Communities, businesses and apprentices across Scotland are set to benefit from a major economic boost after the UK Government released the first £52.1 million from its £140 million Local Growth Fund.
The funding follows the approval of five regional investment plans and is aimed at supporting areas with some of the lowest levels of Gross Disposable Household Income per capita. The three-year programme is designed to help regional leaders drive economic growth, create skilled employment opportunities and strengthen local economies.
Rather than imposing centrally directed projects, the fund gives Regional Partnerships the freedom to develop investment plans tailored to local needs. Projects are expected to focus on improving infrastructure, developing high-growth commercial spaces and tackling skills shortages.
The funding will be delivered directly to Scotland's Regional Partnerships, enabling them to make strategic decisions based on local priorities and economic challenges.
Regional Partnerships bring together local authorities, businesses, education providers, skills agencies and voluntary sector organisations to deliver long-term economic growth across their areas.
Douglas Alexander, Secretary of State for Scotland, 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.”
The investment is targeted at regions containing communities facing greater economic challenges, including West Dunbartonshire, North Ayrshire, Dundee, Clackmannanshire and Fife.
The £140 million funding package has been distributed across five Scottish regions based on population, with the first-year allocations now released:
- Glasgow City Council - £22.68M
- Edinburgh and South East Scotland - £14.10m
- Tay Cities Region - £7.26m
- Ayrshire - £4.40m
- Forth Valley - £3.67m
The funding is expected to support a range of projects aimed at boosting productivity and economic resilience. Investment will focus on creating new employment opportunities, supporting business growth, improving local infrastructure and helping workers gain the skills needed for future industries.
By placing decision-making powers in the hands of local partnerships, ministers hope the programme will deliver long-term economic benefits while addressing regional inequalities and supporting sustainable growth across Scotland.
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