Item 7 - UK Shared Prosperity Fund Update
West Dunbartonshire Council · 5 February 2025
Back to Infrastructure, Regeneration & Economic Development Committee — 5 February 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer – Roads and Neighbourhood Infrastructure, Regeneration and Economic Development 5 February 2025 Subject: UK Shared Prosperity Fund 1. Purpose 1.1 To provide an update on the UK Shared Prosperity Fund (UKSPF) project and outline a proposed approach to the continuation of the activities. 2. Recommendations 2.1 It is recommended that Committee approves the: a) recommended approach to continuity of service provision for the one-year extension of the UKSPF outlined in Section 5 of the report. b) recommended approach to the allocation of funds outlined in Table 2 of the report. 3. Background 3.1 UKSPF is the UK Government’s main funding to replace European Union (EU) Structural Funds. The fund prospectus outlined three core investment priorities to guide the development of funded activities. These principles are: Communities and Place - to enable places to invest to restore their community spaces and relationships and create the foundations for economic development and build resilient and safe neighbourhoods. Supporting Local Business – to enable places to fund interventions that support local businesses to thrive, innovate and grow. People and Skills – to reduce barriers to employment and support; reduce levels of economic inactivity; and provide skills development through a wider range of routes. 3.2 The funding award included the condition that 17% of the total budget should be allocated to a capital project. In addition, a portion of funds were ring-fenced for the delivery of ‘Multiply’ activities, improving access to numeracy skills. 3.3 The Council was encouraged to collaborate with neighbouring authorities to develop regional investment plans. As such, the Council worked in partnership with Glasgow City Region Partners to submit a regional proposal. 3.4 As a result, the Council received an allocation of £3,895,815 for the three-year duration of the programme (April 2022 – March 2025). ITEM 7
Page 2
3.5 The Council identified a mix of proposals consistent with the outputs and outcomes set out by the UKSPF guideline which is built on existing commitments previously funded by European Structural Funds. In addition, the Council, through consultation with stakeholders, identified eligible activities within the policy areas aligned to UK Shared prosperity priorities. (Community Empowerment and Development; Business Support; Employability and Skills; Community Learning/Numeracy) 3.6 The following actions and associated budgets were developed for the three-year period. Table 1: UK Shared Prosperity Investment Priorities 2023- 2025 Principle priority Budget (000’s) Consisting of Actions Community and Place 944 Shopfront and Small Business Improvement Grants. Pride in Place – Supporting Community Gardens 4 sites. Capital Project - Improvement and upgrade of CCTV Infrastructure. Community Pantry Network; Community Consultation. Business Support (ERDF/ESF replacement) 500 Grant based initiatives for: Enhancing West Dunbartonshire’s Tourism Events & Attractions. Business Recovery & Growth. Towards Net Zero. Expert Help for Businesses. Early-Stage Growth. People and Skills (ESF replacement) 1,729 Employment support for economically inactive people. All age employability case management support. Competitive grant fund for specialist employability support and local skills needs. Personal development and employability support targeting young people. Multiply (Adult numeracy) 673 Courses designed to increase confidence with numbers. Courses for parents to increase numeracy skills. Intensive and flexible courses targeted at those without Level 5 maths. Courses designed to help people use numeracy to manage money. Management (4%) 44 Requirement to act as lead agency, develop partnership approaches and report on progress. Total 3,890
Page 3
4. Main Issues 4.1 2024/25 is the final year of the UKSPF programme and the projects in West Dunbartonshire are proceeding as planned. It is anticipated funding will be fully utilised and the outputs and outcomes identified in the Council’s regional investment plan will be achieved by the programme end date in March 2025. 4.2 There has been considerable uncertainty about continuation of UKSPF funding. Early indications are that the UK Government will conduct a spending and programme review to determine future priorities and associated levels of funding. In the meantime, the UK Government is providing transition funding for one year. 4.3 The additional single year funding is part of a funding package of £29.4m for Glasgow City Region. The Council’s allocation is £1.695m. This comes with conditions: The current programme (not the extra year funding) ends in March 2025 and all expenditure and activity must be complete by then. There will be no carry-forward of funds from the current programme. Ring-fenced funding for Multiply will not be available. Continued funding will be based on current year-three levels with a reduction of 25%. Irrespective of the funds made available, 26% of the funds must be committed to capital projects, approximately £0.440m. 4% of the funds (circa £0.068m) can be used for management costs. 5. Options Appraisal 5.1 Given the reduction in funding, the Council is proposing an approach that is broadly consistent with the current service provision. 5.2 The recommendation, therefore, is to support a transition to the interim 2025/26 phase and continue the existing services, where possible. This will allow the Council to maintain continuity of services while avoiding the negative consequences of potential staff displacement and service disruption or withdrawal. 2025/26 UKSPF in West Dunbartonshire 5.3 In West Dunbartonshire, the Service developed interventions in all three investment priority areas and adopted a sequential approach for identifying the appropriate mix of priorities. 5.4 This sequential approach rested on a review of activity previously funded by European Structural Funds that UKSPF was established to replace. We complemented this with support for eligible community- based activity with an emphasis on meeting the required capital spend
Page 4
requirements. 5.5 In the current UKSPF programme, 4% of the funds were allocated as management costs, the remainder of the funds were proportionally allocated to the fund principle priorities. 5.6 The Service proposes to maintain this focus, with broadly similar levels of investment in each of the priority areas, during the interim year (2025/26). However, the Service will take into account the requirement to increase the capital allocation to 26% and will incorporate some of the multiply activity into people and Skills. Table 2: UK Shared Prosperity Priorities Interim Year 2025/26 Priority Funding £ (%age) Indicative Activity Community and Place £440,000 (approx. 26%) Capital Projects identified in the context of West Dunbartonshire’s Strategic Framework for Physical Activity and Sport. Business Support £190,000 (11%) Business Recovery & Growth Grant. Early-Stage Growth Grants. Expert Help for Businesses. Towards Net Zero Grant People and Skills Incorporating literacy/Numeracy developed because of ‘Multiply.’ £1m (59%) Employment support for economically inactive people. Employability programmes and advice. Local areas to fund local skills need grant fund. Vulnerable young people. Courses designed to increase confidence with literacy/numeracy. 5.7 The exact mix of funding will be established in greater detail as the associated projects are developed. 5.8 This approach prioritises the following: Existing activity with an emphasis on support services directly delivered by WDC Staff, while incorporating some eligible ‘Multiply’
Page 5
activity. Continuing with the employability service and business support grants that have been established. Exploring the potential for additional community-based capital projects outlined as priorities within West Dunbartonshire plans that are eligible for UKSPF support. 5.9 In addition to maintaining services, the approach will also allow the Council to maintain its partnership approach. This will be done by using the funds to secure external input from the third and private sector through grants for business, support from specialist training/learning providers and a capital project. 6. People Implications 6.1 The UK Shared Prosperity Fund has replaced European Structural Funds and this has allowed the Council to maintain the delivery of employability services, business support services and community development activity. 6.2 The funds are used to employ approximately 20 people in West Dunbartonshire Council; the majority of whom work within Working4U, with a further member of staff within Working4Business. 6.3 Without this funding these posts will be subject to displacement and potentially lost. These potential losses include the following staff: Working4U employability support advisers. Working4U community learning staff and tutors. Working4Business business development staff. 7. Financial and Procurement Implications 7.1 The Council has been awarded, and will use, £1.695million of UK Shared Prosperity investment for the programme delivery in the interim year 2025/26. The current funding has a planned end date of March 2025. Without this investment the services and support developed will not continue. 7.2 The proposed UK shared prosperity activity includes a mix of procured services and grant funded opportunities that will assist us to progress towards our goals. This provides investment for local business and third sector organisations. The proposed procurement and grant supports are: Procurement of eligible capital project. Grant awards – o Business development grants Business Recovery & Growth. Towards Net Zero. Expert Help for Businesses. Early-Stage Growth. o Specialist employability support service grants.
Page 6
8. Risk Analysis 8.1 Risk management is an ongoing process that is considered by the lead officers developing the West Dunbartonshire plans for potential UKSPF projects. These risks are associated with the potential funding outcomes that emerge in the medium term. 8.2 UKSPF ends in March 2026 after the interim funding with no plans for further funding available. This will bring an end to business and employability support services that rely on the funds and could potentially lead to displacement among Council staff delivering the services. It will also bring an end to business support grants that have encouraged growth, development and job creation. UKSPF is also used to engage community-based and third sector specialist employability provision. Reduction of these external organisations’ services will reduce the availability of support services and their contribution to the Council’s strategic objectives. 8.3 Council officers are in regular discussions with Government officials about continuity of UKSP Funds. Should these discussions prove to be unsuccessful and there is no further funding from this source, the Council has a full set of HR policies relating to staff terms and conditions and processes for dealing with the loss of funding. We will begin to implement the appropriate course of action three months in advance of the fund closing in March 2026. 9. Equalities Impact Assessment (EIA) 9.1 An equalities screening will be undertaken as the plans and consequences become clear. 10. Strategic Assessment 10.1 The delivery of activity funded through UKSPF support the successful delivery of the strategic priorities and objectives of the Council, in particular: Our Economy – Strong and Flourishing. Chief Officer Gail Macfarlane Service Area Roads and Neighbourhood Date: 05 February 2025 Person to Contact: Stephen Brooks Stephen.brooks@ west-dunbarton.gov.uk Appendices: None Background Papers: N/a Wards Affected: All Council wards.