Five regions across Scotland are set to share £140 million in new UK Government investment aimed at boosting economic growth, creating skilled jobs and raising living standards.
Launched on Thursday by Scottish Secretary Douglas Alexander, the Local Growth Fund (LGF) will deliver targeted funding over the next three years, from 2026/27 to 2028/29, focusing on regions with the lowest levels of real disposable household income.
The largest share of funding will go to the Glasgow City Region, which will receive £60.9 million. Edinburgh and South East Scotland will receive £37.8 million, followed by Tay Cities with £19.5 million. Ayrshire has been allocated £11.8 million, while the Forth Valley Region will receive £9.8 million.
The fund is designed to give local leaders greater control over how investment is used, supporting projects such as infrastructure upgrades, business growth initiatives and skills development programmes. These investments are expected to drive long-term economic prosperity and support higher-quality employment across Scotland.
Douglas Alexander said the funding underlines the UK Government’s commitment to regional growth.
“The UK Government is backing Scotland’s regional economies with £140 million of new investment,” he said. “This funding will empower local leaders to decide what works best for their areas, whether that is improving infrastructure, supporting businesses or investing in skills. We will work closely with regional partners to develop tailored investment plans that deliver real benefits for communities.”
He added that the investment forms part of a wider UK Government strategy focused on improving living standards, reducing child poverty and strengthening public services.
Funding has been allocated through Regional Economic Partnerships (REPs), which bring together local authorities, businesses, education providers and the third sector to drive economic development. Allocations were calculated in proportion to population size across the five eligible regions.
Further details on delivery arrangements and investment priorities for the Local Growth Fund will be published later in the first quarter of 2026, subject to full business case approval by the Ministry of Housing, Communities and Local Government and HM Treasury.
The LGF is part of a broader £2 billion UK Government investment programme supporting local and regional development across Scotland. This includes funding for Pride in Place programmes, investment zones, freeports, community regeneration partnerships and city region growth deals extending to 2035. Photo by Daniel from Glasgow, United Kingdom, Wikimedia commons.