Argyll and Bute UK Shared Prosperity Fund Investment Plan, Transition Year 2025/26
Argyll and Bute Council · 20 February 2025
Back to Policy and Resources Committee — 20 February 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 20th FEBRUARY 2025 ARGYLL AND BUTE UK SHARED PROSPERITY FUND INVESTMENT PLAN, TRANSITION YEAR 2025/26 1.0 HEADLINES 1.1 The purpose of this paper is for members of the Policy and Resources Committee to approve the Argyll and Bute UK Shared Prosperity Fund (UKSPF) Transitional Year Investment Plan for 2025/26 (see Appendix A) to deliver the council’s allocation of just over £1.4 million. 1.2 The UKSPF is a successor to the previous EU structural funds. The overarching aim of the UKSPF is to build pride in place and increase life chances across the UK. The UK Government has announced there will be a final, transitional, year of UKSPF funding in financial year 2025/26 at a 40% reduction from previous years (Table 1). A replacement scheme is likely to run from 2026/27 onwards with more information to follow through 2025. 1.3 The original Argyll and Bute Council UKSPF allocations were to support delivery over three financial years, specifically the final four months of 2022-23, all of 2023-24 and 2024-25. 1.4 The interventions outlined in the Argyll and Bute UKSPF Investment Plan are all aligned to three key investment priorities: communities and place; supporting local business; and people and skills, where each priority has predefined interventions, outputs and outcomes. UKSPF interventions are delivered by a mixture of council teams and third sector external delivery partners. The overall portfolio, administration, and compliance of the UKSPF as well as reporting to the UK Government is managed by the UK and External Policy Team, Economic Growth. 1.5 Local authorities were responsible for the development and preparation of the original UKSPF investment plans in conjunction with local partners/stakeholders. The investment plan was approved by the Policy and Resources Committee in August 2022. 1.6 Economic Growth is proposing to use the allocation in the transitional year of the UKSPF (2025/26) to fund additional activity in interventions from the first phase of the UKSPF. These interventions were subject to a competitive scoring process in 2022 and were approved as part of the original investment plan. 1.7 An indicative investment plan is proposed (see Appendix A). As with the original phase of the UKSPF, it is likely that council officers, working with delivery partners and the UK
Page 2
Government, will be able to make amendments and re-allocations as needed to ensure the best use of the funds throughout the year. 1.8 An approved investment plan will allow both council departments and external delivery partners to plan and budget for the next financial year, ensuring efficient spending of the funds and helping organisational resilience. 2.0 RECOMMENDATIONS 2.1 Members are asked to: • Note the content of this report. • Approve Argyll and Bute UKSPF Transitional Year Investment Plan for 2025/26 appended to this report (Appendix A), subject to addressing any amendments/comments from Policy and Resources Committee members. • Endorse that a progress report on the investment plan for 2025/26 will be presented at the Policy and Resources Committee in October 2025. 3.0 DETAIL 3.1 In 2022 the UK Government published the full prospectus of the UKSPF, a successor to the previous EU structural funds. The overarching aim of the UKSPF is to build pride in place and increase life chances across the UK. The Investment Priorities were: • Communities and place; • Supporting local business; and • People and skills. 3.2 The UK Government published individual council allocations of both core UKSPF funding and Multiply (ring-fenced funding for adult numeracy and literacy programmes which is not being continued in the next financial year). The UKSPF is primarily revenue spend but with a minimum capital spend. For the next financial year 2025/26 capital spending makes up a significantly higher proportion than previous years. A summary of the Argyll and Bute allocations are outlined in Table 1 below. 3.3 Annual allocations are received in advance, with underspend to be returned. Funds from this first phase cannot be carried forward into the next financial year 2025/26, meaning that in this financial year there remains significant pressure to deliver as much activity as possible by March 31st 2025. 3.4 The initial investment plan interventions were subject to a robust competitive process, with proposals being scored according to an agreed matrix. Full political approval was granted for the 2022-25 Investment Plan in the summer 2022, and delivery proceeded following approval of the investment plan by the UK Government.
Page 3
Table 1: Argyll and Bute UKSPF Allocation 2022/23 2023/24 2024/25 2025/2026 Extension Total allocation In-year allocations (%) Core UKSPF 12.1% 24.3% 63.6% - Core UKSPF £451,343 £902,686 £2,365,038 £1,474,117 £5,193,184 In-year allocations (%) Multiply 30.2% 34.9% 34.9% - *Multiply £234,698 £270,806 £270,806 - £776,310 Total £686,041 £1,173,492 £2,365,844 £1,474,117 £5,969,494 4% of total: admin fee - fund delivery £27,442 £46,940 £105,434 £58,965 £238,781 In-year allocations (%) capital 10.4% 12.5% 17.9% 28.3% - Capital: minimum spend of total Core UKSPF only, not Multiply £46,940 £112,836 £423,342 £417,980 £1,001,097 Available allocation (exc. admin) 2022/23 2023/24 2024/25 2025/2026 Total allocation Core UKSPF £433,289 £866,579 £2,270,436 £1,415,152 £4,985,456 Multiply £225,310 £259,974 £259,974 £745,258 * Multiply is an adult numeracy programme, which will support people with no or low-level maths skills get back into work The scheme will offer free personal tutoring, digital training, and flexible courses to improve adults’ confidence and numeracy skills. Full details on Multiply can be found here N.B. Figures subject to rounding 3.5 On the 13th of December 2024, the UK Government communicated to Local Authorities that there would be a further year of UKSPF funding, with allocations published online alongside technical guidance. Whilst the UK Government does not require an updated investment plan for next financial year, Economic Growth is proposing a delivery plan to allow for proper financial planning and effective allocation of resources. 3.6 The funding available for 2025/26 is 60% of the funding allocated for 2024/25 (the year which had the largest allocation). Given this significant reduction and the single- year award we are not proposing to create new interventions within the UKSPF. This would require a lengthy open and competitive process and the re-assessment of any new activity against subsidy control legislation. This would create a disproportionate administrative burden on both the council and its external partners, many of whom are third sector organisations who are already under significant pressure. This could also create the potential for delays, with knock-on effects for both projects and partners. 3.7 Economic Growth hopes to deliver a further transition year of activity to interventions funded through the initial investment plan. These have a track record of success and have built momentum and capacity across the main phase of the UKSPF. They have the potential to deliver strong outcomes with few risks to delivery. Economic Growth Officers have worked closely with internal and external delivery partners to allocate
Page 4
UKSPF funds to ensure effective and efficient delivery of interventions outlined in the investment plan for the transition year 2025/26. 3.8 In early January 2025, Economic Growth contacted all delivery partners of the UKSPF asking for proposals for additional activity in the 2025/26 financial year. By liaising with partners and encouraging them to present a minimum viable project, the proposed 2025/26 investment plan (Appendix A) has been created. This plan will utilise the full allocation and based on experience from the initial phase of the UKSPF and should also have enough flexibility to re-allocation of funds if required as activity progresses. 3.9 It has been advised by the UK Government that an updated Memorandum of Understanding, Payment Schedule, and Grant Offer letter will be issued to the council at the beginning of the financial year. It is hoped, subject to advice by Finance, that preparatory work can commence immediately upon approval of the Transition Year Investment Plan by the Policy and Resources committee. This will allow internal and external delivery partners to start delivery of activity as soon as possible in the new financial year. It is proposed to undertake an interim evaluation of the Argyll and Bute UKSPF Investment Plan 2022-25 to inform the council’s approach to any replacement scheme from 2026/27 onwards. A final evaluation of the UKSPF as a whole to include the outcomes and impacts for the interventions outlined in the Argyll and Bute Transition Year Investment Plan for 2025/26 will be presented to Policy and Resources Committee in late 2026. 4.0 CONCLUSION 4.1 The purpose of this paper is for members of the Policy and Resources Committee to approve the Argyll and Bute UK Shared Prosperity Fund (UKSPF) Transition Year Investment Plan 2025/26 (Appendix A). 4.2 The Investment Plan been developed and prepared in conjunction with internal council colleagues and external partners. It is intended to deliver additional activity through interventions from the original investment plan. It has been designed to allow for the delivery of as much additional activity as possible, and support the on-going resilience of the delivery partners, including council teams. 4.3 Approval, subject to any changes or recommendations, will allow relevant council teams and partners to plan for the next financial year and commence preparatory work, subject to advice from Finance and final confirmation of funding by the UK Government. 5.0 IMPLICATIONS 5.1 Policy - This project aligns with the proposals set in the UKSPF full prospectus 5.2 Financial - Argyll and Bute Council has been given an allocation of just over £1.4 million from the UKSPF to be spent by the end of March 2026. This is accompanied by the ability to use up to 4% of the allocation to fund administration support for the
Page 5
delivery of the Argyll and Bute UKSPF Transitional Investment Plan. 5.3 Legal - All appropriate legal implications will be taken into consideration. 5.4 HR - Given the revenue element of the funding, staffing requirements can be built in under activity to deliver the predefined interventions, outputs and outcomes. Staffing resources put in place to administer, monitor and evaluate the overall delivery of the Argyll and Bute UKSPF Investment Plan will continue for a further year. 5.5 Fairer Scotland Duty - The Fairer Scotland Duty, Part 1 of the Equality Act 2010, came into force in April 2018. The duty places a legal responsibility on particular public bodies in Scotland, such as Argyll and Bute Council, to pay due regard to (actively consider) how they can reduce inequalities of outcome, caused by socio- economic disadvantage, when making strategic decisions and how this has been implemented. 5.5.1 Equalities - All activities will comply with all Equal Opportunities/Fairer Scotland Duty policies and obligations. 5.5.2 Socio-economic Duty - All intervention activities will comply with the council’s socio- economic duty. 5.5.3 Islands - Interventions under the UKSPF will be delivered across the Argyll and Bute area, including island communities. 5.6 Climate Change – There are a number of net zero and climate resilience interventions across the proposed investment plan extension. 5.7 Risk – If the Argyll and Bute UKSPF Transitional Investment Plan is not approved for submission in the associated tight timescale, this could make it significantly more difficult for both council departments and external deliver partners to deliver activity in the 2025/26 financial year. 5.8 Customer Service – None. 5.9 The Rights of the Child (UNCRC) - None. Kirsty Flanagan, Executive Director with responsibility for Development and Economic Growth Councillor Math Campbell-Sturgess: Policy Lead for Business Development 6th February 2025 For further information contact: Fergus Murray, Head of Development and Economic Growth Fergus.Murray@argyll-bute.gov.uk
Page 6
Ishabel Bremner, Economic Growth Manager ishabel.bremner@argyll-bute.gov.uk Kevin Grant, Senior Development Officer, UK and External Policy Team, Economic Growth kevin.grant@argyll-bute.gov.uk APPENDICES Appendix A: Argyll and Bute UKSPF Transitional Year Investment Plan (draft)
Page 7
Appendix A: Argyll and Bute UKSPF Transitional Year Investment Plan (draft) Note: Rules within the UKSPF require us to meet a minimum capitalisation threshold of £417,980. We will be permitted to transfer funds from revenue to capital but not vice versa. As a result, we have over- allocated the capital allocation and under-allocated revenue accordingly to ensure that minimum capitalisation thresholds are met and there is sufficient flexibility in the event of a capital underspend. The overall allocation is not over-committed. Intervention Priority Deliverer Total Capital Total Revenue Combined Total Vibrant & Living Places Communities & Place ABC Projects & Regen 100,000 - 100,000 Business Support Local Business ABC Bus Gateway 150,000 50,000 200,000 Work Placement People & Skills ABC Employability - 250,000 250,000 Training People & Skills ABC Employability - 50,000 50,000 Flexible Food Fund Communities & Place ABC Rev & Ben - 122,400 122,400 Community Hubs Communities & Place ABC Com Dev 80,000 80,000 Marketing Posts Communities & Place AICT - 42,000 42,000 Digital Infrastructure Local Business AICT - 12,000 12,000 Robotics Academy Local Business SAMS 116,022 87,000 203,022 Graduate Placement Local Business HIE - 22,000 22,000 Adult Literacy People & Skills LiveArgyll - 102,124 102,124 Wider Achievement People & Skills ABC Education 37,500 37,500 Graduate Aprenticeships Local Business InspirAlba 21,193 21,193 Supported Employment People & Skills InspirAlba - 112,283 112,283 Positive Destinations People & Skills TSI - 60.630 60,630 Total 446,022 969,130 1,415,152.32 Allocation 417,980 997,172.32 1,415,152.32