will connect the area physically and digitally enhancing opportunities, and peoples’ access to them, for fairer growth and productivity. 
• Boosting Recognition: We will gain greater recognition for the area, its businesses & organisations and the Western Gateway Partnership, thereby attracting greater investment and business/opportunities into the area to grow our global footprint.

Steph also provided an analysis of the recent Government Budget, highlighting its alignment with the Western Gateway’s priorities. Including Innovation in Tech; increased funding for technological innovation, particularly in sectors like aerospace and compound semiconductors which our geography excels in. Green Energy & Sustainability; support for green energy projects, aligning with the region’s existing strengths in low carbon energy. Infrastructure & Connectivity; investments in infrastructure to improve regional connectivity and support economic growth helping the area to overcome key historic challenges with ageing infrastructure. 

Call to Action 

Despite the huge potential of the area, progress towards it’s ambitions are now in peril. In the face of a UK Government consultation on ending funding for Pan-Regional Partnerships, like the Western Gatewa, by March 2025, local leaders are calling on businesses and local authorities to respond to the consultation.

We remain committed to working with the Government to ensure a future for our cross-border economy but without continued Government support, any progress is likely to be lost very quickly.

Please support the Western Gateway by taking part in the consultation here. The closing date is 16th December, 12:00pm.

If you would like any advice on answering the consultation we have communications packs available and support from the Western Gateway team. Please email secretariat@western-gateway.co.uk to request.