LGA calls for extension to UKSPF

The Local Government Association (LGA) has called for an extension to the UK Shared Prosperity Fund (UKSPF), which is due to run out in March 2025.

The fund was established as a replacement for EU regional funding and councils say an extra 12 months is needed to secure support for communities and local businesses.

The LGA says the approaching deadline without certainty of an extension is starting to impact on delivery of valued locally-led schemes including on regenerating high streets, skills training and creating jobs.

The association is urging the Government to use the upcoming Autumn Budget to remove this cliff edge and provide fully flexible one-year additional funding, equal to the third and final year of the current UKSPF.

The LGA said councils are still awaiting clarification on other growth funds, including the third round of the Levelling Up Fund so they can progress with other schemes to boost local growth.

Cllr Martin Tett, chair of the LGA’s People and Places Board, said: “Boosting inclusive local growth is the key to tackling some of our persistent economic and skills challenges, be it in improving high streets, connectivity and mobile infrastructure, or investment in people and businesses.

“UKSPF is one of the biggest growth funds which have helped get hundreds of local projects and programmes off the ground, but we are now approaching a cliff edge when this support will abruptly stop in just over six months’ time.

“The Government should use the upcoming Budget to provide stability and certainty to councils and local businesses, who want to invest in communities, by providing an extra year of fully flexible, additional funding for UKSPF.

“As our report recommends, this should be part of a wider review of local growth funding which means councils have the powers, resources and long-term funding commitments to tackle regional inequalities, promote regeneration and boost economic development.”