Guidance

UK Shared Prosperity Fund: frequently asked questions

Updated 1 August 2022

Introduction

The UK Shared Prosperity Fund (UKSPF) will support the UK government’s wider commitment to level up all parts of the UK. The UKSPF is a £2.6 billion Fund designed to succeed and improve upon EU structural funds. The UKSPF is not a direct replacement for EU structural funds. It improves on these funds by:

• focusing on UK priorities rather than policies dictated by the EU
• giving local areas a greater say in investments, by giving more direct accountability to elected local leaders

Money will be distributed to places based on a funding allocation for 3 years. As a delegated fund, places will be empowered to identify and build on their own strengths and needs at a local level, focused on building pride in place and increasing life chances, and delivered through 3 investment priorities: communities and place, local businesses and people and skills.

The department has set out the reporting requirements and related asks as part of the additional guidance. The additional guidance does not contain information that should in anyway delay the development of investment plans and is there to provide clarification only.

Additional guidance

The information provided in the prospectus is enough to develop local plans to administer the fund, including deciding on the staff/other resources you may need to manage your UKSPF allocation successfully.

In July, we will publish a concise set of information setting out our reporting requirements, branding requirements, indicator definitions and additional information on evaluation and assurance. We will also provide further guidance on subsidy control to assist with project selection. This information is not in any way required to scope your investment plans but is supplementary to assist lead local authorities in setting up delivery systems and processes.

Spend

1. What is the definition of spend?

In England, Scotland and Wales lead local authorities will receive upfront payments early in the financial year (with the exception of 2022-23 when the allocation will be paid on approval of the area’s investment plan). This will be subject to lead local authorities demonstrating in their investment plans and subsequent performance reports that a full annual payment will be spent and accounted for in-year.

In Northern Ireland, it is our intention to pay direct project deliverers in advance, on a 6 monthly cycle. This will be subject to investment and outputs being achieved in line with each intervention’s agreed application and spend and output profile.

‘Spent and accounted for’ includes expenditure invoiced and paid, as well as accruals, in line with financial accounting standards.

2. Will underspends need to be repaid?

In England, Scotland and Wales, we will consider withholding the next annual instalment until we have received credible plans setting out how the lead local authority will utilise underspends in the next year and/or appropriate milestones and spend have been achieved for the previous year.

Lead local authorities will need to establish appropriate programme management methods to maximise effective delivery and achieve spend to profile.

In Northern Ireland, we also reserve the right to withhold or delay payment and alter payment cycles where there are performance or other issues with delivery.

If we have ongoing concerns around future spending plans based on experience of local delivery to date, then we may pay in instalments based on performance, or otherwise delay or withhold future allocations.

No funding will be provided for activity after 31 March 2025 and we will expect underspends in the final year of the programme (2024/25) to be repaid to DLUHC.

As stated in the Prospectus, spending can also be backdated to 1 April 2022.

Investment priorities

3. Are proposals required across all 3 investment priorities?

No, local authorities should work with local partners to decide on the best mix to meet local needs and opportunities. This could be through investing in one or more investment priorities.

4. Is there any expectation that capital is spent against a particular priority?

No, however, we recognise that capital spend fits better with some interventions than others.

5. What evidence is expected to justify our choice in distribution of funds across the priorities?

In the investment plan, there is an opportunity to outline your local challenges and opportunities at a high level as your rationale for the distribution of funds you have selected. We would expect this to align with the interventions you then wish to Fund through UKSPF.

Additional rationale is expected for bespoke interventions. In accordance with section 151 statutory duties, the proposed spend should be in accordance with value for money principles. We will not ask for full business cases in the investment plans.

6. [England specific] If funding for People & Skills is not available until 2024/25, will interventions under this Investment Priority need to be completed in 1 year, with funding spent by March 25?

Yes, lead local authorities have the flexibility to Fund targeted people and skills provision in 2022-23 and 2023-24 where this is a continuing priority for 2024-25 and may be at significant risk of ending due to the tail off of EU funds. This flexibility may only be used where provision is currently delivered by voluntary and community organisations, having regard for the focus of the Fund and available funding where they meet the voluntary sector considerations.

In year 3, when the Fund has ramped up to £1.5 billion per annum, local authorities in England will be able to choose from a full range of people and skills investments to meet local needs and opportunities. All interventions should end by March 2025, or have a break clause allowing for closure by March 2025 if required (for example, yearly renewable funding).

Allocations and quantum

7. What is defined as administration? How will the 4% for administration work?

Each lead local authority in England, Scotland and Wales will be able to use up to 4% of their allocation by default to undertake necessary Fund administration, such as project assessment, contracting, monitoring and evaluation and ongoing stakeholder engagement.

Setting up the Fund may need a larger administration budget in the first year than in later years. This is acceptable so long as the percentage is not exceeded overall.

Places can also use the funding we have announced for investment plan development to support management and administration in the first year, in particular the setting up of new advisory groups, and engagement with partners.

8. The Prospectus says the proportion spent on capital should be 10%, rising to 20% by year 3. Is that a fixed or minimum proportion?

This is a minimum proportion of spending. Places should set out their preferred mix of capital and revenue funding in their investment plan, subject to the minimum proportion and taking account of local need and opportunities.

9. Where can local authorities find the local allocations?

The allocations are available to lead authorities via the investment plan portal. The screenshot below shows where the spreadsheets can be located on that portal.

10. Are the allocations set per local authority, as published, or can a region pool all funds for the whole region and manage as a total fund?

In England we expect areas to submit an investment plan per individual local authority, unless part of an agreed strategic geography set out in the Prospectus, e.g. Mayoral Combined Authorities. However, we strongly encourage collaboration in the delivery of interventions to address local and regional priorities, particularly in the delivery of supporting local business interventions and people and skills interventions.

In Scotland and Wales, where areas have agreed to work regionally, lead authorities would have the flexibility to produce a plan at a regional level and allocate funding within that regional group. Once funds have been paid, it is up to local authorities and the lead authority in the region to manage the relationship.

11. [NI] How will the 4% for administration work in Northern Ireland?

The funding will be administered by the Ministry of Housing, Communities and Local Government in Northern Ireland. We will work with Northern Ireland partners to agree an investment plan, including setting out how administrative funding will be optimally used.

Investment plans

12. Are lead local authorities able to speak to MHCLG about the delays local elections have caused on the development of the investment plan in readiness for 1 August?

Lead local authorities who have experienced an unforeseen delay as a result of local elections or a similar procedural issue that will impact meeting the submission deadline on 1 August 2022, should contact the Ministry of Housing, Communities and Local Government at ukspfenquiries@communities.gov.uk copying their Area Lead. Local authorities should consider the impact on delivery of a delayed submission of their investment plan before requesting an extension. We will consider short extensions where appropriate.

13. Will local authorities be committed to the indicative outputs and outcomes included in the Investment Plan?

In the investment plan we expect to see high level ambitions where places identify the outcomes they wish to target based on local context, and the interventions they wish to prioritise. We expect to work with areas to refine these high-level ambitions as the programme progresses. In line with the ethos of the fund, MHCLG will reduce bureaucracy and help places make pragmatic choices and adapt ambitions where necessary to maximise impact.

We recognise that some priorities may change following investment plan sign-off and we will work with the lead local authority should any changes need to be made to the investment plan.

It is important to note that we are looking for high level proposals and outcomes based on local context. The investment plan is not an exhaustive document containing detailed project or intervention planning.

14. Can funds be used to sustain existing programmes?

Yes, the Fund can support investment in interventions that start from 1 April 2022, enabling retrospective spend where they fit with the relevant interventions toolkit and all Fund requirements set out in the Prospectus. Lead local authorities should note that any such interventions will be at risk prior to sign-off of local investment plans.

15. How will the timing of the investment plan submission affect assessment?

We recognise that areas will want investment plans approved so that they can promptly receive funding. We expect first year payments to be made to lead local authorities from October 2022 onwards, following investment plan assessment and approval. Places can continue to Fund priorities for 2022/23 from 1 April 2022 and backdate this once funding is paid in the autumn. We encourage local areas to submit their investment plans as soon as they are ready, to build in time in case any further information is needed.

16. Are local authorities expected to have fully defined projects in their investment plans?

No, specific on projects are not expected at investment plan stage. We are asking places to set out what they would like to deliver at the intervention level and how they will bring forward projects. Places will not be disadvantaged if they do not include project level detail in the investment plan,

However, if projects have already been identified that places may want to Fund with UKSPF we strongly encourage places to include this in their investment plan, but we recognise that places may not yet have this information available. More detailed information will be expected to be provided during the performance management of UKSPF.

17. Do lead local authorities need to provide details for all interventions across 3 years?

In the investment plan we expect to see high level ambitions where places identify the outcomes they wish to target based on local context, and the interventions they wish to prioritise, under each investment priority, from the menu of options. These should be clearly linked to local opportunities and challenges. Following sign-off of the investment plan, we would expect areas to refine these high-level ambitions, with flexibility as local authorities begin delivery and select projects they wish to support.

18. How will payment work?

We will pay each lead local authority in England, Scotland and Wales annually in advance. In 2022-23, funding will be paid once the local investment plan has been signed off. In 2023-24 and 2024-25, we will pay towards the start of the financial year, taking into account performance in the preceding year.

19. Are there word limits in the Investment Plan questions?

No, although we would encourage concise answers which only include relevant information.

20. [Wales and Scotland only] Can an investment plan identify different priorities in different local authorities, or are regional priorities only allowed?

We would expect to see a regional plan, however this may consider variations at a local level or more specific local priorities that have been identified. We recognise that across regions priorities will vary, the same priorities do not have to be funded across the whole region.

21. [Wales and Scotland only] Where regional working is still being established, is there an opportunity for individual authorities to submit an initial investment plan with an intention to move to a regional approach at a later date?

Areas will be expected to submit one investment plan for the 3 years, this means that places will have to commit to a regional approach during the investment plan phase. However we welcome regional to deliver those priorities where appropriate.

22. [NI only] Who will be writing the NI Investment Plan?

The Ministry of Housing, Communities and Local Government will manage delivery in Northern Ireland, recognising the distinct and different role local authorities play there.

The UK government will take a role in convening partners from across Northern Ireland to develop the UKSPF Investment Plan. We will refine the plan in consultation with stakeholders in a way that reflects the needs of Northern Ireland’s economy and society. This group could include representatives from Northern Ireland Executive Departments, local authorities, businesses and the community and voluntary sector.

Engagement

23. How should lead authorities engage with MPs for the UKSPF?

We expect lead local authorities to demonstrate that they have actively reached out to MPs . They should provide advice to lead local authorities, reviewing the investment plan prior to submission to UK government for sign-off. Each plan will need to detail the MPs involved in the local partnership group (or otherwise engaged in reviewing the plan) and whether each are supportive of the final plan submitted to the UK government for consideration.

The investment plan needs to demonstrate local consensus for the plan through the partnership group. If it does not, ministers reserve the right to defer sign off until broad consensus is secured. Failure of one or more MPs to agree would not prevent consideration of the investment plan.

Lead local authorities are also encouraged to engage proactively and constructively with MPs on a periodic basis, post investment plan sign-off – including through a regular reviews and meetings of the partnership group in its delivery phase.

24. When does the local partnership group need to be set up?

Places should establish or designate a local partnership group to consult when developing their investment plan. Access to local insight and expertise is essential for each place to identify and address need and opportunity, and respond with the right solutions for each place.

Comprehensive and balanced local partnerships will be a core component of how the Fund is administered locally and will form an essential part of monitoring and reporting for the Fund over the funds 3 year duration. We will consider engagement within the assessment process.

25. [NI specific] How will the panel of stakeholders be determined?

The local Partnership Group will be convened by the UK government in collaboration with Northern Ireland partners.

Its membership will be reviewed on conclusion of the investment plan process, as the Fund moves into its delivery phase.

26. [NI specific] The Prospectus references a specific role for local government - can you expand on this?

We expect that local authorities will be represented on the Partnership Group, providing important local insight and knowledge to develop the Northern Ireland Investment Plan. Following development of the plan, local authorities will also play an important role in the delivery of the fund.

Match funding and relationship with other funds

27. Is there a requirement for match funding?

Although match funding is not required and will not form part of the investment plan assessment criteria, in England, Scotland and Wales, all lead local authorities are strongly encouraged to consider match funding from the private, public and third sectors and leverage options when selecting communities and place and supporting local business interventions to fund. This will maximise the value for money and impact of the fund.

28. Are there any exclusions to match funding?

No.

29. As local authorities won’t know the outcome of LUF bids prior to submission of investment plan, can the investment plan be amended if LUF bids aren’t successful?

We recognise that any UKSPF interventions that are reliant on securing Levelling Up Fund support will be indicative until this funding is secured. We would advise places to develop scalable and/or alternative proposals for inclusion in UKSPF investment plans if Levelling Up Fund projects are not successful.

Multiply in Scotland, Wales and Northern Ireland

30. How will Multiply funding be paid?

Lead local authorities in Scotland and Wales will receive a Multiply allocation as part of their annual payment, which we will monitor as part of reporting.

We expect Fund investment and outputs to be achieved in line with each place’s investment plan. We reserve the right to withhold or delay payment and alter payment cycles from 2023-24 onwards where there are performance or other issues with delivery.

It is our intention to support delivery and we propose to pay direct project deliverers (including Multiply deliverers) in Northern Ireland in advance, on a 6-monthly cycle. This may be paid via a grant funding agreement or an agreed alternative approach, depending on a number of factors including the status of the delivery body. This will be guided by the agreed investment plan for Northern Ireland. Each project deliverer will receive a clear statement of Fund requirements and obligations.

31. Will the Multiply national online adult numeracy platform be bilingual?

The multiply platform will be available in English and Welsh.

32. Is there a lower age limit for people wishing to access Multiply provision?

Multiply learners must be aged 19 or older on 31 August of the funding year without a L2 maths qualification. Wider people and skills activity can be targeted at under 19s.

33. Is the Multiply digital platform available for use UK-wide?

In addition to providing funding to local areas to deliver innovative solutions to increase adult numeracy levels, the Department for Education will also be launching a national UK-wide digital numeracy platform later in 2022. This will give people the ability to learn at their own place (including at work, or at home), and pace. Through the platform, we hope to see people sign up for personalised free online tutorials, to help them build their confidence and take the stepping stones towards a maths qualification. We also intend to signpost to Multiply courses in local areas and would welcome your support in ensuring this.

An interim solution is available now, comprising an information web page on Multiply, which signposts to existing maths provision via the National Careers Service and similar platforms in Scotland, Wales and Northern Ireland. A new online quiz designed to get adults to think about their numeracy skills and take action to boost them was launched in May. The short quiz asks 6 questions of varying difficulty to get adults to think about whether they need help and signposts to where people can access support to improve maths and numeracy skills, including fully funded maths courses up to GCSE.

34. Can Multiply funding be used to Fund wider ‘employability skills’ interventions that include confidence building and work skills alongside maths, and other core skills?

Multiply funded provision does need to be focused on numeracy, not other subjects, or skills.

In the national menu of interventions, intervention (j) is focused on embedding additional maths modules into other vocational courses. We know that adults often learn best when they can see the practical application of their learning - for example, ratios for mixing paint, or assessing roof angles, or calculating the number of bricks needed. That’s why we’d also like to see numeracy learning brought into other vocational courses, so people can build their skills in parallel

35. Is UKSPF financial years and multiply academic years?

Multiply and UKSPF are both financial years.

36. How does Ofsted fit with Multiply? Does delivery have to be in line with Ofsted?

We are in discussion with Ofsted concerning inspection of this provision and will provide further information on this in due course. We encourage Welsh and Scottish local authorities to work with the relevant bodies when developing their plans for Multiply, to see whether oversight by them is required.

Delivery

37. How should local authorities spend the £20,000 preparatory funding, will we need to evidence this in any way?

We are making an additional £20,000 available per lead local authority, or £40,000 for each Mayoral Combined Authority and the Greater London Authority in England, and strategic geographies in Scotland and Wales, to undertake initial preparatory work for the fund, including developing their local investment plan for submission in the summer.

It is for local authorities to decide how best to utilise this funding. It will be paid a fixed, lumpsum payment and local authorities will not be required to provide evidence of how this funding has been used. However, we will ask for local authorities to report how the money was spent as part of 6 monthly returns. Any unspent preparatory funding may be used to support the administration of the fund.

38. Should local authorities design their own application forms for projects? If so, what information do they need to capture?

Yes, lead local authorities should design their own application forms. Lead local authorities should determine the right level of information for their forms, taking account of local circumstances, legal obligations, Fund requirements, and the government Grants Functional Standard.

The UK government will publish the application processes and templates for Northern Ireland later this year.

39. Is there any guidance on how ‘competitions’ should be run?

See guidance on competitions for grant funding (PDF, 282KB).

40. [England only] Can local authorities contract LEPs to run the local Partnership engagement across multiple adjacent areas to save duplication?

It is for lead local authorities to determine how to manage local Partnership engagement, including which bodies are used for these tasks. The preparatory funding can be used for internal or external resources, as appropriate. Places can contract delivery/pay external bodies (which could include LEPs).

41. [Scotland and Wales only] Does MHCLG have to agree to the geography before the LA prepares/submits their investment plan?

It is for places to decide on the geographies. In Scotland we support delivery through Regional Economic Partnerships where this is the preference of local areas. In Wales we support delivery across the 4 regional strategic geographies which are coterminous with City and Growth Deal areas.

42. [NI] Prospectus notes that at risk payments can be made by GB lead authorities with effect from the start of the financial year, can this also be done here?

As part of the development of the Northern Ireland Investment Plan, the UK government will work with Northern Ireland partners to identify early focus for investment. This may include extensions to interventions that are already operating where this meets needs and opportunities and is the most appropriate delivery route.

43. [NI] What will your approach be to state aid?

We will require each project application to set out how it can be delivered in accordance with state aid and subsidy control. The precise arrangements will be set out in the application form and process, which we will publish later this summer.

44. [NI] When do you envision the application window to apply for funding will commence?

As part of the development of the Northern Ireland Investment Plan, the UK government will work with Northern Ireland partners to identify the appropriate time to seek applications later this year, as well as identifying early focus for investment.

45. [NI] Will there be a call for project submissions?

Yes – we anticipate calling for project applications to deliver the Northern Ireland Investment Plan. We will also consider commissioning where appropriate.

Timings and next steps

46. Is the additional guidance required to complete the investment plan?

Additional guidance will be published in the summer ahead of the submission date of 1 August. Further detail can be found at the beginning of this document, but the information already provided is enough to develop local plans to administer the fund.

47. How will monitoring work?

The milestones, expectations and timescales will be set out in the ‘Additional Guidance’ and agreed through a Memorandum of Understanding with each lead local authority. There will be a formal reporting request every 6 months, with qualitative updates on a more frequent basis also required.

Depending on timings of the first payment, for the second annual payment, lead local authorities may be asked to submit a report earlier than 6 months after the first report is submitted.

48. When will investment plans be approved and payments made?

The date for submitting your investment plan is 1 August. We will then assess them and the payment for 2022/23 will be made once your plan has been assessed and signed off.