A pre-election agreement to base Welsh Government staff in Swansea’s new city centre public sector hub is hanging in the balance — after the incoming Plaid Cymru administration said it would review its office estate as a new government, with no decisions yet taken on any specific sites.
Swansea Council confirmed it had been in advanced talks with the previous Labour Welsh Government to secure a formal and physical presence for Welsh Government staff in the new five-storey hub being built at the former St David’s Shopping Centre site — and that letters of intent had been exchanged before the Senedd election.
A council spokesperson said: “We were engaging with the Welsh Government prior to the Senedd elections to look at options for them to have a formal and physical presence in Swansea city centre, which supports our regeneration activities and their investment in town and city centres. Now that a new government is in place we will open up this dialogue again with the hope of concluding discussions as soon as we are able to.”
(Image: Swansea Council)
The Welsh Government did not confirm the pre-election agreement, but said no decisions had been taken on future accommodation arrangements, including whether any specific sites would be used or how much space might be occupied.
A Welsh Government spokesperson said: “As a new administration, we will take the opportunity to review our office estate as part of good financial and asset management, and we are committed to doing so on a regular basis. As part of that work, a range of potential options will be explored with public sector partners, including different ways of using existing buildings. Any decision on the Welsh Government estate will be for Ministers.”
The proposed deal was understood to have involved the Welsh Government relocating staff from its existing offices near junction 47 of the M4 at Penllergaer to the new city centre hub, with the council potentially taking on the Penllergaer building as part of the arrangement.
(Image: Google Maps)
That proposal drew pointed criticism from Cllr Chris Holley, the Liberal Democrat leader of the opposition on Swansea Council — and a man with direct experience of the building in question. Cllr Holley led the council between 2004 and 2012, and was at the helm when the Welsh Development Agency was abolished in 2006 and its Penllergaer office was transferred to the Welsh Government.
He said the building had struggled to attract occupants ever since, arguing it had become a liability for the Welsh Government following the WDA’s departure. He said he understood blue light services had already been approached about taking the space and had declined.
“Yes of course [I support Welsh Government jobs in the city centre] — but not at any cost,” Cllr Holley said. “They have lots of offices around Wales, yet we have to swap one for another.”
(Image: Google Maps)
He also questioned the logic of the council taking on premises that a large organisation had been unable to fill. “If it didn’t work for the Welsh Government, how is it going to work for Swansea Council?” he said.
Welsh Government figures show around 400 staff have their location recorded as Penllergaer — but average daily attendance at the building was running at just 10% in March 2025, well below the two-days-a-week expectation for civil servants. Across its 20 sites in Wales, the Welsh Government employs around 5,700 people at a total annual cost of £24.5 million.
The Penllergaer site has its own complicated history. Swansea Council itself once had offices in the area — the former Lliw Valley Borough Council building, which the authority sold in 2016 partly to address a budget deficit. That site was sold to Carmarthenshire developer Enzo Developments, who later received planning permission for 80 homes and a preserved Grade II listed equatorial observatory — though Enzo’s Homes subsequently went into liquidation on a separate development in 2025.
The public sector hub at the heart of the proposed deal is the first building in the new Porth Copr district — the area that will eventually replace the former St David’s Shopping Centre car park, knitting together Copr Bay, St Mary’s Square and the Quadrant. Work on the site is already under way, with the hub designed to anchor public sector workers in the city centre and generate daily footfall for traders.
The council’s own commitment to the hub is separately driven by its planned departure from the seafront Civic Centre — which received a £20 million UK Government funding boost in March to support its redevelopment for housing, leisure and commercial uses.
Meanwhile, the Penllergaer business park has its own new chapter under way nearby — with a major logistics depot, understood to be an Amazon last-mile delivery hub, approved on an adjacent site in March, already raising questions about the capacity of junction 47 to absorb the additional traffic.
Council leader Rob Stewart was contacted for comment.
