What is the policy/strategy/function trying to achieve/do?
The UK Shared Prosperity Fund (UKSPF) has run from April 2022 to March 2026, supporting a range of projects that focus on pride in place and increasing life chances through 3 interventions:
- Communities and place;
- Local business support; and
- People and skills (including Multiply).
When the UKSPF Programme comes to an end some of the activities will be continued through funding from the Local Growth Fund from April 2026. That fund aims to fund regional projects which will drive economic growth through infrastructure investment, business support and skills development. The Local Growth Fund aims to provide targeted funding to boost economic growth and improve living standards, focusing on areas with the lowest Real Disposable Household Income (RHDI).
Both programmes are funded by The UK Government and the allocation to local growth funding was set out to be equivalent in cash terms to the final year of UKSPF. However, the funding has been allocated across 4 funds and the Local Growth Fund itself is a reduction on the level of funding received through the UKSPF, particularly in the level of revenue funding to be made available.
The reduction in funding and change in priorities for its use will impact on the services and activities that have been funded through the UKSPF Programme for the period April 2022 to March 2026. Some projects will receive no funding through the Local Growth Fund and others will receive around 30% of the funding previously available. The Local Growth Fund is only allocated to local authorities for 2026/27 and so this year of funding will be used to minimise the impact of the funding reduction and prepare for no further funding from April 2027.
If this is a budget saving, how will the saving be achieved?
This is not a budget saving, but as the funding from the UK Government is changing/reducing, it will have an impact on service delivery, budgets and staffing.
In 2025/26, North Lanarkshire was allocated £6,034,163 from the UK Shared Prosperity Fund. This was distributed to 17 projects, 16 of which were revenue funded with many staff posts funded from this source.
Revenue funding through the Local Growth Fund in 2026/27 will be around 30% of current level and therefore many services will have to reduce provision or stop altogether - this will also impact on a number of temporary staff contracts that will not be extended and service delivery will have to be reduced.
This is a national change in policy/funding that will take effect from 1 April 2026.
If this policy is subject to the FSD what does it suggest about the impact or potential impact on socio-economic disadvantage?
Low Income
The Local Growth Fund (from April 2026) has been targeted at areas with low levels of disposable household income with regional allocations to the 5 Scottish regions that demonstrate lower RHDI levels. Funding has been allocated to Glasgow City Region and will support activities across the 8 Member authorities including North Lanarkshire.
Area Deprivation
The UKSPF was allocated to all Local Authorities in Scotland from April 2022 to March 2025. In the last year of the programme the allocations were skewed towards areas that had a higher level of area deprivation using SIMD data. North Lanarkshire received a higher allocation of funding due to its higher levels of deprivation. The revenue funding for 2026/27 will be allocated on the same basis - therefore continuing to take into account the higher levels of area deprivation.
Give details of the impact it has on groups and individuals
Age (a particular age or range of ages)
There are projects which support young people with ASN with skills development, volunteering, training and support into employment that will be reduced or stopped.
Women or men, girls or boys
A project supporting female entrepreneurs will receive a lower level of funding in 2026/27.
People defined by their race, colour and nationality, ethnic or national origins
A project supporting entrepreneurs from BAME communities will not be continued at the same level of provision.
Children and families
There are projects that support community organisations and community development activities that provide services for children and families that will stop receiving funding.
Care experienced young people
A project which supports care experienced young people with skills development, volunteering, training and support into employment will be reduced.
Employees – full and part time. Including SES, MAs etc.
There are multiple projects that employ staff both in the Council and in delivery partners. Many of these staff are on temporary contracts that will not be extended or renewed.
Others – Local Businesses
There are multiple projects that provide support for local businesses through advice and funding. This supports business growth and survival.
Other Characteristics and Groups
While there are no projects specifically supporting other characteristics and groups, it is possible to access more generic project provision which will not be continued at the same level going forward.
What actions/measures will be put in place or are planned to mitigate any adverse impact or promote equality?
Age (a particular age or range of ages)
Services for vulnerable young people preparing to leave school will be reduced. Staff will be retained at least for the April to June 2026 period to complete work with those preparing to leave school at the end of the 2025/26 academic year.
Women, men, boys and girls
Funding to support female entrepreneurs is likely to be reduced leading to fewer new start businesses being established. Limited funding is available through the Local Growth Fund and from service budgets in 2026/27. Models are being investigated and piloted to bring about sustainability for The Hive.
People defined by their race, colour and nationality, ethnic or national origins.
Funding to support entrepreneurs from BAME communities is likely to be reduced leading to fewer networking events and training being provided. Enterprises and potential entrepreneurs will be able to access support through Business Gateway and NLC Enterprise Team.
Children and families
The range of activities provided through the Sum It Up programme to develop numeracy skills will be reduced, including services to promote financial inclusion. Staffing will be retained for the April - June period to allow current community based classes to be completed. Thereafter numeracy provision will be integrated where possible into other activities through the CL&D and Tackling Poverty Teams.
Care leavers
Programmes to support vulnerable care leavers leaving school to a positive destination will be reduced due to a reduction in funding available. Staff will be retained at least for the April to June 2026 period to complete work with those preparing to leave school at the end of the 2025/26 academic year. Some limited Local Growth Funds will be available to continue staff support and develop exit strategies for individuals and the programme of intervention.
Employees – full and part time. Including SES, MAs etc
35 (27.1 FTE) staff posts have been funded through the 2025/26 UKSPF programme. Many of these are on temporary contracts which come to an end on 31 March 2026. Staff will be retained for those activities that can be funded through the Local Growth Fund to end March 2027. Remaining staff will have contracts extended to 30 June 2026 and where applicable will then return to substantive posts. For staff without substantive posts a redeployment exercise will be put in place and further contract extensions provided where practical.
Other Characteristics and Groups
Generic employability and skills programmes will still be able to other characteristics and groups.
Measures to manage the transition from UKSPF funding to the new Local Growth Fund have been put in place as far as possible as noted above. Project activity will be continued through other funding programmes where it meets the criteria for that programme and exit strategies for remaining activities have been developed in collaboration with Services.
The impact of the reduction in funding has been managed with mitigating actions taken where practical.
The funding that has been available for the period from April 2022 to March 2026 has led to increase capacity within communities and to an increase in the level of skills and knowledge for those who have accessed supported services. This leaves a legacy from the funding and a lasting impact in many individuals.
What is the result/recommendations of the EqIA?
Introduce the policy with justification regarding potential adverse impact. Change in funding programme is outwith NLC control so introduce with mitigating actions as set out.