Local communities will soon have direct control over where government funding is allocated, as ministers unveil a £1.5 billion scheme aimed at revitalising deprived neighbourhoods across the UK. The initiative, part of the government’s broader regeneration strategy, promises to empower local people in making financial decisions that impact their communities.
Empowering local neighbourhoods
From April 2025, funds will be made available to 75 selected areas, with each receiving up to £20 million. These funds can be invested in projects such as youth clubs, cultural venues, and essential community services like healthcare and education. By 2026, projects are expected to be operational, bringing tangible improvements to local areas.
The scheme builds upon the long-term plan for towns introduced under Rishi Sunak’s government, which similarly pledged funding for various regions across Britain and Northern Ireland. However, this new initiative, known as the Plan for Neighbourhoods, differs by placing decision-making power directly in the hands of local residents.
Decision-making at the community level
A key feature of the programme is the establishment of local boards in each funded area. These boards, composed of residents, business representatives, and community campaigners, will be responsible for determining how the money is spent. Options will include infrastructure improvements such as pavement repairs and public safety measures like neighbourhood watch schemes.
Areas selected to receive funding span the UK, including Coleraine in Northern Ireland, Kilmarnock in Scotland, and Wrexham in Wales. In England, Darlington, Scarborough, and Great Yarmouth are among the towns set to benefit.
Government’s vision for local investment
Angela Rayner, Deputy Prime Minister and Secretary of State for Local Government, emphasised the importance of community-led decision-making:
“For years, too many neighbourhoods have been starved of investment, despite their potential to thrive and grow. Communities across the UK have so much to offer – rich cultural capital, unique heritage but most of all, an understanding of their own neighbourhood.”
She further highlighted that the Plan for Neighbourhoods represents a shift in approach, stating:
“We will do things differently. Our fully funded plan puts local people in the driving seat of their potential, having control of where Whitehall cash goes – what issues they want to tackle, where they want to regenerate, and what growth they want to turbocharge.”
Local Growth Minister Alex Norris echoed these sentiments, underlining the economic benefits:
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“When our local neighbourhoods thrive, the rest of the country thrives too. That’s why we are empowering communities to take control of their futures and create the regeneration and growth they want to see.”
Political criticism and debate
The funding announcement has not been without controversy. The Conservative Party has criticised the initiative, arguing that it represents misallocation of taxpayer money. Shadow Housing Secretary Kevin Hollinrake voiced concerns over its impact on local finances:
“Local areas are feeling increased pressure due to immigration, increased council tax, and Labour changing the local government finance settlement to benefit urban areas over rural areas.”
He further accused the Labour government of abandoning previous commitments to levelling up, stating:
“Labour erased the phrase ‘levelling up’ from government, and instead of delivering for local communities, they are now spending taxpayer cash on wasteful pet projects this country can’t afford.”
What happens next?
With funds set to be distributed from April 2025, local communities now face the task of forming boards and deciding on project priorities. If successful, the Plan for Neighbourhoods could represent a fundamental shift in how government funding is distributed, giving residents more direct influence over their local areas.
While the initiative has received both praise and criticism, its impact will only become clear as projects are implemented in the coming years.
