A final public funding bid rejection from the Welsh government has hammered the last nail into the Circuit of Wales’ coffin with an automotive business park set to use the land instead.

This morning, a Welsh Government cabinet meeting rejected a request for 50 per cent of the project funding – £210m – to be underwritten by public money after the Welsh Audit office reported huge shortcomings between the number of jobs that will be created and a projection - 100 v 6000.

“This represents the same cost as building, for example, the planned new Specialist and Critical Care Centre in Cwmbran, 10 schools similar to the new Ysgol Bae Baglan in Port Talbot, or the equivalent of 5,000 new affordable homes in communities right across Wales,” said economic secretary Ken Skates.

“Extensive and detailed due diligence by external experts employed by Welsh Government has shown that due to the way the deal is structured, the current proposal would see the Welsh Government exposed to more than 50% of the risk.

“This is because the £210m underwriting element would carry a higher risk than other parts of the financing package. As a result, following discussions with ONS and HM Treasury during the due diligence process, it is assessed that there is a very significant risk that the full £373million debt of the entire Circuit of Wales project would be classified against Welsh Government capital spending.

“Over the next three years, this would have the same impact on Welsh Government budgets as if we had already spent the money - and would place a significant limit on our ability to deliver current and future projects to improve Welsh infrastructure, housing, hospitals or schools.

“Recognising the economic potential this type of development would bring, and the fact that the people of Blaenau Gwent have waited long enough for the promised jobs, I’m pleased to be able to inform Members that the Cabinet this morning agreed to move ahead with a new and significant project. This will build on the lessons of the due diligence process, and use the approach assessed as having the greatest benefit in terms of local economic opportunities.

“The Welsh Government is therefore today committing to building a new automotive technology business park in Ebbw Vale, with funding of £100million over 10 years, with the potential to support 1,500 new FTE jobs. We will begin this work with the delivery of 40,000 sq ft of manufacturing space on land currently in public ownership.”