The Government has reaffirmed its commitment to its £1.2bn city deal with Cardiff in the face of uncertainty created by the Brexit vote.

The agreement, signed last March with the Cardiff Capital Region (CCR), includes £106m of EU funding and is expected to create 25,000 jobs and attract £4bn worth of private sector investment.

The result of the EU referendum brought the deal into question , but the secretary of state for Wales, Alun Cairns MP, has met with the leaders of the CCR and confirmed the deal is still in place.

‘Following the meeting, I have reaffirmed my support and commitment to the project, and work with all the partners to maximise the positive outcomes of a landmark City Deal,’ he said.

‘The City Deal, post Brexit, can continue to provide the springboard for Cardiff to emerge as a leading engine of growth in the UK.’

He described the deal as ‘a genuine partnership’ between the UK Government, Welsh Government and 10 local authorities in South Wales.

Cllr Andrew Morgan, leader of Rhondda Cynon Taff, and chair of the City Deal joint cabinet of the 10 local authorities in the region, said it is ‘unclear’ whether there will be a funding shortfall or not.

He continued: ‘It is imperative that we work with the UK and Welsh Governments to ensure that there is no funding shortfall for such a critical programme of investment in the region.

‘The joint cabinet is reassured by the secretary of state’s support for the City Deal, and we look forward to working together to ensure it is delivered in full, ensuring that it has the significant economic impact on the region which we are all striving so hard to achieve.’