Is the UK Shared Prosperity Fund replacement adequate?

A government fund that has been quietly paying for free business advice, small grants, and mentoring programmes closes on 31 March. 

What UKSPF paid for 

The UK Shared Prosperity Fund (UKSPF) has been running since 2022, channelling money through local authorities to fund business support, people and skills across the UK.  

In practice, that meant: 

• Free business support events, start-up programmes and skills provision delivered through local Growth Hubs, with the UKSPF picking up the bill invisibly

• High street grants of up to £5,000 for shopfront improvements, digital upgrades and energy efficiency works, covering up to 70% of project costs  

• Free investment readiness and mentoring programmes for diverse founders, including female, ethnic minority and disabled entrepreneurs, through schemes like Foundervine's Ascend programme and Empower 100

• Match-funded grants for business growth 

Most founders who benefited have no idea it even existed. It was just the free support local councils or Growth Hubs pointed towards, and that was the point. 

Why it matters that it's ending 

The organisations that delivered these programmes are already shedding staff. Môn CF, a charity on Anglesey that supports people into employment, put 17 jobs at risk and has seen seven redundancies since its UKSPF funding, which made up 22% of its £5.24 million annual income, was not renewed. It is using reserves to bridge the gap.  

That's one organisation. The same is happening at business support providers and training organisations across the country. When the staff go, the programmes go with them. 

Simon Cox, director, Northamptonshire Business Network, said: 

“At a moment when businesses are already navigating economic pressures and rapid change, clarity from government is essential.  

“A credible, long-term replacement for UKSPF funding would give companies the confidence to plan ahead, invest locally, and contribute to regional growth. Without that certainty, uncertainty will only deepen, risking stalled projects, delayed investment, and missed opportunities for the communities that depend on thriving local businesses.” 

The good, the bad and the... 

Enterprise Nation adviser and funding expert Nigel Farren said:

“When the UKSPF worked well, it worked genuinely well – and it's important to acknowledge that.  

“The formula-based allocation removed the inherently unfair competitive dynamic of predecessor funds, meaning every local authority received something."

For instance, North Yorkshire alone funded 791 projects, reaching more than 50,000 people, safeguarding or creating 2,000 jobs, and directly supporting more than 1,020 businesses. 

“These are real outcomes. Real businesses supported, real jobs retained, real community spaces restored. The fund's flexibility was its genuine strength."

On the flip side, one of the major shortfalls that Nigel pointed out is the inconsistency across geographies: 

“There was no national portal, no standardised eligibility framework, and no meaningful way for a business to compare what was available across the country.” 

Read about Nigel’s honest and detailed assessment for the UKSPF here 

Another pitfall is the data. Granular national success rate data for the UKSPF as a whole has never been published centrally. Nigel said:

“This is a transparency gap that has drawn its own criticism. What we know is that grant windows were frequently short, oversubscribed and geographically inconsistent.”

Match funding 

Lisa Tennant from Ashbourne in Derbyshire is the founder of two businesses: L.T. Business Management, which provides strategy and systems implementation services, and The Co-working Spot, a community workspace housed in a former vintage clothes shop. 

Both of Lisa's enterprises have benefited significantly from UK Shared Prosperity Fund (UKSPF) grants, which will stop providing funding at the end of this month as the programme transitions to new arrangements. 

For L.T. Business Management, Lisa secured approximately £4,000 in total funding with 80% match funding in 2024, which she used to improve her time portal system, software that allowed her team to track hours when working for clients. She explained, describing how the technology improvements boosted productivity:

"It was all about cost saving and time management."

The Co-working Spot received a larger grant of £10,000 with 50% match funding for its complete renovation. Lisa and her husband transformed the space themselves, purchasing everything from IKEA furniture to a soundproof pod, which had to be installed through the windows of their Grade II listed building because it was too large to get through the doors. 

The UKSPF support proved crucial for The Co-working Spot's viability. Lisa revealed:

"We talked about if we can't get the funding, do we go ahead? Do we not go ahead?"

Without the grant, she admitted they "might have reconsidered doing the shop" entirely.

"Had we not got this funding, we might have had to just max out credit cards to do it."

Adding that the whole point of buying their apartment above the shop was to be mortgage-free, but they "had to put everything into" the business venture. 

While Lisa found the UKSPF process valuable, she highlighted one significant challenge:

"You have to pay upfront, and the whole reason you're going for the grant is because you don't have the money."

Applicants must cover all costs first, then claim back the grant money. Though Lisa said the reimbursement process was relatively quick once invoices were submitted. She said, praising the support provided by Derbyshire Dales District Council throughout the application process:

"The business advisers are brilliant."

For her software improvements, Lisa said:

"I just wouldn't have been able to get that work done on the software. It just wouldn't have happened. So I'd have stayed still." 

What's replacing UKSPF? 

UKSPF is partly being replaced by two funds from April 2026: the Local Growth Fund (LGF) and the Pride in Place Programme.  

The problem is the reach and the money. 

The Local Growth Fund in England is worth over £900 million across four years, allocated between 11 existing Mayoral Strategic Authorities in the North and Midlands, with a GDP per head below the UK average. The fund is aimed at investment in infrastructure, business support and skills development. 

That is roughly £225 million a year. England's UKSPF allocation in its final year was £570 million. The replacement delivers less than half the previous annual spend, to a fraction of the areas previously covered. 

The LGF is also primarily a capital fund, with only limited revenue funding available for the first three years. Capital grants don't pay for the person who sits with you and helps you work through your finances. 

While the Pride in Place Programme focuses on deprived neighbourhoods, not small business support or the county as a whole. It will provide up to £20 million to 339 communities over the next decade. This won’t fill the gap for founders who use Growth Hub advice or local grant schemes. 

What councils have to say 

The LGF automatically excludes areas without a Metro Mayor, including Cornwall, Lancashire and Staffordshire, all of which previously received substantial UKSPF funding.  

Cornwall Council has written directly to the Prime Minister asking whether the government is planning to phase Cornwall out of structural local growth funding entirely.  

A survey carried out by the County Councils Network (CCN) stated that nine in 10 councils were concerned their areas would not receive any money from the Local Growth Fund, and no respondents thought that the government’s Pride in Place programme was an adequate replacement for the UK SPF, warning that it is too “small in scope and funding level”. 

In Wales, organisations like Môn CF still cannot guarantee the continuation of their programmes because individual allocations under the new fund have not been confirmed, making planning extremely difficult and risking disruption to services.  

Wales will receive £547 million through the LGF between 2026 and 2029, around £182 million a year, compared to the £343 million it received through UKSPF in 2024-25 alone.  

Tips for businesses affected by the UKSPF closure 

Funding expert Nigel Farren advises doing the following for businesses that have been receiving UKSPF support – or hoping to:  

• Check your current project deadlines urgently: All activity must take place on or before 30 September 2026, and no UKSPF funding will be provided for activity after that date. If you have an active grant, ensure your project is on track to complete within that window. 

• Exhaust remaining local grant windows: Some local authorities still have underspent allocations to deploy. Check your lead local authority's website immediately. Many windows are closing without fanfare. 

• Understand whether your area qualifies for the Local Growth Fund: If you are based in one of the 11 Mayoral Strategic Authority areas in the North or Midlands, your Combined Authority will be administering Local Growth Fund programmes from April 2026. Contact them to understand what business support schemes will be available. 

• Don't wait for Pride in Place: This is a long-term neighbourhood fund, not a business grant scheme. It will not replace the direct SME grant support that UKSPF provided. 

• Explore alternative funding routes now: Innovate UK (despite its own turbulence), the British Business Bank, sector-specific growth programmes, and your local Growth Hub all remain active channels. If you are in a rural area, watch for any successor to the Rural England Prosperity Fund. 

• Build relationships with your Growth Hub: Growth Hubs – funded through local economic partnerships – often have advanced visibility of incoming funding schemes. They are your best early-warning system for what comes next. 

• Consider private funding: With public grant funding contracting, angel investment, revenue-based finance and even community share offers deserve serious consideration for businesses that have relied on public support to fund growth. 

On a final note, the support was real. It helped real businesses. Whether the replacement reaches you depends largely on where you are. 

People were also interested in:

• What the government's 'levelling up' white paper means for small businesses

• How to find and apply for government grants