The UK Government has released the first £52.1 million from its £140 million Local Growth Fund to Scotland’s Regional Partnerships, after green-lighting three-year investment plans covering five regions.
Year 1 funding cleared to regional Accountable Bodies on or around 28 August 2026 and is being delivered directly to Regional Partnerships — collaborations between local government, the private sector, education and skills providers, enterprise and skills agencies and the third sector. The Government said the fund is designed to build physical infrastructure, establish high-growth commercial spaces and close skills gaps in areas with the lowest Gross Disposable Household Income (GDHI) per capita, including West Dunbartonshire, North Ayrshire, Dundee, Clackmannanshire and Fife.
Year 1 allocations, released now to enable delivery to begin, are:
- Glasgow City Region: £22,684,596 released, of a total three-year allocation of £60.9 million.
- Edinburgh & South East Scotland: £14,095,909 released, of £37.8 million.
- Tay Cities Region: £7,256,931 released, of £19.5 million.
- Ayrshire: £4,400,298 released, of £11.8 million.
- Forth Valley: £3,665,499 released, of £9.8 million.
“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,” said Douglas Alexander, Scottish Secretary.
“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 Local Growth Fund runs over three financial years, from 2026/27 to 2028/29, with funding for Years 2 and 3 rolled out as regions progress through their plans, subject to regular updates and annual reviews. Eligible regions were selected using objective GDHI-per-capita data and allocations set proportionally by population.
The Government said Scotland will be up to £25 million better off through the Local Growth Fund, Growth Mission Fund and Pride in Place funding than under the Shared Prosperity Fund, with up to £250 million of investment expected in Scottish communities over the next three years. Wider, it said it is investing more than £2.3 billion over 10 years in local and regional projects across Scotland.
