UK Shared Prosperity Fund

In a statement to the House of Commons, a minister discussed the upcoming Budget and the future funding of the UK Shared Prosperity Fund (UKSPF). The minister acknowledged that the UKSPF's future funding is a matter for the Chancellor, but used the debate to discuss the merits of the fund, lessons learned from its implementation, particularly in local government, and the approach to local growth funds under the new Labour Government. The minister emphasized that the Government's top mission is to boost economic growth across the UK and believes that an improved version of the UKSPF could make an important contribution to that, while also supporting local communities and boosting regeneration efforts. The minister praised the Under-Secretary of State for Housing, Communities and Local Government for his attendance and commitment to local growth and community cohesion. The minister then discussed the UKSPF's introduction as a domestic replacement for the European structural and investment fund after Brexit. While the previous funding provided by the Conservative Government did not match the European fund, it did provide local authorities with some devolved funding to support local priorities, with a focus on regeneration, business support, and skills. Drawing on the minister's own experience as a former Medway council cabinet member responsible for distributing the UKSPF, the minister highlighted that Medway council's approach was considered best practice by Whitehall officials. The minister explained that in Medway, the UKSPF was used to support local community groups, businesses, and charities, which were considered best placed to recognize and address the needs of their areas. This empowering, community-led approach, rather than a top-down approach, was well-received and led to the establishment of an SPF network that facilitated joint community projects. The minister also emphasized the UKSPF's potential to support broader regeneration efforts, particularly in revitalizing town centers. In Medway, small pots of UKSPF money were used to deliver significant economic and social benefits, such as hosting successful high street events like the Chatham Chinese New Year festival, which saw a 25% increase in footfall on the high street. Additionally, the minister discussed how the UKSPF was used in Medway to provide small feasibility funds to help community groups demonstrate the viability of their ideas, enabling them to then attract funding from other sources. The fund was also used to help community groups transition into more financially sustainable structures, such as charitable incorporated organizations, and to provide grants to businesses for technology upgrades and energy-efficiency improvements. The minister concluded by highlighting the importance of the UKSPF's ability to deliver longer-term benefits and the need for schemes that can continue to support local communities and drive economic growth in the future.