Leader seeks clarity on Local Growth Fund

The Leader of Dundee City Council is to write to the UK Government seeking clarity on how the city will benefit from the Local Growth Fund.

Scottish Secretary Douglas Alexander said last week that the Tay Cities Region will receive £19.5million over the next three years from the Fund, which aims to support projects driving economic growth.

The Fund replaces the existing UK Shared Prosperity Fund, which comes to an end in March, and Council Leader Mark Flynn said he was concerned the announcement signalled less money than is currently being received.

“We have achieved a lot in Dundee by making good use of the UK Shared Prosperity Funding, from employability and digital skills to marketing the city as a tourism destination,” said Councillor Flynn.

“From the little information we have so far, what was announced last week is not new money and is likely to be less than we have been receiving under UKSPF.

“That is bad news, as is the fact that future money is likely to be for one-off capital investment rather than ongoing revenue funding.

“I’m concerned that programmes which were being funded through UKSPF – good programmes making a real difference in the city – will be put under severe financial pressure.”

Dundee has received around £7.7m over the past four years from the UKSPF. That has funded projects across three key themes: people and skills; local business support; and thriving places.

The new fund has been allocated at a regional level, to fund projects which will drive economic growth, such as infrastructure investment, business support and skills development.

The UK Government has indicated that it wants to work with local partners to develop investment plans tailored to each region.

Councillor Flynn said: “On behalf of the city, I have a number of questions about the funding which require urgent answers, with the end of UKSPF less than three months away.

“We need clarity on how the funding will be allocated. And we need detail, beyond high-level themes, so that strategic decisions can be made.

“I am writing to the Scottish Secretary, and hope to receive a quick response given the very tight timescales for the implementation of the Local Growth Fund.”