I am responding as the matter of Scotland's Rural Economy falls within my portfolio. I take the matter of sustainable rural development very seriously and I regularly discuss this matter with colleagues in the Scottish Government and Local Authorities, including in a visit to the Isle of Lewis shortly after my appointment as Minister.

The UK Government recognises the importance of tackling rural depopulation, and we are committed to supporting these communities by boosting investment and opportunities.

The UK Government is ensuring that up to 60,000 young people across Scotland have real pathways into work, whether that's in our growing renewables sector, in construction trades that are crying out for skilled workers, or in hospitality. The Government has also recently committed £10 million towards the creation of Defence Technical Excellence Colleges (DTECs) as part of the £50 million Scotland Defence Growth Deal. Defence is a key sector for providing skilled jobs across all parts of Scotland, from Faslane to Lossiemouth.

This UK Government’s Industrial Strategy sets out how we will grow our economy by doubling down on our national strengths, despite global uncertainty. This includes investing in Scotland’s huge contribution to the UK economy: in energy, defence, advanced manufacturing, life sciences and other sectors. We are also backing the world-class food and drink that so often originates in rural Scotland through our trade agreement with India and, shortly, the European Union.

The UK Shared Prosperity Fund (UKSPF) has now come to an end across the UK following a year of transition funding in 2025/26, and we are now providing new targeted investments to areas that need it most.

The UK Government is committed to supporting long-term economic growth and is investing £350m for projects that benefit remote rural and very remote rural areas. This includes: £60m for Community Regeneration Partnerships for Argyll & Bute, Scottish Borders, and the Western Isles; £47m to complete Local Regeneration Fund projects in rural areas, including the Fair Isle Ferry, and projects across Scottish Borders, Dumfries and Galloway and rural South Lanarkshire; £25m seed capital funding for the Inverness and Cromarty Firth Green Freeport; £60m in Pride in Place Programme funding across Sutherland, Orkney, and Lewis; and £158m to complete delivery of the Inverness & Highland, Moray, Argyll & Bute, Borderlands, and Islands Growth Deals. This Government is backing rural Scotland.

It must be noted, however, that responsibility for many of the issues faced in rural Scotland - such as provision of housing, transport, infrastructure, digital connectivity, training and skills development - are devolved matters that come under the control of the Scottish Government. We will continue to work with them to ensure that the actions that both governments take will benefit all of the people of Scotland, including those in rural communities.

While the UK Shared Prosperity Fund (UKSPF) ended in March 2026, funding for 2025-26 can still be used to support investment in activities up to 30 September 2026, to allow local authorities and partners time to maximise spend of their existing allocations.

The Government’s new approach emphasises more stable, longer-term funding and clearer planning horizons through the Local Government Finance Settlement, alongside targeted interventions that support growth and strengthen communities, including the Local Growth Fund and the Pride in Place Programme.

Delivery of the UK Shared Prosperity Fund (UKSPF) is delegated to lead local authorities who are responsible for managing the funding allocation for their area, including assessing and approving project applications, processing payments and day-to-day monitoring. As a result, MHCLG does not hold detailed project level data.

Up to September 2025, the UK Shared Prosperity Fund (UKSPF) in Northern Ireland has supported around 36,000 people. Of these, 12% have sustained work for at least six months, 27% undertook education activity and 7% participated in volunteering opportunities. Definitions for these indicators are published here: UKSPF_Indicators_25-26_.xlsx. For those declaring gender, 52% were female.

The UKSPF allocated funding for economic inactivity projects by competition. Provision was available in all parts of Northern Ireland. Where any area was under-served, we have encouraged deliverers to broaden their geographic reach.

My Department are working in close partnership with the Northern Ireland Office and Northern Ireland Executive to design and deliver the new Local Growth Fund in Northern Ireland, with more information to follow.

Up to September 2025, the UK Shared Prosperity Fund (UKSPF) in Northern Ireland has supported around 36,000 people. Of these, 12% have sustained work for at least six months, 27% undertook education activity and 7% participated in volunteering opportunities. Definitions for these indicators are published here: UKSPF_Indicators_25-26_.xlsx. For those declaring gender, 52% were female.

The UKSPF allocated funding for economic inactivity projects by competition. Provision was available in all parts of Northern Ireland. Where any area was under-served, we have encouraged deliverers to broaden their geographic reach.

My Department are working in close partnership with the Northern Ireland Office and Northern Ireland Executive to design and deliver the new Local Growth Fund in Northern Ireland, with more information to follow.

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 across the UK.

While government support for local growth is broader than any single funding stream, we recognise the challenges around local capacity and impact on organisations delivering UKSPF-funded services, including within the voluntary and community sectors. Government is continuing to work closely with local government and delivery partners to help manage this transition, including by extending the UKSPF expenditure deadline to 30 September 2026, to provide local authorities and partners with greater flexibility to maximise spend.

We understand that Shropshire is not currently a part of a devolution arrangement, but encourage expressions of interest for Foundational Strategic Authorities in line with the invitation issued on 12^th February (Areas for producing spatial development strategies - GOV.UK).

The UK Shared Prosperity Fund (UKSPF) has a light-touch delegated delivery model, empowering lead local authorities to make decisions on how funding is allocated in their area. As a result, MHCLG does not hold annual project level data.

However, lead local authorities have reported investment in five discrete projects supporting victims of sexual violence and domestic abuse in Scotland over the period April 2022 to March 2026, to the value of £307,714 (actual cost). We anticipate that other projects will also have supported victims of sexual violence and domestic abuse as part of their work, but this information is not held by the department.

The UK Shared Prosperity Fund is ending in March 2026. No new funding has been allocated for the period 2026-27.

My department has worked closely with Northern Ireland partners to ensure the funds address the needs and opportunities of Northern Ireland’s people, businesses, and communities, contributing towards the delivery of the Northern Ireland Economic Strategy.

In Northern Ireland, the UK Shared Prosperity Fund invested £150 million into over 60 projects 2022-23 to 2025-26, helping people move towards work, support local businesses to start, thrive and grow, and invest in communities across Northern Ireland.

In the first two years of the UK Shared Prosperity Fund (UKSPF), covering the financial years 2022–23 and 2023–24, the total core UKSPF allocation was £762,669,654. Of this total allocation, £174,447,409 remained unspent at the end of 2023-24 and this amount was carried forward to support UKSPF delivery in 2024-25.

The UK Shared Prosperity Fund (UKSPF) has a light-touch delegated delivery model, empowering lead local authorities to make decisions on how funding is allocated in their area, including setting their own eligibility criteria.

Volunteering activities and organisations may be supported where this meets local need.

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.

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.

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.

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.

With the UK Shared Prosperity Fund (UKSPF) ending in 2026, the Government is changing how local growth is funded, as part of a wider approach comprising targeted interventions to drive growth and strengthen communities.

Across these new interventions, Scotland will receive the same annual funding in cash terms over the next three years as it would have received under the UKSPF this year to support economic growth, community cohesion, regeneration and public realm improvements - around £76 million a year and £228 million over the Spending Review period.

As part of this approach MHCLG and the Scotland Office are working together to design and deliver a new Local Growth Fund for Scotland. The programme will fund regional projects which will drive economic growth. That might mean projects like infrastructure investment, business support, or skills development - projects which will make a real difference in terms of skilled jobs and people’s prosperity. We will share the full investment and interventions framework in due course.

Further, the Pride in Place Programme is providing support to Scottish communities, helping build strong, resilient and integrated communities in areas that experience the most entrenched social and economic challenges.

By investing in local areas, reducing child poverty, and bringing down inflation, the Government is focused on delivering material change to people across the country – boosting living standards and improving public services. This sits alongside substantial increases to devolved budgets through the Barnett formula as a result of greater funding for English local authorities, giving devolved governments additional flexibility to target resource spending to their priorities, including tackling child poverty.

The Ministry of Housing, Communities & Local Government is working in close partnership with the Northern Ireland Office and the Northern Ireland Executive designing an Investment Plan for delivery of the new Local Growth Fund. The Local Growth Fund represents a significant step change in UK investment strategy, supporting each nation and region to deliver long-term infrastructure for sustained economic growth.

The devolved governments, including the Northern Ireland Executive have also received substantial budget increases through the Barnett formula as a result of greater funding for English local authorities. This provides the devolved governments with additional flexibility enabling them to target resource to their priorities.

We appreciate the urgency of providing certainty about Local Growth Fund delivery and acknowledge the pressures facing the voluntary and community sector. The Ministry of Housing, Communities & Local Government has therefore agreed with the Northern Ireland Office and the Northern Ireland Executive to commission economic inactivity delivery for 2026-27, and engagement with project deliverers is already underway. In addition, MHCLG are also providing additional flexibility to projects to use any UK Shared Prosperity Fund budget that remains unspent at the end of March 2026, for activities up to September 2026.

The Northern Ireland Office and the Northern Ireland Executive are also planning engagement from early 2026 to collaborate with the sector to design economic inactivity support from 2027 onwards.

The Ministry of Housing, Communities & Local Government is working in close partnership with the Northern Ireland Office and the Northern Ireland Executive designing an Investment Plan for delivery of the new Local Growth Fund. The Local Growth Fund represents a significant step change in UK investment strategy, supporting each nation and region to deliver long-term infrastructure for sustained economic growth.

The devolved governments, including the Northern Ireland Executive have also received substantial budget increases through the Barnett formula as a result of greater funding for English local authorities. This provides the devolved governments with additional flexibility enabling them to target resource to their priorities.

We appreciate the urgency of providing certainty about Local Growth Fund delivery and acknowledge the pressures facing the voluntary and community sector. The Ministry of Housing, Communities & Local Government has therefore agreed with the Northern Ireland Office and the Northern Ireland Executive to commission economic inactivity delivery for 2026-27, and engagement with project deliverers is already underway. In addition, MHCLG are also providing additional flexibility to projects to use any UK Shared Prosperity Fund budget that remains unspent at the end of March 2026, for activities up to September 2026.

The Northern Ireland Office and the Northern Ireland Executive are also planning engagement from early 2026 to collaborate with the sector to design economic inactivity support from 2027 onwards.

The Ministry of Housing, Communities & Local Government is working in close partnership with the Northern Ireland Office and the Northern Ireland Executive designing an Investment Plan for delivery of the new Local Growth Fund. The Local Growth Fund represents a significant step change in UK investment strategy, supporting each nation and region to deliver long-term infrastructure for sustained economic growth.

The devolved governments, including the Northern Ireland Executive have also received substantial budget increases through the Barnett formula as a result of greater funding for English local authorities. This provides the devolved governments with additional flexibility enabling them to target resource to their priorities.

We appreciate the urgency of providing certainty about Local Growth Fund delivery and acknowledge the pressures facing the voluntary and community sector. The Ministry of Housing, Communities & Local Government has therefore agreed with the Northern Ireland Office and the Northern Ireland Executive to commission economic inactivity delivery for 2026-27, and engagement with project deliverers is already underway. In addition, MHCLG are also providing additional flexibility to projects to use any UK Shared Prosperity Fund budget that remains unspent at the end of March 2026, for activities up to September 2026.

The Northern Ireland Office and the Northern Ireland Executive are also planning engagement from early 2026 to collaborate with the sector to design economic inactivity support from 2027 onwards.

We delivered a record settlement for Northern Ireland in the Budget to strengthen public services and to kick-start growth. The local growth fund, designed in partnership with the Executive, will see £45 million every year to support local growth. I am very happy to make sure that Ministers meet the hon. Gentleman to discuss his particular concerns.