Part of the UK Government's commitment to empowering local
communities to create jobs and growth by spreading power
throughout the country.
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 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.
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.
Edinburgh & South East Scotland: total allocation of £37.8
million, with £14,095,909 now released.
Tay Cities Region: total allocation of £19.5 million, with
£7,256,931 now released.
Ayrshire: total allocation of £11.8 million, with £4,400,298 now
released.
Forth Valley: total allocation of £9.8 million, with £3,665,499
now released.
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.
Further information
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.
The Local Growth Fund provides £140 million over three financial
years (2026/27 to 2028/29) to drive regional growth and improve
living standards.
Year 1 funding cleared to regional Accountable Bodies on or
around 28 August 2026, allowing physical delivery and
infrastructure procurement to commence immediately.
Funding for Years 2 and 3 will be rolled out as regions progress
through their plans. Regions will work closely with the UK
Government through regular updates and annual reviews to showcase
their progress, demonstrate local impact, and ensure funding
continues to flow smoothly to regional projects.
Eligible regions were selected using objective data identifying
local authority areas with the lowest Gross Disposable Household
Income per capita. Funding was then allocated based on regional
population proportions.
Scotland will be up to £25 million better off through the Local
Growth Fund, Growth Mission Fund and Pride in Place funding than
it would have been under the Shared Prosperity Fund, with
communities benefiting from up to £250 million of investment over
the next three years.
We are providing targeted funding to the Scottish communities
that need it most, while ensuring there is a generous settlement
for the Scottish Government who should be passing that on to
councils to fund day to day services and community groups.
