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Regional Funding in England: An Overview

GrantsLast reviewed: 1 April 20257 min

England's regional funding landscape has changed significantly since Brexit. EU structural funds have been replaced by UK domestic programmes, and more funding decision-making has been devolved to combined authorities and metro mayors. Understanding the regional structure is key to finding the right grants and support for your business or organisation.

Key points

  • England has 11 Mayoral Combined Authorities (MCAs) with significant devolved funding and powers.
  • The UK Shared Prosperity Fund replaced EU structural funds with a more locally-driven approach.
  • The Levelling Up Fund and Towns Fund have targeted specific areas for investment.
  • Local Enterprise Partnerships (LEPs) are being absorbed into combined authorities from 2024.
  • The British Business Bank has regional delivery arms and regional funds in all parts of the UK.
  • Scotland, Wales, and Northern Ireland have separate devolved funding structures entirely.

Combined Authorities and Metro Mayors

England has 11 Mayoral Combined Authorities (MCAs) including Greater Manchester, the West Midlands, London, South Yorkshire, West Yorkshire, and others. These bodies have been given significant devolved powers over economic development, transport, housing, and skills, along with funding to deploy through regional programmes.

MCAs run their own business support and grant programmes, often supplementing national programmes with regional priorities. For example, the West Midlands Combined Authority has run investment readiness grants, R&D grants, and green economy grants as distinct regional programmes. Greater Manchester has operated its own business grant schemes through the Greater Manchester Business Growth Hub.

If your business is located within a combined authority area, check the combined authority's website and its business support portal as well as national programmes. Regional programmes often have simpler applications and are less competitive than national ones, making them a good starting point for businesses new to grant funding.

Levelling Up and Place-Based Investment

The government's Levelling Up agenda has directed significant investment towards areas identified as having historically lower productivity, poorer public services, or declining industries. Key programmes include:

  • Levelling Up Fund (LUF) — Capital funding for local infrastructure such as regeneration, transport, cultural, and heritage projects. Delivered through local authorities, with most funding already allocated through three rounds. Some projects are still being delivered.
  • Towns Fund — Targeted investment packages for 101 specific town centres in England, supporting regeneration through Town Deals and Future High Streets Fund. Towns Fund investment plans are now largely agreed and in delivery.
  • Long-Term Plan for Towns — The successor to the Towns Fund, launched in 2023, initially covering 55 towns in England with endowments of £20 million each over ten years. Plans are developed by town boards with local input.

These programmes primarily fund public infrastructure and town centre improvements rather than direct business grants. However, they create opportunities for local businesses involved in construction, supply chains, and economic activity linked to regeneration projects.

Local Growth Hubs

England's 38 Local Growth Hubs act as a single point of contact for business support in each LEP area. They provide free, impartial information and guidance on grants, finance, and support available at national, regional, and local level.

Growth Hubs are particularly valuable for businesses that do not know where to start with finding funding. A conversation with a Growth Hub adviser can quickly identify the most relevant opportunities and help you prioritise where to focus your application efforts. They can also refer you to specialist advisers for R&D funding, export support, or sector-specific programmes.

From 2024, LEPs are being consolidated into combined authorities or county-level structures. Growth Hubs are expected to continue, but under different governance arrangements in some areas. Check your regional Growth Hub's website for current contact details.

Devolved Nations: Separate Funding Structures

Scotland, Wales, and Northern Ireland each have their own devolved funding structures that operate entirely separately from English regional programmes:

  • Scotland — Scottish Enterprise and Highlands and Islands Enterprise (HIE) provide grants, loans, and business development support to Scottish businesses. Business Gateway provides free advice and support for start-ups and small businesses. Scotland receives its UKSPF allocation directly and deploys it through its own programme.
  • Wales — Business Wales is the primary support portal for Welsh businesses, connecting them to grants, loans, and advice. The Development Bank of Wales provides finance including grants and loans. Wales has a separate UKSPF programme managed by the Welsh Government.
  • Northern Ireland — Invest Northern Ireland (Invest NI) is the main business development agency, offering grants and support to manufacturing and tradeable service businesses. Northern Ireland also has unique access arrangements under the Windsor Framework that may affect eligibility for some EU programmes.

Frequently asked questions

If I am in a Mayoral Combined Authority area, should I apply for local or national grants?
Both. Regional grants through combined authority programmes are often less competitive and have simpler applications. National grants such as Innovate UK or the British Business Bank's programmes are available on top of any regional support. Your local Growth Hub can help you identify the best combination of funding for your specific situation.
What replaced LEPs and EU structural funds?
Local Enterprise Partnerships (LEPs) are being absorbed into combined authorities and mayoral structures from 2024. EU structural funds (ERDF and ESF) have been replaced by the UK Shared Prosperity Fund, which is delivered locally by lead local authorities. The UKSPF runs to 2025 in its current form, with successor arrangements subject to government decisions.
Are there any regional grants specifically for rural areas?
Yes. The Rural England Prosperity Fund (a rural top-up to the UKSPF) provides additional funding for rural areas in England. DEFRA also administers grants through its Farming Investment Fund and Countryside Stewardship schemes for agricultural and rural land management. In Scotland, HIE provides specific support for businesses in remote rural areas.
What is UKSPF?
The UK Shared Prosperity Fund (UKSPF) is the UK government's main domestic replacement for EU structural funds (the European Regional Development Fund and European Social Fund) which the UK received before Brexit. Launched in 2022, it provides £2.6 billion over three years to support communities and places, local business, and people and skills. Funding is allocated to lead local authorities, which develop their own local investment plans — so the grants available to businesses and community groups vary significantly by area.
How do devolved nations handle funding differently?
Scotland, Wales, and Northern Ireland each have their own devolved funding structures and do not receive UKSPF funding in the same way as English authorities. Scotland uses Scottish Enterprise, Highlands and Islands Enterprise, and the Scottish Government's own programmes. Wales has Business Wales and the Development Bank of Wales. Northern Ireland is supported by Invest NI and the Department for the Economy. Each devolved nation also has its own grant programmes in areas such as innovation, agriculture, and community development that differ from equivalent English schemes.

What to do next

  1. 1
    Find your local Growth Hub

    Contact your Growth Hub for impartial local funding advice.

  2. 2
    Find your combined authority

    Identify your local authority and regional body.

  3. 3
    Explore UKSPF investment in your area

    Find your area's UKSPF investment plan and funded programmes.

Official bodies and resources

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HM Revenue & Customs

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Disclaimer

This information is for general guidance only and does not constitute legal advice. You should seek qualified legal help if your situation requires it.