Argyll and Bute Council is to step up engagement with both the UK and Scottish Governments following an independent evaluation that highlights the significant benefits delivered by the UK Shared Prosperity Fund (UKSPF) and warns of the impact of the loss of future funding.
The evaluation, undertaken by EKOS Ltd, found that UKSPF funding supported a wide range of projects between 2022 and 2025, helping families, businesses, community organisations and people looking to develop skills and access employment opportunities.
However, the report also identifies a significant funding gap ahead. Following a final transition year allocation of £1.417 million in 2025/26, there is currently no replacement funding identified through UK Government successor programmes for Argyll and Bute over the next three financial years.
The council's Policy and Resources Committee has therefore agreed to support further engagement with both the UK and Scottish Governments, alongside partners including COSLA where appropriate, to highlight the importance of sustained investment in rural and island areas and the potential impact of reduced funding on local communities.
The evaluation found that UKSPF investment delivered tangible benefits across Argyll and Bute, including:
- Support for more than 4,500 families through the Flexible Food and Fuel Fund;
- More than £6 million in financial gains for households experiencing hardship;
- Support for 165 businesses during the first phase of the programme;
- Training, employment and graduate apprenticeship opportunities for young people; and
- Investment in projects that strengthened communities and supported local economic development.
The report notes that revenue funding has played an important role in supporting community-led activity, employability programmes, business growth and workforce development. It also highlights concerns that the loss of future funding could have a disproportionate effect on rural, remote rural and island communities, where delivering services and creating opportunities can be more challenging.
Councillor Jim Lynch, Policy Lead for Economic Development, said: "This evaluation demonstrates the positive difference that UK Shared Prosperity Fund investment has made across Argyll and Bute. The funding has helped families facing financial hardship, supported local businesses, invested in communities and created opportunities for people to develop skills and find employment.
"Our communities have shown what can be achieved when investment is targeted towards local priorities. We want to build on that success and continue creating opportunities for residents, businesses and communities to thrive. We will continue to work constructively with both the UK and Scottish Governments and make a strong case for investment that reflects the needs and opportunities of rural and island communities."
The evaluation concludes that the council's UKSPF programme was successfully delivered despite challenging timescales, exceeding many planned outputs and generating significant social and economic benefits. It also highlights the importance of future funding programmes providing longer-term certainty, local flexibility and funding approaches that reflect the needs of rural and island communities.
