Vital locally-led projects for boosting business, supporting
local communities and regenerating high streets are at risk due
to government delays in approving councils’ investment plans.
The Local Government Association, which represents councils, said
clarity is urgently needed on when they will receive their
respective allocations from the UK Shared Prosperity Fund
(UKSPF), which the plans have been drawn up for. The Government
has previously committed to approve local investment plans by
October, but the decision has repeatedly been pushed back.
These delays reduce the time for councils to deliver the first
year allocations for the fund, with less than four months
remaining of this financial year. The LGA says the Government
should therefore work with councils and combined authorities,
including providing them with greater flexibilities on how they
use this funding across the three year programme, to minimise the
impact of the delay.
It comes as inflation and rising costs also makes councils’
ambitious plans to level up their communities more difficult to
achieve, underlining the importance of a prompt decision by
government. The LGA says the Government can go further and enable
councils to make longer term investments, by providing them with
the same time span and amount of funding as its predecessor
European programme.
The UKSPF, which replaces the seven-year European Structural and
Investment Fund, is intended to be used by councils and combined
authorities to create jobs, support small and medium enterprises,
invest in communities and improve pride in place across the
country.
£250 million was allocated directly to councils and combined
authorities for the first year of UKSPF, for 2022/23, out of a
total of £2.6 billion and was originally intended to be spent
between October 2022 and the end of March 2023, but this period
has now been squeezed due to successive delays.
It comes after the recent Autumn Statement confirmed that the
second round of the Levelling Up Fund allocated at least £1.7
billion to priority local infrastructure projects, with
successful bids to be announced before the end of the year.
Cllr Kevin Bentley, Chairman of the LGA’s People and Places
Board, said: “Local leaders want to get on with the work of
levelling up their communities, but are waiting on government to
give them the go-ahead when it comes to the UKSPF.
“Investment plans, setting out how they intend to boost
businesses, high streets, community support and a whole range of
other areas, have been submitted by councils and combined
authorities, but continual delays in approval make it harder for
them to deliver their ambitions.
“What is needed now is a clear decision from government on the
UKSPF, so that these vital projects – which are so essential to
our economic growth and recovery – can be kickstarted before
inflation and prices rise further.”
Notes to Editors
LGA: The UK Shared
Prosperity Fund (UKSPF)
