Cardiff Labour group backs £1.2bn city region deal

A £1.2bn deal to boost economic growth in south east Wales has been backed by Cardiff council's ruling Labour group.

BBC Wales understands councillors voted 25-6 in favour of the Cardiff city region deal on Monday night.

There were concerns council leader Phil Bale would struggle to persuade his Labour group to back the plan without more detail on individual projects.

Full council will consider the deal on 26 January, where it is expected to pass with Labour and Tory backing.

The Cardiff city region deal would bring together £1.2bn of local, Welsh and UK government funds to boost economic growth over 20 years.

It includes £734m for the South Wales Metro - boosting rail and bus travel in the capital and valleys.

With the involvement of 10 local authorities, the aim is to create 25,000 jobs and attract an extra £4bn in private sector investment.

All the councils need to confirm their funding for the plan by 9 February.

Cardiff's Labour group voted to accept Cardiff providing 23.7% of the local authorities' contribution over 20 years.

The city would pay a total of £2.5m over the first five years.

The annual contribution would later peak at £3.2m before falling again.

Potential projects backed by the Labour group include a 15,000 seat arena, phase two of the Eastern Bay link road, and new park and ride sites as part of the Metro transport system.

If the leadership of the council changes hands at the local elections in May, the new administration would not have to back those particular projects.

Councillors were told a final financial commitment would be made once the projects were agreed.

In December senior local government figures expressed serious concerns about whether Cardiff councillors would back the deal before the local elections.

The other nine authorities are expected to approve their contributions.

Earlier in January the 10 council leaders gave their backing to a report that sets out priorities for the deal.