WIREDGOV

Part of the UK Government's commitment to empowering local communities to create jobs and growth by spreading power throughout the country

Workers, apprentices, businesses and communities across Scotland are to benefit as the UK Government releases the first £52.1 million from the Local Growth Fund after green-lighting five regions’ three-year investment plans for the £140 million initiative.

The locally delivered fund targets Scotland’s Regional Partnerships that contain the areas with the lowest Gross Disposable Household Income (GDHI) per capita.

By trusting local knowledge over top-down directives, regional leaders have been empowered to design tailored plans that build physical infrastructure, establish high-growth commercial spaces, and close vital skills gaps.

Scottish Secretary Douglas Alexander said:

The UK Government is committed to empowering local communities by spreading power throughout the country. These funds will support local leaders throughout Scotland to create skilled jobs, help start up businesses and revive our local high streets. 

After months of close working directly with regional partners across Scotland, the UK Government is now releasing £52.1 million directly to regional leaders who know their communities best so delivery can begin. 

This funding targets the Scottish Regional Partnerships that contain the communities that need it most - areas like West Dunbartonshire, North Ayrshire, Dundee, Clackmannanshire and Fife - which have lower GDHI than other parts of Scotland. 

The £140 million package is allocated proportionally by population across five Scottish regions. Year 1 allocations, released now to enable delivery to begin, are as follows:

Glasgow City Region: total 3 year allocation of £60.9 million, with £22,684,596 now released.

Edinburgh & South East Scotland: total allocation of £37.8 million, with £14,095,909 now released.

Tay Cities Region: total allocation of £19.5 million, with £7,256,931 now released.

Ayrshire: total allocation of £11.8 million, with £4,400,298 now released.

Forth Valley: total allocation of £9.8 million, with £3,665,499 now released.

Funding is being delivered directly to Regional Partnerships to enable strategic decision-making and maximum growth impact. Regional Partnerships are collaborations between local government, the private sector, education and skills providers, enterprise and skills agencies and the third sector to deliver economic prosperity across Scotland’s regions.

Further information

The UK Government is investing more than £2.3 billion over 10 years in dozens of important local and regional projects the length and breadth of Scotland, bringing much-needed economic and community renewal.

The Local Growth Fund provides £140 million over three financial years (2026/27 to 2028/29) to drive regional growth and improve living standards.

Year 1 funding cleared to regional Accountable Bodies on or around 28 August 2026, allowing physical delivery and infrastructure procurement to commence immediately.

Funding for Years 2 and 3 will be rolled out as regions progress through their plans. Regions will work closely with the UK Government through regular updates and annual reviews to showcase their progress, demonstrate local impact, and ensure funding continues to flow smoothly to regional projects.

Eligible regions were selected using objective data identifying local authority areas with the lowest Gross Disposable Household Income per capita. Funding was then allocated based on regional population proportions.

Scotland will be up to £25 million better off through the Local Growth Fund, Growth Mission Fund and Pride in Place funding than it would have been under the Shared Prosperity Fund, with communities benefiting from up to £250 million of investment over the next three years.

We are providing targeted funding to the Scottish communities that need it most, while ensuring there is a generous settlement for the Scottish Government who should be passing that on to councils to fund day to day services and community groups.