Local growth funds

This briefing is a summary of current government administered funds and initiatives designed to support local economic growth.

It includes descriptions of, and where applicable, funding awarded from the following funds and initiatives:

• The Levelling Up Fund
• The Towns Fund
• The Community Renewal Fund
• The Shared Prosperity Fund
• Investment Zones
• The Long-Term Plan for Towns

It also includes a summary of the assessment of the effectiveness of these funds published by the National Audit Office and a summary of government plans for these funds described in the Levelling Up White Paper.

For more information on the Levelling Up White Paper and the levelling up agenda in general, see the Library briefing on the subject.

The Levelling Up Fund

The Levelling Up Fund was announced in the 2020 Spending Review and ran for three funding rounds, awarding total funding of £4.8 billion. The Fund focused on capital investment in local infrastructure and was aimed at those areas “most in need of levelling up.”

The Towns Fund

In 2019, 101 towns in England were selected to develop “Town Deals” and bid for up to £25 million (or up to £50 million in exceptional circumstances), with funding designed to address issues such as ageing populations, limited regional economic opportunities and lack of investment.

The Community Renewal Fund

The Community Renewal Fund was designed as a pilot funding programme in preparation for the introduction of the UK Shared Prosperity Fund, which is designed to replace the EU structural funds.

The UK Shared Prosperity Fund

The UK Shared Prosperity Fund (UKSPF) is intended to reduce inequalities between communities, as part of the previous government’s wider “levelling up” agenda and designed to replace funding received from the EU Structural Funds.

Investment Zones

Investment Zones are geographically concentrated areas in which government funding and tax incentives are available for businesses. Investment Zones offer similar incentives to Freeports and Enterprise Zones.

The Long-Term Plan for Towns

Under the Long-Term Plan for Towns, 75 towns are scheduled to receive £20 million in the form of a “ten-year endowment style fund.” Selected towns are required to develop a ten-year Long-Term Plan for their town.