Implications of Local Growth Fund to be Considered

Implications for Dundee services resulting from a Westminster Government decision to change the local authority-level UK Shared Prosperity Fund (UKSPF) into a new regional Local Growth Fund, including the Tay Cities Region, will be considered by councillors.

A detailed report explains that several priority areas of activity in the city have been supported by UKSPF over recent years including up to £650,000 a year to support Dundee City Council’s Employability Team and £150,000 a year for the delivery of additional local services through Business Gateway Tayside.

Other projects include SME skills development provided by Dundee & Angus College and support for the visitor economy, including events and marketing.

The City Growth and Infrastructure Committee will hear that the Tay Cities Region will receive £19.5M in funding over the next three years.

While the £7.2M allocated in 2026/27 is similar to the UKSPF award in 2025/26, the majority of this funding is capital. In 2025/26 Dundee City Council received £1.9 million in revenue from the UKSPF, while the replacement Local Growth revenue allocation for the entire Tay Cities Region in 2026/2027 is only £2.2 million.

The report states that: “This will have particular implications for the delivery of future revenue funded programmes and projects at local level.”

Committee convener Cllr Steven Rome said: “Council leader Mark Flynn has already written to the UK Government seeking clarity on how the city will benefit from the Local Growth Fund.

“This report raises very concerning questions about the nature of the funding and the impact that the decreasing allocation could have on the continuation of some very important economic work in Dundee going forward.

“Previous investment through UKSPF has enabled us to deliver high quality skills training, support people into sustained, suitable employment and businesses with their productivity, growth and innovation.

“I am worried about the implications that this new funding arrangement will have. We need answers urgently for the city.”

The Local Growth Fund is due to start this April, but the UK Government has not yet issued investment themes or priority spend areas.

The report adds: “The late announcement of the programme increases the risk of rushed decision-making and potential disruption to ongoing or critical services. “

The committee is being asked to delegate officers to engage with partners across the region to develop the investment plan required and report back to Committee.

Councillors will be told that city council officers are working closely with regional colleagues and the Scotland Office, which is leading on Local Growth Funding in Scotland, to support the development of the new programme.

The City Growth and Infrastructure Committee meets on Monday February 16.