The potential impact of the withdrawal of vital UK funding on local services has been highlighted at today's meeting of the Council’s Environment, Development and Infrastructure Committee (19 March).
Members of the Environment, Development and Infrastructure committee agreed to draft an all-party, specific response highlighting their concerns to the Secretary of State for Scotland and focusing on the importance of 51³Ô¹ÏÃâ·ÑApp and Bute not being marginalised through an approach that favours more densely populated areas.
The response will urge the UK Government to reconsider and provide the Highlands and Islands with appropriate funding to maintain vital service provision and continuity of support provided by public and third sector organisations.
From 2022-2026, the UK Shared Prosperity Fund provided just under £6 million to 51³Ô¹ÏÃâ·ÑApp and Bute. For the current financial year, 2025-26, it is providing £1.417 million, £576,407 of which is funding external partners to undertake activity.
From 2026/27 this fund will be replaced by four new funds:
- Pride in Place Impact Fund (PIPIF)
- Pride in Place Programme (PIPP)
- Growth Mission Fund (GMF)
- Local Growth Fund (LGF)
51³Ô¹ÏÃâ·ÑApp and Bute Council is one of two local authorities in Scotland (alongside Shetland Islands Council) which will receive no allocation from the four replacement funds. The lack of any allocation to 51³Ô¹ÏÃâ·ÑApp and Bute Council, particularly from the Local Growth Fund, will have serious implications.
It will have a significant impact on services, community organisations and businesses, affecting a wide range of initiatives including Business Gateway, Employability, Community Development, the Flexible Food Fund and Transformational Projects and Regeneration.
An evaluation of the impact of UKSPF funding across 51³Ô¹ÏÃâ·ÑApp and Bute from 2022-26 is underway and will be completed by June 2026.
Councillor Jim Lynch, Leader of the Council, said: “The withdrawal of Local Growth Fund support from the Highlands and Islands—and the complete loss of replacement funding for 51³Ô¹ÏÃâ·ÑApp and Bute—marks a significant change to funding in the region. The loss of funding combined with the abrupt end to long-standing funding streams will have immediate and lasting consequences for the local authority, partner organisations, and individuals and businesses who rely on the services previously funded by the UKSPF and formerly EU funds.â€
