Levelling Up Fund and Towns Fund
The Levelling Up Fund (LUF) and Towns Fund were major UK government programmes investing in infrastructure and regeneration projects to address regional economic inequalities. Both programmes have now largely concluded their funding decisions, but understanding how they worked and what successor arrangements exist is important for local authorities, community organisations, and businesses involved in regeneration.
Key points
- The Levelling Up Fund invested over £4 billion in local infrastructure projects across the UK in three rounds.
- The Towns Fund supported 101 towns across England through Town Deals and Future High Streets Fund.
- Both programmes have largely completed their funding rounds — successor arrangements are through the UK Shared Prosperity Fund and local growth deals.
- Projects funded through LUF and Towns Fund are in delivery and must complete by agreed deadlines.
The Levelling Up Fund
The Levelling Up Fund (LUF) was a UK government competitive grant programme providing capital investment for local infrastructure. Three rounds were held between 2021 and 2024, with a total of over £4 billion awarded to projects including transport improvements, town centre regeneration, cultural facilities, and community assets. Local authorities applied on behalf of their areas, with bids assessed against criteria including economic need, quality of the project, and local support.
Round 1 (2021) and Round 2 (2022) focused primarily on transport, town centre, and cultural projects. Round 3 (2024) was the final round, with remaining funds distributed to councils that had been unsuccessful in earlier rounds. The Levelling Up Fund was designed to target places left behind by economic change, using an index of need to prioritise disadvantaged areas.
For businesses and communities in areas that received LUF investment, the funded projects create significant economic opportunities — new facilities, improved public spaces, better transport links — that can attract investment and support local business growth. If your area received LUF funding, your local council will have details of what was funded and when projects will be delivered.
The Towns Fund
The Towns Fund covered two main streams. The Town Deal programme provided up to £25 million to each of 101 selected towns in England to invest in economic infrastructure, skills, culture, and connectivity. Towns were selected by government and worked with local stakeholders to develop Town Investment Plans agreed with the Department for Levelling Up, Housing and Communities.
The Future High Streets Fund (part of the Towns Fund) provided funding to help councils and high streets adapt to changing retail patterns — investing in public space improvements, repurposing vacant buildings, improving access, and supporting independent businesses. Successful areas included many traditional market towns and high streets facing structural retail decline.
Town Deals are now in delivery. If your town received a Town Deal, local business and community organisations may be able to access elements of the funded programme — such as workspace, skills training, or community facilities — as projects are completed. Contact your town deal board or local council for details of funded activity in your area.
Successor Funding and What Comes Next
The UK government's approach to place-based regeneration funding has evolved since the initial LUF and Towns Fund programmes. The key successor mechanisms include:
- UK Shared Prosperity Fund (UKSPF) — Provides ongoing funding for local economic development. While smaller in scale than LUF, UKSPF is administered locally and is the main route for business support and community grants in most areas.
- Long-Term Plan for Towns — The government announced funding for a new cohort of towns (different from the original 101) to develop long-term regeneration plans with greater local control and a 10-year horizon.
- Investment Zones — Designated areas receiving tax reliefs and targeted support to attract investment in specific sectors such as advanced manufacturing, life sciences, and technology.
- Freeports — Areas with simplified customs and tax arrangements designed to attract manufacturing and logistics investment.
Local enterprise partnerships (LEPs) are also being integrated into mayoral combined authorities across England, changing how growth funding is planned and allocated regionally.
Frequently asked questions
Can businesses apply directly to the Levelling Up Fund?
What happened to towns that did not receive a Town Deal?
Is the Levelling Up agenda continuing?
What to do next
- 1Find UKSPF funding in your area
The UK Shared Prosperity Fund is the main successor to EU structural funds and LUF for local investment.
- 2Find your local Growth Hub
Growth Hubs can advise on current local regeneration funding opportunities.
- 3Read about local authority funding
Understand how councils distribute regeneration and business funding in your area.
Official bodies and resources
Companies House
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HM Revenue & Customs
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Citizens Advice
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