Five regions across Scotland are set to benefit from a share of a new £140 million UK Government Local Growth Fund, launched by the Secretary of State for Scotland.
The fund aims to drive economic prosperity and improve living standards by investing in areas with the lowest real disposable household income per capita.
The LGF will provide targeted funding between 2026/27 and 2028/29, with allocations as follows:
- Glasgow City: £60.9 million
- Edinburgh & South East: £37.8 million
- Tay Cities: £19.5 million
- Ayrshire: £11.8 million
- Forth Valley Region: £9.8 million
The programme will support regional projects designed to stimulate growth, including infrastructure investment, business support initiatives, and skills development programmes.
These projects aim to create skilled jobs, strengthen local economies and boost prosperity across Scotland.
Scottish Secretary Douglas Alexander commented:
“The UK Government is today backing regional economies across Scotland with £140 million of new investment.
“This new investment will allow local leaders to decide how best to use the funding, which could include projects to improve infrastructure, business support or skills development. The UK Government will now work with local partners to develop investment plans tailored to each region.
“By investing in local areas, reducing child poverty, and bringing down inflation, the UK Government is focused on delivering material change to people across the country – boosting living standards and improving public services.”
Funding will be allocated via Regional Economic Partnerships (REPs) – collaborations between local government, private sector, education providers, enterprise agencies and the third sector. This approach ensures strategic decision-making and maximum impact for growth.
The LGF programme remains subject to full business case clearance by MHCLG and HMT, with further details on delivery and investment themes expected in Q1 2026.
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