The Local Growth Fund: England has been allocated as set out in our place selection and allocation methodology note. The evaluation of the Local Growth Fund will be part of the wider programme of evaluation of devolution within England and the proposed scope is set out in our Local Growth Fund (England): technical guidance.

To secure the release of their Local Growth Fund allocation for financial year 2026-27, Regional Partnerships in Scotland are required to submit a 3-year Investment Plan by 29 May 2026. The Scotland Office and Ministry of Housing, Communities and Local Government will review and sign-off these plans before the release of year 1 funds - anticipated in Summer 2026.

The Local Growth Fund has the scope to support economic growth in Northern Ireland through investment in a broad range of interventions including infrastructure, innovation, business support and skills MHCLG and the Northern Ireland Office are working with the Northern Ireland Executive to design and deliver the funding in Northern Ireland, ensuring that investment aligns with Northern Ireland’s priorities and delivers meaningful impact for local people.

My Department are working in close partnership with the Northern Ireland Office and the Northern Ireland Executive to design and deliver the new Local Growth Fund in Northern Ireland. More detailed information on delivery of the funding will follow.

The Local Growth Fund will drive economic growth and improve living standards by supporting infrastructure, innovation, business support and skills. MHCLG and the Northern Ireland Office are working with the Northern Ireland Executive to design and deliver the funding in Northern Ireland, ensuring that investment aligns with Northern Ireland’s priorities and delivers meaningful impact for local people.

With the UK Shared Prosperity Fund concluding in 2026, the government is moving away from short-term, uncertain funding cycles and towards a clearer, more stable long-term funding approach through the Local Government Finance Settlement, complemented by targeted interventions to support growth and strengthen communities. The new £902 million Local Growth Fund is just one component of this strategy; government support for local growth is broader than any single funding stream.

We acknowledge the pressures facing the voluntary and community sectors. By allocating the Local Growth Fund at the Mayoral Strategic Authority level, we are empowering regional leaders to take a more strategic, joined-up approach to investment – one that reflects the real economic geographies in which people live, work and do business. The fund is designed to equip mayors to boost regional productivity through investing in infrastructure, supporting businesses, and helping people find jobs and acquire new skills. Decisions about funding for specific organisations and interventions are for regional leaders to take in line with their local priorities.

The UK Government is providing targeted funding to the places in Scotland that need it most, while simultaneously delivering the largest Block Grant settlement for the Scottish Government in the whole history of devolution, which they can use to improve general funding settlements for local government services and priorities.

The Local Growth Fund is targeting five regions that contain the local authorities with the lowest Real Disposable Household Income per capita (RDHI) in Scotland, which is an established metric for measuring spatial disparities in living standards across the country. The local authorities in the North East Scotland region had higher living standards and so did not meet the threshold for funding from this programme.

The Local Growth Fund is just one UK Government investment programme and the North East region is benefiting from more than £200m in other investments, including the North East Scotland Investment Zone; Pride in Place Programme funding for Peterhead and Aberdeen; Local Regeneration Fund projects in Peterhead and Macduff; support for the Energy Transition Zone; and the completion of the Aberdeen City Region Deal.

Other rural areas of Scotland, including the Highlands and Islands and South of Scotland, are benefitting significantly from more than £400m in UK Government investment.

The UK Government is providing targeted funding to the places in Scotland that need it most, while simultaneously delivering the largest Block Grant settlement for the Scottish Government in the whole history of devolution, which they can use to improve general funding settlements for local government services and priorities.

The Local Growth Fund is targeting five regions that contain the local authorities with the lowest Real Disposable Household Income per capita (RDHI) in Scotland, which is an established metric for measuring spatial disparities in living standards across the country. The local authorities in the North East Scotland region had higher living standards and so did not meet the threshold for funding from this programme.

The Local Growth Fund is just one UK Government investment programme and the North East region is benefiting from more than £200m in other investments, including the North East Scotland Investment Zone; Pride in Place Programme funding for Peterhead and Aberdeen; Local Regeneration Fund projects in Peterhead and Macduff; support for the Energy Transition Zone; and the completion of the Aberdeen City Region Deal.

Other rural areas of Scotland, including the Highlands and Islands and South of Scotland, are benefitting significantly from more than £400m in UK Government investment.

The UK Government is providing targeted funding to the places in Scotland that need it most, while simultaneously delivering the largest Block Grant settlement for the Scottish Government in the whole history of devolution, which they can use to improve general funding settlements for local government services and priorities.

The Local Growth Fund is targeting five regions that contain the local authorities with the lowest Real Disposable Household Income per capita (RDHI) in Scotland, which is an established metric for measuring spatial disparities in living standards across the country. The local authorities in the North East Scotland region had higher living standards and so did not meet the threshold for funding from this programme.

The Local Growth Fund is just one UK Government investment programme and the North East region is benefiting from more than £200m in other investments, including the North East Scotland Investment Zone; Pride in Place Programme funding for Peterhead and Aberdeen; Local Regeneration Fund projects in Peterhead and Macduff; support for the Energy Transition Zone; and the completion of the Aberdeen City Region Deal.

Other rural areas of Scotland, including the Highlands and Islands and South of Scotland, are benefitting significantly from more than £400m in UK Government investment.

What plans he has for the delivery of the Local Growth Fund in Northern Ireland.

I thank the hon. Gentleman for meeting me with people from parts of the voluntary sector. As he said, local growth funding will direct capital funding into the enabling infrastructure that is required for boosting the Northern Ireland economy. That sits alongside a £19.3 billion spending review settlement and £370 million in Budget funding to the Executive, which has the flexibility to support programmes delivered by the voluntary and community sector. But as we have heard, the voluntary and community sector is under huge pressure, and we are committed to working with the Northern Ireland Office and the Executive to find ways to support the sector through the transition.

I thank the Minister for meeting me to discuss the concerns raised by the voluntary community sector in Northern Ireland about how the fund will be split between capital and revenue. We are now looking at a fund that is more capital-heavy than revenue-heavy, and the Northern Ireland Commissioner for Children and Young People has said that the shift towards capital-heavy investment fails to recognise the reality that youth and community work is relational, intensive and people-driven, not infrastructure-driven. Will the Minister continue to work to shift the balance between capital and revenue, so that the funding supports the people who use it?

With funding from the UK shared prosperity fund ending, we are committed to continuing local growth funding in Northern Ireland to boost productivity and growth. We are working closely with the Northern Ireland Executive and the Northern Ireland Office to design and deliver an investment plan that will support infrastructure, business growth, and skills and employment.

We have committed to local growth funding to boost growth in Scotland. We have also delivered record investment to the Scottish Government, who have in their gift the ability to invest in communities and in programmes that will drive the prosperity of local areas. The hon. Gentleman should not be looking to national Government; we have done our part—now it is over to the Scottish National party.

With local growth funding from Moray council, in my constituency, stopping, associated progress in digital connectivity will stop, business advice and growth services will reduce, and there will a much-reduced skills development programme. A total of 14 staff will be made redundant, with further scope for redeployment. Why is the Minister content to preside over these funding cuts and redundancies?