The Department for Levelling Up, Housing and Communities (DLUHC) has announced more information on the breakdown, timings and allocation criteria for the UK Shared Prosperity Fund (UKSPF), which will replace EU development financing.
The initial fund will total £2.6bn between 2022-2025, reaching £1.5bn per year by March 2025. Local areas across England will see £1.58bn, Scotland £212m, Wales £585m and Northern Ireland £127m. There is also a £559m adult numeracy programme for the whole UK called Multiply.
DLUHC said the allocation formula for the UKSPF takes into account local population data and a broadly based measure of need, including factors such as unemployment and income levels.
Michael Gove, the levelling up secretary, said: “The UK Shared Prosperity Fund will help to unleash the creativity and talent of communities that have for too long been overlooked and undervalued. By targeting this funding at areas of the country that need it most, we will help spread opportunity and level up in every part of the UK.”
Local areas will be asked to create and submit investment plans based on a conditional allocation of funding over the next three years. The investment could cover regenerating run-down high streets, fighting anti-social behaviour and crime or helping more people into jobs.
Gove confirmed that the UKSPF would only begin to match average EU funding from 2024/25, pointing out that previous EU programmes had “ramped up and down” and areas will continue to receive EU funding until the end of 2024.
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