- As part of the UK Government’s commitment to empowering local communities by spreading power throughout the country, the UK Government has released £52.1 million from the £140 million Local Growth Fund.
- Through Local Growth Funds, funding is being handed straight to local decision-makers. Regional leaders have been empowered to design tailored plans that build infrastructure communities need most, delivering skilled jobs, and boosting living standards.
- Our Local Growth fund will drive economic prosperity for communities that need it most in Edinburgh and South East Scotland, Glasgow and Tay City regions, Ayrshire and Forth Valley.
Workers, apprentices, businesses and communities across Scotland are to benefit as the UK Government releases the first £52.1 million from the Local Growth Fund after green-lighting five regions’ three-year investment plans for the £140 million initiative.
The locally delivered fund targets Scotland’s Regional Partnerships that contain the areas with the lowest Gross Disposable Household Income (GDHI) per capita.
By trusting local knowledge over top-down directives, regional leaders have been empowered to design tailored plans that build physical infrastructure, establish high-growth commercial spaces, and close vital skills gaps.
Scottish Secretary Douglas Alexander said: “The UK Government is committed to empowering local communities by spreading power throughout the country. These funds will support local leaders throughout Scotland to create skilled jobs, help start up businesses and revive our local high streets.
“After months of close working directly with regional partners across Scotland, the UK Government is now releasing £52.1 million directly to regional leaders who know their communities best so delivery can begin.”
https://twitter.com/UKGovScotland/status/2009317430498349180/video/1
Targeted regional investment
This funding targets the Scottish Regional Partnerships that contain the communities that need it most – areas like West Dunbartonshire, North Ayrshire, Dundee, Clackmannanshire and Fife – which have lower GDHI than other parts of Scotland.
The £140 million package is allocated proportionally by population across five Scottish regions.
Year 1 allocations, released now to enable delivery to begin, are as follows:
Glasgow City Region: total 3 year allocation of £60.9 million, with £22,684,596 now released.
The region will deliver business support, skills and employability programmes, and capital investment supporting the creation of high-growth commercial business space, as well as regional infrastructure projects for housing supply, land use, and town centre regeneration.
Edinburgh & South East Scotland: total allocation of £37.8 million, with £14,095,909 now released.
The region will deliver regional skills and employability programmes and capital investment in establishing flagship Housing and Net Zero Accelerator Hubs (HaNZAH) to train workers in green construction and retrofit technology, alongside a new Regional Intelligence Hub to inform regional economic planning, following the model of the Glasgow City Region.
Tay Cities Region: total allocation of £19.5 million, with £7,256,931 now released.
The region will deliver skills and workforce development programmes in priority sectors such as tourism, advanced manufacturing, creative industries, and agriculture and food, alongside capital investment in new industrial infrastructure, including new small-scale innovation spaces, and business grants.
Ayrshire: total allocation of £11.8 million, with £4,400,298 now released.
The region will launch a new Shared Economic Development Service and Regional Intelligence Hub, following the model of the Glasgow City Region, alongside regional recruitment incentives, employability hubs, business start-up support structures, and accelerator grants.
Forth Valley: total allocation of £9.8 million, with £3,665,499 now released.
The region will deliver skills and employability services and specialist support for growth businesses, establish new Regional Partnership and Programme Management functions, and unlock vacant or stalled housing sites through the Forth Valley Housing Enablement Fund.
Funding is being delivered directly to Regional Partnerships to enable strategic decision-making and maximum growth impact. Regional Partnerships are collaborations between local government, the private sector, education and skills providers, enterprise and skills agencies and the third sector to deliver economic prosperity across Scotland’s regions.
Wider UK Government investment in Scotland
The UK Government is investing more than £2.3 billion over 10 years in dozens of important local and regional projects the length and breadth of Scotland, bringing much-needed economic and community renewal. These include:
· £140m Local Growth Fund
· £280m Pride in Place Programme (Phase 2)
· £12m Pride in Place Impact Fund
· £43m Growth Mission Fund
· £200m support for ten Scottish towns (Pride in Place Phase 1)
· £320m for the Glasgow City Region and North East Scotland Investment Zones
· £52m for the Inverness and Cromarty Firth, and Forth Green Freeports
· £81m for Community Regeneration Partnerships in Dundee, Scottish Borders, Argyll & Bute, and Na h-Eileanan Siar
· £188m to complete Levelling Up Fund projects
· £76m in UK Shared Prosperity Fund transition funding for 2025/26
· £60m innovation funding for Glasgow City Region (across the Innovation Accelerator 2025/26 and new Local Innovation Partnerships Fund)
· £20m Local Innovation Partnerships Fund for Tay Cities creative tech sector.
· £17.3m for Energy Transition Zone
· £5m for Community Ownership Fund projects
· £16m for Multi-Sport Grassroots Facilities over 2025 and 2026.
· £50m Defence Growth Deal
· £2.6m for V&A in Dundee
· £752m to deliver Scotland’s 12 City Region and Growth Deals over 2025/26 – 2034/35
