Agenda item

The report provides an update on the UKSPF Rural England Prosperity Fund. It outlines the investment into South Kesteven’s communities and highlights the approach for the rest of 2024/25 until the programmes closure on 31^st March 2025. 

The Cabinet Member for Governance and Licensing presented the report.

The UK Shared Prosperity Fund (UKSPF) was a central pillar of the UK government’s Levelling Up agenda and has provided £2.6 billion of funding for local investment between April 2022 and March 2025. It aimed to improve pride in place and increase life chances across the UK by investing in communities and place, supporting local business, and people and skills. The UKSPF replaces the European Regional Development Fund and European Social Fund, with all areas of the UK receiving an allocation.

The Rural England Prosperity Fund (REPF) was a top-up to the UKSPF and succeeds EU funding from LEADER and the Growth Programme which were part of the Rural Development Programme for England. The REPF supports capital projects for small businesses and community infrastructure. The programme seeks to improve productivity and strengthen the rural economy and rural communities. It is complementary to funding used to support rural areas under the UKSPF, with the funding period running from April 2023 to March 2025. Lead local authorities, such as South Kesteven District Council (SKDC) have flexibility over how they deliver the UKSPF and REPF.

In respect to the REPF South Kesteven had been awarded a total of £540,460 in funding for projects which would have to be delivered by the end of the programme, March 31st 2025.

• Year 2: £135,115 was awarded in the financial year 2023 / 2024

• Year 3: £405,345 was awarded in the financial year 2024/ 2025

The Year 2 allocation within the REPF (1st April 2023 – 31st March 2024) was as follows:

• Supporting Rural Business

- Intervention 1.1 - £60,115 (capital grant funding for small scale investment in micro & small enterprises in rural area.)

- Intervention 1.3 - £25,000 (capital grant funding for developing and promoting the visitor economy)

• Supporting Rural Communities

-Intervention 2.4 - £50,000 (capital grant funding for existing cultural, historic and heritage institutions that make up the

- local cultural heritage offers)

The Year 3 allocation within the REPF (1st April 2024 – 31st March 2025) was as follows:

• Supporting Rural Business

-       Intervention 1.1 - £180,345 (capital grant funding for small scale investment in micro & small enterprises in rural area.)

-       Intervention 1.3 - £75,000 (capital grant funding for developing and promoting the visitor economy)

• Supporting Rural Communities

-       Intervention 2.1 - £100,000 (capital grant funding for investment and support for digital infrastructure for local community facilities.)

-       Intervention 2.4 - £50,000 (capital grant funding for existing cultural, historic and heritage institutions that make up the local cultural heritage offer)

To date the UKSPF Board has recommended three applications for approval, totalling £110,301.66. A further have been deferred to return to the July 2024 board for reconsideration, totalling £140,000.

The REPF programme has nine months left to run. If the fund was not spent then it will likely have to be returned to the Government. The recommendations were therefore focused on making every effort to distribute the funding to high quality projects which achieve valuable and value for money outputs in in the Council’s rural communities.

One Member queried when the deadline for Parish Council bids were.

The UKSPF meeting in July 2024 had applications that were already in production. The following meeting would be held in September 2024, where new projects would be discussed. Parish Council’s were encouraged to contact the Council for guidance on the process of bid applications.

That the Committee:

1. Notes the progress made with the UK Shared Prosperity – Rural England Prosperity Fund and the supports opportunities identified to expedite the distribution of the funding.