Voluntary sector groups to give evidence to MPs on new Local Growth Fund uncertainty
The Northern Ireland Affairs Committee holds a session on the uncertainty around the UK Government’s new Local Growth Fund and the impact this is having on organisations in the voluntary and community sector.
A new Local Growth Fund is due to replace the UK Shared Prosperity Fund (UKSPF) after the end of March next year but stakeholders have expressed concern about the lack of clarity over the new fund’s introduction, scope and funding levels.
During the session, MPs will explore with representatives from the Northern Ireland Council for Voluntary Action (NICVA), Action Mental Health and Youth Action NI, the ongoing impact the uncertainty is having on groups supported by UKSPF and what the new Local Growth Fund should look like. The NICVA warned this week that without continued funding 24,000 people could lose what has been described as ‘life-changing support’ and about 650 workers could face redundancy.
Meeting details
With Northern Ireland experiencing some of the highest rates of economic inactivity in the UK, and one of the lowest employment rates for people with disabilities, key projects supported by the UKSPF include those focusing on economic inactivity. The fund has also supported local business projects and innovation and helped local authorities deliver community and green space projects.
During a debate in the NI Assembly on Tuesday, Members said that they have received indications that the fund will be at a similar level to the 2025-26 UKSPF allocation of £45-46 million, but there are reports that 70% of the funding will be allocated to capital which would reduce the resource funding available to the VCS sector. In comparison, UKSPF was 75% resource funding.
The Government has said that more information on the Local Growth Fund for Northern Ireland will be set out soon.