This blog explores current funding opportunities and highlights Lichfields’ involvement in many of the key projects being advanced across Wales as a result. It demonstrates how we can support developers and businesses to deliver impactful and meaningful outcomes.
Town centres are central to Welsh life, with just over 2.5 million people in Wales living in towns or cities, yet one in every seven shops on Welsh high streets are vacant. Clearly, this not an issue unique to Wales; town centres across the UK are rapidly changing in response to a major structural shifts in shopping and working patterns, with an ensuing decline in demand for physical retail floor space.
However, it is important to remember that historically town centres have served purposes beyond simply retail and have continuously evolved to meet the changing needs of visitors. Whilst the earliest centres were located for defence or at key locations along routes, towns and town centres quickly evolved as places of trade, and places to live, work and play. It is through this prism that that future role of town centres should be planned. As retail uses contract, town centres are increasingly becoming places to gather, socialise and experience.
In recognition of this, the Welsh Government has introduced a range of measures to reinvigorate town centres. This includes the adoption of a Town Centres First policy, which is reflected in Future Wales: The National Plan 2040, the national development plan for Wales.
Context: Town Centres First for a Mix of Uses
The Town Centres First policy highlights the need to rethink the future of town centres as they transition away from traditional retail roles. It actively supports the growth and regeneration of towns and cities, promoting a vibrant mix of uses, including commercial, retail, education, healthcare, leisure and public service facilities.
It also encourages the public sector to take an increased role to support the growth and regeneration of town and city centres. A key facilitator
of this is the Transforming Towns Programme which provides funding to local authorities and developers to revitalise town and city centres across Wales. Similar initiatives are also run by the UK Government, which provide long term investment to communities to restore local pride and unlock new opportunities. Our Revitalise Tool Kit has been successfully applied across town centres throughout the UK, helping strengthen the case for investment and in turn delivering meaningful change.
The Transforming Towns Programme
The Transforming Towns Programme was launched by the Welsh Government in March 2020, to support both the development and delivery of regeneration projects, alongside smaller scale place-making initiatives. Since its launch, the programme has awarded more than £484 million in grant and loan funding to support regeneration. In February 2026, it was announced that a further £30.9 million would be provided to local authorities to assist with these efforts.
This fund is available to local authorities who can work with partner organisations to develop projects.
Lichfields has been supporting Thackeray Estates in the repurposing and redevelopment of Howells, a Grade II* former department store. The £100m regeneration project at the heart of the City Centre is seeking to transform the vacant former department store into a vibrant multi-use destination. The project has benefitted from the Transforming Towns Programme - the recently erected hoarding was part funded by the Programme.
Credit: Thackeray Estates
Lichfields Insight,
Out with the old, in with the new,
provides further guidance in relation to successfully repurposing town centre buildings. It is intended to assist others in successfully promoting the repurposing of built assets.
Transforming Towns Place-Making Funding
The transforming towns and placemaking funding supports the delivery of smaller schemes that require no more than £300,000 grant funding and is designed to be accessible to a number of delivery partners across the private, public and third sectors.
Transforming Towns Strategic Funding
The transforming towns strategic funding is intended to support the delivery of a specific projects led by a local authority where more than £250,000 grant or loan funding is required.
Transforming Town Loan Fund
Between 2022 and 2025, £25 million was made available across Wales to support projects which reduce the number vacant sites within town centres. The fund is an interest free loan, administered by the local authority who cannot use it for their own projects.
The interest free loan must be paid back to the local authority, usually within 5 years. Once the loan is repaid, the local authority can use it again to support new projects. The fund is required to be reinvested 2 to 3 times over 15 years.
Those who are eligible for the loan include:
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social housing associations
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property developers
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private landlords; and,
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businesses
Pride in Place Programme
The Pride in Place Programme was launched by the UK Government in September 2025. As part of the programme, the UK Government has committed to investing £5.8 billion over 10 years in order to transform communities across the UK; each neighbourhood can receive up to £20 million over 10 years to improve local communities. Nine Welsh neighbourhoods have been named as recipients of this funding.
UK and Welsh Government funding
For large infrastructure and regeneration projects, direct capital funding from the UK and Welsh Government is also available.
Lichfields has been supporting Urban Splash and Swansea Council with their development proposals to refurbish the Swansea Civic Centre building. The refurbishment and repurposing of the former Council Civic Centre forms the centre piece of the wider masterplan for Swansea beachfront. A crucial element of the proposal is the development of ‘Ffordd ir Môr’, an active travel route, which will complete the link from the City Centre to the beach and unlock the vision of a ‘City on the Beach’.
Urban Splash, Lichfields and Swansea City Council have been working collaboratively to ensure the project comes forward as part of the wider ‘City on the Beach’ initiative. The project has attracted financial backing, including £20 million of direct UK Government capital funding.
Credit: Pexels Turang Photography
Conclusion
Plaid Cymru has emerged as the largest party following the Senedd election on 7 May 2026. Supporting small businesses and regenerating high streets is one of Plaid Cymru’s key manifesto objectives. It is anticipated that Town Centres will therefore remain a key priority for the incoming Welsh Government.
The Welsh Labour Government actively put ‘Town Centres First’ into practice, through direct funding aimed at unlocking the regeneration of towns and city centres across Wales. Whilst the revitalisation of town centres is a manifesto objective for Plaid Cymru, time will tell whether the existing streams of funding and support will remain.
Lichfields has been at the forefront of these regeneration efforts across Wales, helping to revitalise towns and cities, breathing a new lease of life to centres. The Cardiff Office has assisted several clients bring forward a broad mix of diverse uses on underutilised and vacant premises in town centres through repurposing, redevelopment and reuse. Many of these projects have successfully obtained UK Government and Welsh Government support and funding.
Footnotes
