Council leaders in Scotland have voiced strong concerns over the UK Government’s approach to the new Local Growth Fund, warning that a lack of meaningful consultation risks undermining local economic outcomes.
At a COSLA meeting last week, leaders expressed frustration that councils were not properly engaged in the fund’s development or announcement, despite its significance for local growth and regeneration.
While COSLA recognises the potential value of the Local Growth Fund, leaders highlighted that overall funding for local areas appears reduced compared with the former UK Shared Prosperity Fund.
They warned this limits councils’ and partners’ ability to support vital activity alongside capital investment, including employability programmes, skills development, community regeneration and preventative economic interventions.
Particular concern was raised about the impact on No One Left Behind and on third sector organisations, which depend on stable, multi-year revenue funding to sustain services and workforce capacity.
COSLA’s Presidential Team will meet Scotland Office Minister Kirsty McNeill next week to press for greater flexibility, a better balance between capital and revenue funding, and a more collaborative approach to delivering sustainable, place-based economic development.
