The UK Government has released £52.1 million from the Local Growth Fund to five Scottish regions, marking the first instalment of a £140 million initiative. This funding is intended to support workers, apprentices, businesses, and communities across Scotland by empowering regional leaders to implement tailored investment plans.
The Local Growth Fund targets Scotland's Regional Partnerships that include areas with the lowest Gross Disposable Household Income (GDHI) per capita, such as West Dunbartonshire, North Ayrshire, Dundee, Clackmannanshire, and Fife. The funds are designed to build physical infrastructure, establish high-growth commercial spaces, and address skills gaps.
Scottish Secretary Douglas Alexander stated that the UK Government is committed to empowering local communities by spreading power throughout the country, supporting local leaders to create skilled jobs, help start businesses, and revive high streets. The £52.1 million has been released directly to regional leaders after months of close working with regional partners.
The £140 million package is allocated proportionally by population across the five Scottish regions. The Glasgow City Region received £22,684,596, Edinburgh & South East Scotland received £14,095,909, Tay Cities Region received £7,256,931, Ayrshire received £4,400,298, and Forth Valley received £3,665,499. This initial funding for Year 1 was cleared to regional Accountable Bodies around 28 August 2026 to allow immediate delivery and infrastructure procurement.
Regional Partnerships, which are collaborations between local government, the private sector, education and skills providers, enterprise and skills agencies, and the third sector, will receive the funding directly. Funding for Years 2 and 3 will be released as regions progress through their plans, with regular updates and annual reviews to demonstrate impact.