Local Regeneration Fund

Alex Norris Excerpts

Tuesday 2nd September 2025 Written Statements

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Alex Norris)]

As set out in the landmark devolution White Paper, this Government were elected on a manifesto that promised a partnership approach with local authorities, resetting the relationship between central and local government, and supporting local leaders to drive growth.

To this end, I am delighted to announce to the House that, today, we will be bringing the Ministry of Housing, Communities and Local Government levelling-up fund, town deals and simplification pathfinders pilot funds together into a single, consolidated funding pot, the local regeneration fund.

We have listened to feedback from local authorities, who want less bureaucratic micromanagement, and more local control. Where previous Governments made unfunded promises to places they could not keep, we will fulfil those promises. Through this change, we will continue to honour all funding awarded via the constituent programmes, so local authorities are fully funded to deliver these programmes, while giving them the additional flexibility they need to get spades in the ground.

The decision to bring together these three funds, with a significant capital commitment of over £1 billion over the next two years, will allow local authorities access to a single pot of capital funding, with less bureaucratic reporting and more flexibility to adapt schemes to local needs, without asking central Government’s permission. We are committed to pushing power to local authorities, reducing burdens and allowing them to get on with delivery.

It is our firm expectation that projects already under way will be completed, for the benefit of local residents. In the small number of cases where projects are no longer viable, our consolidation means that money can still be used to deliver change. We expect that councils will rescope their plans and use the funding available for a new project in the area that originally stood to benefit, so local residents can feel the improvements to their everyday lives that they have been promised within the timeline of the fund.

As a result of these changes, we expect local authorities to be able to deliver faster, freeing them up to use the funding most effectively in a way that will maximise impact on the ground.

This new funding pot and its flexibilities only relate to the MHCLG element of the levelling-up fund. The Department for Transport remains responsible for the LUF schemes it leads and the processes by which they are delivered.

A full accounting officer note has been published and we have notified all local authorities who are due to receive funding from the MHCLG levelling-up fund, town deals and simplification pathfinders pilot programmes.

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