1. ITV Report

Circuit of Wales: Why the Welsh Government didn't back it

Credit: Artists Impression

The Welsh Government is publishing independent advice that it says caused it to walk away from financially backing the Circuit of Wales project.

The company behind it wanted the Welsh Government to provide a £210 million taxpayer-funded guarantee.

The report states that:

  • Developers 'overstated' the number of likely jobs that would be created in both construction and operational phases
  • The Welsh Government would have taken more than 56% of the project's risk
  • The Welsh Government would have been liable to pay out £383m if the developers had folded after the project had been completed
  • There was 'serious concern' at the amount of profit the developers planned to take from the project - more than £60m

Developers for the Circuit of Wales claimed the £425m project near Ebbw Vale in Blaenau Gwent would create 11,773 jobs, directly and indirectly in the construction phase, but the report says it would have more likely been 4,630.

The financial and construction reports that have been published draw attention to the risks highlighted by our advisors, including the risk to public finances that would have been created by offering the requested guarantee.

The review of the economic impact evidence considers the benefits to Wales that were claimed by the developer.

– Welsh Government statement