Guidance

UK Shared Prosperity Fund 2025-26: Technical note

Updated 13 December 2024

This technical note provides details of the key updates to the UK Shared Prosperity Fund for 2025-26.

The information below updates parts of the UKSPF Prospectus, which was produced for 2022-25 delivery.

This technical note should be used in conjunction with the UKSPF Prospectus to guide delivery of the Fund from April 2025. Except where specifically mentioned in this document, the guidance provided in the Prospectus remains unchanged.

1. Introduction

This section replaces section 1 of the UKSPF Prospectus.

1.1 The UK Shared Prosperity Fund – delivery of the government’s Missions

The UK government has set out an ambitious plan for change, focused on 5 national Missions: ambitious, measurable, long-term objectives that provide a driving sense of purpose for the country.

The UK Shared Prosperity Fund (UKSPF) proactively supports Mission-delivery: pushing power out to communities everywhere, with a specific focus to help kickstart economic growth and promoting opportunities in all parts of the UK.

The UK government’s Autumn Budget announced a further £900 million of funding for local investment by March 2026. All areas of the UK are receiving a further allocation of UKSPF - helping places take advantage of the Fund’s flexibility and plan now for delivery from April 2025.

For 2025-26, we have mapped existing interventions into Mission-led themes across the three priority areas: Communities and Place; Support for Local Business; and People and Skills (see diagram below).

The Fund’s mix of revenue and capital funding will ensure places deliver directly on the foremost Mission to kickstart economic growth. Alongside this, it will support the four remaining Missions, helping those at risk of being left behind and boost community cohesion, including supporting efforts to address homelessness, in areas right across the UK.

UKSPF investment priorities and the government’s Missions

Image description: This picture sets out the 5 government Missions.

• Mission 1: Kickstart economic growth
• Mission 2: Make Britain a clean energy superpower
• Mission 3: Take back our streets
• Mission 4: Break down barriers to opportunity
• Mission 5: Build an NHS fit for the future

It then shows the three investment priorities for UKSPF (Communities and Place, Supporting Local Business, and People and Skills), their underlying themes and the sub-theme/scope of each. It shows how the five Government Missions will be delivered by UKSPF activity under each priority and theme.

Communities and Place

There are two themes under the priority of Communities and Place, these are Healthy, Safe and Inclusive Communities, and Thriving Places.

Healthy, Safe and Inclusive Communities supports:

• Mission 2: Make Britain a clean energy superpower
• Mission 3: Take back our streets
• Mission 4: Break down barriers to opportunity
• Mission 5: Build and NHS fit for the future

Its scope includes improving health and wellbeing, reducing crime and the fear of crime, bringing communities together and tackling homelessness.

Thriving Places supports Mission 1: Kickstart economic growth. Its scope includes development of the visitor economy, and high streets and town centres improvements.

Supporting Local Business

The Support for Business theme sits under the Supporting Local Business priority. This is the only theme under this investment priority.

Support for Business supports:

• Mission 1: Kickstart the economy
• Mission 2: Make Britain a clean energy superpower
• Mission 4: Break down barriers to opportunity

Its scope includes advice and support to business, enterprise culture and start-up support, as well as business sites and premises.

People and Skills

The are two themes under the priority of People and Skills. These are Employability and Skills.

Both themes support:

• Mission 1: Kickstart the economy
• Mission 2: Make Britain a clean energy superpower
• Mission 4: Break down barriers to opportunity

The scope of the Employability theme includes supporting people, including those who are economically inactive, to progress towards and into sustained employment and support for young people who are at risk of becoming NEET.

The scope of the Skills theme includes essential skills (including numeracy, literacy, ESOL and digital) and employment related skills.

The Fund’s light-touch, delegated delivery model enables local government to continue investing in local priorities and target funding where it is needed most. It enables truly local decision making which will be planned and delivered by councils and mayoral authorities across England, Scotland and Wales (‘lead local authorities’).

In Northern Ireland, the UK government retains oversight of the Fund, working closing with local partners.

We will continue to engage with the Scottish and Welsh governments and the Northern Ireland Executive during the transition year.

2. What to use funding for

Section 2.1 to 2.3 of this technical note replaces section 2.1 to 2.5 of the UKSPF Prospectus. Section 2.4 of this technical note should be read alongside section 2.6 of the prospectus.

2.1 Using the Fund to meet local needs and support government priorities

Lead local authorities will continue to have flexibility to invest across a range of activities that represent the right solutions for their areas. For 2025-26 we have simplified the UKSPF interventions. We now have 5 UK-wide themes and twelve sub-themes that are focused explicitly on delivering the government’s Missions,  making the fund easier to manage, with less reporting to do. The twelve new sub-themes for UKSPF map to the previous up-to 53 interventions meaning UKSPF can still support the wide range of activity it has since 2022. We do not expect any bespoke interventions to be required for 2025-26.

2.2 Multiply

For 2025-26 the Multiply programme will not continue as a specific, ringfenced programme. Local authorities retain the flexibility to deploy their local allocation according to need, including a continuing ability to fund adult numeracy support alongside the wider suite of people and skills related activities.

2.3 Rural England Prosperity Fund

We are working closely with the Department for Environment Food and Rural Affairs and will update on the Rural England Prosperity Fund in due course.

2.4 Other policies or plans to take into account

Activities supported by UKSPF will need to consider updated local, regional and national policies and priorities – including those of the Scottish and Welsh governments and the Northern Ireland Executive where relevant. These include but are not limited to the ‘Get Britain Working’ white paper and ‘Invest 2035: the UK’s modern industrial strategy’ green paper.

3. Funding places will receive

This section replaces Section 3 of the UKSPF prospectus.

Every part of the UK will receive a UKSPF allocation for 2025-26. Find nation level allocations for England, Scotland, Wales and Northern Ireland.

Each place’s allocation will comprise of revenue and capital funding. The amount of revenue and capital funding for each lead local authority is set out on the allocations webpage. As per previous years, the capital allocation is a minimum amount.

4. How the Fund will be delivered

This section should be read alongside Section 4 of the UKSPF Prospectus. Any changes have been set out below.

4.1  Overview

The Ministry of Housing, Communities and Local Government (MHCLG) will continue to oversee the Fund at UK level for the transition year, working in close partnership with the devolved governments and other UK government departments.

The aim of the UKSPF extension year is to provide a smooth transition from the existing UKSPF programme to a new, future funding framework. The government is committed to restoring decision making over structural funding to representatives of Scotland, Wales and Northern Ireland, and we will work closely with the devolved governments to honour this commitment.

4.2  The role of lead local authorities

In England, Scotland and Wales, the role of lead local authorities for delivery of the Fund for 2025-26 remains the same. Lead local authorities will receive an area’s allocation to manage, including assessing and approving applications, processing payments and day-to-day monitoring.

See section 4.2 of the UKSPF Prospectus for further information specifically on the role of lead local authorities for UKSPF. Please note we will not require lead local authorities to submit a revised investment plan for 2025-26.

In Northern Ireland, MHCLG will continue to have delivery responsibility for the Fund in 2025-26.

Collaboration with other places remains strongly encouraged in the delivery of Fund interventions where it meets the needs of their place and achieves value for money or better outcomes for local people or businesses.

4.4 Delivery arrangements across the UK

4.4.1   England

In England, the Fund will operate over via the same lead local authorities as for 2022-25, except where devolution deals for areas have been agreed. There are no separate Multiply-only delivery arrangements for 2025-26.

Devolution

As part of our commitment to English devolution, the Greater Manchester and the West Midlands Combined Authorities will receive UKSPF funding through their integrated settlement for 2025-26.

Since the original UKSPF delivery geographies were published, new devolution deals in England have been agreed and delivery of UKSPF will transfer to the following new lead local authorities for 2025-26:

New lead local authority	Local authorities who will no longer receive UKSPF as lead local authority
North East Combined Authority	Durham County Council, Gateshead Metropolitan Borough Council, North of Tyne Combined Authority, South Tyneside Council, Sunderland City Council
York and North Yorkshire Combined Authority	City of York Council, North Yorkshire County Council
East Midlands Combined County Authority	Amber Valley Borough Council, Ashfield District Council, Bassetlaw District Council, Bolsover District Council, Broxtowe Borough Council, Chesterfield Borough Council, Derby City Council, Derbyshire Dales District Council, Erewash Borough Council, Gedling Borough Council, High Peak Borough Council, Mansfield District Council, Newark and Sherwood District Council, North East Derbyshire District Council, Nottingham City Council, Rushcliffe Borough Council, South Derbyshire District Council
Greater Lincolnshire Mayoral Combined County Authority	Boston Borough Council, East Lindsey District Council, Lincoln City Council, North East Lincolnshire Council, North Kesteven District Council, North Lincolnshire Council, South Holland District Council, South Kesteven, West Lindsey District Council
Hull and East Yorkshire Combined Authority	East Riding of Yorkshire Council, Hull City Council
Lancashire Combined County Authority	Blackburn with Darwen Borough Council, Blackpool Borough Council, Burnley Borough Council, Chorley Borough Council, Fylde Borough Council, Hyndburn Borough Council, Lancaster City Council, Pendle Borough Council, Preston City Council, Ribble Valley Borough Council, Rossendale Borough Council, South Ribble Borough Council, West Lancashire Borough Council, Wyre Borough Council
Devon and Torbay	East Devon District Council, Exeter City Council, Mid Devon District Council, North Devon District Council, South Hams District Council, Teignbridge District Council, Torbay Council, Torridge District Council, West Devon Borough Council
Surrey	Elmbridge Borough Council, Epsom and Ewell Borough Council, Guildford Borough Council, Mole Valley District Council, Reigate and Banstead Borough Council, Runnymede Borough Council, Spelthorne, Surrey Heath Borough Council, Tandridge District Council, Waverley Borough Council, Woking
Warwickshire	North Warwickshire Borough Council, Nuneaton and Bedworth Borough Council, Rugby Borough Council, Stratford-on-Avon District Council, Warwick District Council

Places with a new or revised devolution deal that is operational by 31 March 2025 (including those listed above or subsequently agreed) are not required to submit a revised investment plan, we simply ask that lead local authorities update us on plans for 2025-26 through routine reporting.

Local authorities that no longer act as ‘lead local authority’ for UKSPF from 2025-26 will be required to close down their UKSPF programme. Information on the closure process will be communicated in due course.

To support Fund delivery, we encourage new lead local authorities to collaborate with local authorities that have delivered UKSPF for 2022-25.

4.4.2   Scotland and Wales

In Scotland and Wales, the Fund will operate via the same lead local authorities as for the 2022-25 period.

We will continue to engage the Scottish and Welsh Governments during the transition year so that we are able to agree a path for delivery beyond March 2026.

4.4.3   Northern Ireland

In Northern Ireland, MHCLG will continue to have delivery responsibility for the Fund in 2025-26. We will continue to work closely with local partners through a Partnership Group, and with Northern Ireland Executive departments, to support the delivery of the Fund.

4.5 Day-to-day Fund administration

Each lead local authority in England, Scotland and Wales will retain the ability to use up to 4% of their allocation by default to undertake necessary Fund administration. Where not already agreed, lead local authorities must agree with local partners and report to MHCLG any plans to use more than 4% of their allocation to administer the Fund.

5. Who should be involved in the Fund

This section should be read alongside section 5 of the UKSPF prospectus.

Lead local authorities are strongly encouraged to engage with and seek support from local partners to deliver the Fund. This will ensure that Fund investments complement other activities in the area and meets Fund and local objectives.

A local partnership group is encouraged, and a guide to the types of stakeholders and groups that should be represented can be found in section 5.1 of the UKSPF prospectus.

The transition year for UKSPF is a pivotal point to reset relationships with devolved governments. The UK Government recognises the importance of engagement with the Scottish Government, Welsh Government and the Northern Ireland Executive, and intends to work closely and constructively on long-term future local growth policy developments.

6. Planning delivery for 2025-26

This section replaces section 6 of the UKSPF prospectus.

In line with the delegated delivery model, we will not require lead local authorities to submit a revised investment plan - we simply ask that lead local authorities update us on their plans for 2025-26 through routine reporting.

In Northern Ireland, MHCLG will be engaging with Northern Ireland Executive departments and the UKSPF Northern Ireland Partnership Group members to inform plans for 2025-26.

7. The Fund’s parameters

The Fund parameters for 2025-26 remain unchanged from those set out in sections 7.1, and 7.3 – 7.5 of the UKSPF prospectus. Any changes have been set out below.

7.2 When can Fund investment start?

An additional year of UKSPF funding for 2025-26 has been confirmed.

Funding for 2025-26 can be used to support investment in activities from 1 April 2025 to 31 March 2026, including continuations of existing activity where appropriate.

7.6 Complying with UK law

7.6.1    Subsidy Control and State Aid

Lead local authorities are required to comply with Subsidy Control Act 2022 and any relevant State Aid requirements.

Guidance and information on the UK subsidy control regime can be found here including the key requirements for public authorities.

7.6.2 Public procurement

All spend associated with the Fund must be compliant with the Procurement Act 2023 where relevant.

Further guidance and information on procurement for UKSPF can be found here.

7.7         Branding and publicity

Branding and publicity activity must be in line with the guidance which can be found here.

8. How we will pay places and projects

This section replaces section 8 of the UKSPF prospectus.

The Fund operates UK-wide and will continue to use the financial assistance power in the UK Internal Market Act 2020 for the 2025-26 transitional year to deliver funding to places across the UK.

8.1 England, Scotland and Wales

Lead local authorities will receive an updated Memorandum of Understanding, and grant determination letter, including a payment schedule, at the beginning of the 2025-26 financial year.

8.2 Northern Ireland

To support delivery, we will pay project deliverers in Northern Ireland part in-arrears, part in-advance, on a 6 monthly cycle. They will be paid via a grant funding agreement or a Memorandum of Understanding and Grant Determination Letter, depending on the status of the delivery body.

9. How we will measure performance

This section replaces section 9 of the UKSPF prospectus.

Lead local authorities (and project deliverers in Northern Ireland) will continue to be required to complete a formal reporting request every 6 months, on time and to the required standard. These reports must be signed off by the Chief Financial Officer or equivalent (for example the Section 151/Section 95 Officer in lead local authorities) before submission.

We are continuing to simplify the Fund where possible, including reducing the list of outputs and outcomes for 2025-26 and simplifying reporting requirements. An updated list of outputs and outcomes for 2025-26 will be published in due course.

We will also continue to require quarterly progress updates from Northern Ireland project deliverers.

Reporting, monitoring and performance management additional information will be updated in due course, including the additional information for Northern Ireland.

Fund evaluation will continue into 2025-26 and the UKSPF evaluation strategy will be amended in due course to reflect this.

10. Next steps

Lead local authorities should plan for 2025-26 delivery with local stakeholders. We will expect lead local authorities to inform us of their forecasts through routine reporting. We will organise a webinar in due course to support lead local authorities who will be delivering UKSPF for the first time.

In Northern Ireland, we will be engaging with Northern Ireland Executive departments and the UKSPF Northern Ireland Partnership Group members to inform plans for 2025-26.