Question to the Ministry of Housing, Communities and Local Government:

To ask His Majesty's Government what assessment they have made of the impact on communities that previously benefited from funding from the UK Shared Prosperity Fund, but which will no longer receive funding following the decision to end that fund and replace it with the Local Growth Fund.

At the Spending Review in 2025, the Government confirmed that we would protect funding for interventions that drive growth and strengthen communities in Scotland, Wales and Northern Ireland for the next three years, keeping it at the same overall level in cash terms as under the UK Shared Prosperity Fund (UKSPF) in the current year.

As part of this approach MHCLG is working with the Scotland Office to design a new £140m Local Growth Fund for Scotland, delivering a significant step change in UK investment strategy, supporting each nation and region to deliver long-term infrastructure for sustained economic growth.

The Local Growth Fund forms part of a broader suite of interventions and was never designed to replicate UKSPF on a like‑for‑like basis. It sits alongside other investments such as the Growth Mission Fund, the Pride in Place Impact Fund and the Pride in Place Programme which is helping build strong, resilient and integrated communities in areas that experience the most entrenched social and economic challenges.

In addition to this package of funding announced at the Spending Review, Scotland will also benefit from around £700m of other local and regional project funding over the next three years through: the Local Innovation Partnerships Fund, Pride in Place Programme Phase 1, Green Freeports, Investment Zones, Community Regeneration Partnerships, the Local Regeneration Fund and City Region and Growth Deals.

Alongside this, the UK Government has provided the Scottish Government with the largest Block Grant in the history of devolution which can be used flexibly for devolved governments’ priorities.