UK Shared Prosperity Fund 2025-26

Introduction

The UK Shared Prosperity Fund (UKSPF) is a central pillar of the UK Government’s Levelling Up agenda. The fund provides £2.6 billion of new funding for local investment by March 2025. All UK areas will receive an allocation via a funding formula rather than a competition.

The fund will replace some parts of European Structural and Investment Funds. It will invest in local priorities and target funding where there is evidence of need including:

• Building pride and place
• Supporting high quality skills and training
• Supporting pay, employment and productivity growth
• Increasing life chances 

Funding available to Neath Port Talbot

Neath Port Talbot's funding allocation is £27.3 million over 3 years, from April 2022 to March 2025.

The Fund is a mix of revenue and capital funding and has been ‘unlocked’ via a Regional Investment Plan. The Investment Plan was approved by the UK Government in December 2022.

In addition to this core UKSPF funding, there is funding specific to ‘Multiply’ which is currently focused on adult numeracy.

What to use funding for

There are 3 UKSPF Investment Priorities:

• Community and Place
  • Strengthening our social fabric
  • Community infrastructure 
  • Local green spaces
  • Community-led projects
  • Building resilient, safe and healthy neighbourhoods

• Supporting local business
  • Creating jobs and boosting community cohesion;
  • Promoting networking and collaboration
  • Increasing private sector investment in growth-enhancing activities

• People and Skills 
  • Boosting core skills and support adults to progress in work
  • Reducing levels of economic inactivity through investment in bespoke intensive life and employment support
  • Supporting people furthest from the labour market to overcome barriers
  • Supporting local areas to fund gaps in local skills provision to support people to progress in work, and supplement local adult skills provision.

There are a number of pre-approved ‘interventions’ linked to each of the three priorities and projects will need to be developed in line with these flexible interventions. 

Multiply in Neath Port Talbot

Successful projects

Outputs and outcomes

There are specific outputs and outcomes which need to be delivered by UKSPF projects and these outputs and outcomes will be monitored and reported.

How funding will be delivered

To ensure an evidence based, targeted approach to delivering the UKSPF the following implementation approach will be adopted.

All UKSPF funded projects need to address the challenges and opportunities are outlined in the South West Wales Regional Investment Plan.

UKSPF will be delivered through:

Anchor Projects

These are themed projects managed by anchor teams that address the challenges and opportunities in the Investment Plan and deliver major parts of the Investment Plan.

The approved anchor projects for Neath Port Talbot are:

To ensure a strategic approach to delivery with a smooth transition and delivery at pace to commence from 1st April 2025, Neath Port Talbot Council is aligned to the South West Wales  regional strategic approach with local determination and delivery.

Delivery is based on a strategic Anchor Project approach with five Council led Anchor projects to deliver key priorities for our area:

• Community
• Place
• Business
• Employability
• Skills

The Community, Place and Business Anchor Projects will include Third Party Grant Schemes to award funding to public, private, community and third sector organisations.

The Business Prosperity Fund will be open to receive applications from April 2025 and will offer capital and revenue funding for projects via the following two strands:

1. Business Investment Grant.
2. Local Business Priority Fund.

Total Fund for both strands - £1,250,000

Strand 1 – Business Investment Grant/Start-up Grant

• Min grant award: £500.00
• Max grant award: £10,000

Strand 2 - Local Business Priority Fund

• Min grant award: £25,000
• Max grant award: £100,000

Aim of the Fund

To support start-ups, existing businesses and potential inward investors to deliver projects and investments that contribute to the following Council’s priorities:

• Business growth and development by attracting new customers, introducing new products/services, diversifying operations by expanding into new geographic markets or sectors, etc
• Commercial Property improvement to encourage property owners and occupiers to improve the quality and quantity of commercial premises
• Improved operational efficiency and productivity of businesses, i.e. Introducing new software or apps, investing in a website, purchasing new machinery and equipment, etc
• Job creation and safeguarding through project investment in business operations
• Encourage Innovation through supporting businesses in the Research, Development and Innovation sector
• Diversification of the local economy by supporting businesses to move into new markets
• Development of local supply chains by encouraging businesses to explore local supplier options
• Local Business Priority Fund - aimed at supporting projects and investments that contribute to the Council’s priorities for economic growth. Projects requiring higher level of funding. 

Level of Grant

Strand 1 - Business Investment Grant/Start-up Grant

• Grants of between £500 and £10,000 are available.

Strand 2 - Local Business Priority Fund

• Grants of between £25,000 and £100,000 are available.

There is a limited allocation of grant funding, which will be awarded on a competitive basis

The level of grant awarded is calculated on the basis of the following:

1. Percentage of the eligible costs (net of VAT), and
2. The number of jobs created and/or safeguarded by the project as follows:

• £5,000 per full-time @ 30+ hours per week
• £2,500 per part-time job of 16-29 hours per week

Eligible Costs

The following capital items can be supported by the grant:

• Plant, machinery and equipment that increase capacity, productivity, reduce energy consumption, etc
• Measures directly supporting innovation such as test bed or demonstration innovations; laboratory and testing facilities; development of ideas for new or improved products, processes and services; accessing information and expertise on new materials, etc
• IT infrastructure and hardware that supports the adoption of new technologies in the business, improves operational efficiency and processes, supports changes in working patterns, etc
• Works to premises to increase capacity, support diversification, or measures that reduce energy consumption

NB: Some capital items such as mobile equipment, office furniture, vehicles, etc., are not eligible.

The following revenue costs can be supported by the grant:

• Integration of IT systems to support improvements in operational efficiency and processes
• Changes in working practices to improve efficiencies
• Development of marketing and e-marketing strategies to align with changes in customer buying behaviour, targeting new customer markets or attract new customers
• Feasibility studies to assess development opportunities.
  Software that enables the business to improve efficiency, increase capacity, manage stock, integrate business processes, or manage new ways of working
• Audit and registration fees for accreditations supporting business growth, improved operational processes, diversification into new sectors, etc
• Product certification and testing
• Staff training that enhances skills, workforce flexibility, etc

Eligible Organisations

Commercial businesses including social enterprises.

Application Deadline

For more information, please visit Local Business Priority Fund 2.

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