
Scotland Office launches new UK Government £140m Scottish Local Growth Fund, where decisions will be made locally – not from far away.
The UK Government believes Scottish regions should play a greater role in delivering economic prosperity, & is backing them to do that.
The five regions are:

EDINBURGH & SOUTH EAST – £37.8 million
GLASGOW CITY REGION – £60.9 million
TAY CITIES REGION – £19.5 million
AYRSHIRE – £11.8 million
FORTH VALLEY REGION – £9.8 million

Launched today [Thursday 8 January] by Scottish Secretary Douglas Alexander, the Local Growth Fund will help drive economic prosperity across Scotland.
The five regions’ allocations from the programme over the next three years (26/27 – 28/29) are:
- Glasgow City: £60.9 million
- Edinburgh & South East: £37.8 million
- Tay Cities: £19.5 million
- Ayrshire: £11.8 million
- Forth Valley Region: £9.8 million
The programme will fund regional projects which will drive economic growth.
That might mean projects like infrastructure investment, business support, or skills development – projects which will make a real difference in terms of skilled jobs and people’s prosperity.

Secretary of State for Scotland Douglas Alexander said: “The UK Government is today backing regional economies across Scotland with £140 million of new investment.
“This new investment will allow local leaders to decide how best to use the funding, which could include projects to improve infrastructure, business support or skills development. The UK Government will now work with local partners to develop investment plans tailored to each region.
“By investing in local areas, reducing child poverty, and bringing down inflation, the UK Government is focused on delivering material change to people across the country – boosting living standards and improving public services.”
Further information on the Local Growth Fund
The LGF programme is subject to full business case clearance by MHCLG and HMT, and further details on the delivery of the LGF, including investment themes will be set out later in Q1 of 2026.
The new Scottish LGF will provide targeted funding to boost economic growth and improve living standards by investing in the regions that contain the areas with the lowest Real Disposable Household Income (RDHI) per capita.
Funding has been allocated at regional level, via Regional Economic Partnerships (REPs), to enable strategic decision-making and maximum growth impact. Allocations have been allocated across the five eligible REPs in proportion to their population.
REPs 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.
The detailed allocation methodology for the LGF is available at:
https://www.gov.uk/government/publications/local-growth-fund-scotland-allocation-methodology














