Local Growth Deals

The June 2013 Spending Review saw the government ask Local Enterprise Partnerships (LEPs) to develop multi-year local Strategic Economic Plans, which would then be used for negotiations on ‘Growth Deals’. These deals would see LEPs awarded funding from the Single Local Growth Fund, created in the 2013 Spending Review.

In March 2014, the then existing 39 LEPs submitted Strategic Economic Plans. In July 2014, the government announced details of funding received by each LEP over the period 2015 – 2021. In January 2015, the government expanded the deals, with LEPs awarded a further £1 billion in total between 2016 and 2021.

The 2016 Budget included the announcement that up to £1.8 billion will be allocated through a further round of growth deals in the course of 2016.

The 2016 Autumn Statement stated the government would award a third round of growth deal funding, worth £1.8 billion. Of this, £556 million will be awarded to LEPs in the North of England, £392 million to LEPs in the midlands, £151 million to LEPs in the east of England, £492 million to LEPs in London and the south east and £191 million to LEPs in the south west. In total, £9.1 billion worth of growth deal funding was allocated to LEPs.

Initially growth deals, like Local Enterprise Partnerships, covered England only. Since 2017, deals have been initiated or agreed with areas in Scotland, Wales and Northern Ireland – six in Scotland, two in Wales and two in Northern Ireland.

In September 2024, it was reported that the UK government was “pausing” funding committed to Northern Ireland’s two growth deals and the Argyll and Bute deal in Scotland. In a statement on 9 October 2024, Hilary Benn, the Secretary of State for Northern Ireland, indicated “the Chancellor will set out the results of the first phase of the spending review on 30 October”, which will include an update on the status of funding for the Mid South West Northern Ireland and Causeway Coast and Glens growth deals.