The North Yorkshire Council
Executive
17 June 2025
UK Shared Prosperity Fund and Rural England Prosperity Fund 2025/26
Report of the Corporate Director Community Development
1.0 PURPOSE OF REPORT
1.1 To outline proposals for the use and delivery of UK Shared Prosperity Fund (UKSPF) and Rural England Prosperity Funds (REPF) allocated to York and North Yorkshire in the 2025/26 financial year.
1.2 To recommend that the Executive authorises the acceptance of funds from the YNY CA of up to a maximum of £5.5m to be used for Council projects and delivery of community and business programmes and grant funds.
1.3 To allow delegated authority to agree and enter into any associated agreements including but not limited to a Service Level Agreement with the YNYCA to access and deliver these funds to the Corporate Director of Resources in consultation with the Assistant Chief Executive Legal and Democratic Services and the Executive Member for Open to Business.
2.0 SUMMARY
2.1 This report seeks approval to accept funding of up to £5.5m from the YNY CA for the purposes of delivering part of the UKSPF and REPF in North Yorkshire. This activity comprises the delivery of grant programmes for businesses and communities, programmes relating to developing the visitor economy and community wealth building and capital investment in Council projects.
2.2 The funding is for the current financial year only and is a mixture of capital and revenue.
2.3 Grant funds and programmes will be delivered by the Council across York and North Yorkshire with full cost recovery for the Council.
2.4 Acceptance of the funds will be subject to an appropriate legal agreement which will specify how the funding is used and how the Council will report activity to the YNYCA.
3.0 BACKGROUND
3.1 The UK Shared Prosperity Fund (UKSPF) and Rural England Prosperity Funds (REPF) were created by the Government in 2022 in order to replace the European Union Strategic Investment Funds. Funding was awarded directly to Local Authorities and Combined Authorities in England as an allocation, ie. without competitive bidding. Pending local government reorganisation North Yorkshire County Council (NYCC) was identified as the lead authority for North Yorkshire and was awarded £16.9m of UKSPF and £5.8m of REPF over the financial years 2022-2025.
3.2 Following its election in 2024 the new Government has awarded 1 year of interim UKSPF and REPF funds to local authorities prior to developing a new programme from 2026 onwards. In this financial year the YNY CA has been identified as the lead authority for accountable body for these funds.
3.3 In order to deliver its funding allocation, the YNY CA has proposed passporting some of the funding to City of York (CYC) and North Yorkshire Councils for delivery in this financial year. This report details proposals for income to be paid to The North Yorkshire Council (NYC), identifies projects for which it can be used and seeks approval from the Council’s Executive to accept the funds.
4.0 USE OF UKSPF AND REPF FUNDING 2025/26
4.1 The YNY CA has been awarded UKSPF and REPF for the 2025/26 financial year as follows:
|
|
Capital £ |
Revenue £ |
Total £ |
|
UKSPF |
2,914,393 |
5,868,506 |
8,782,899 |
|
REPF |
1,748,017 |
|
1,748,017 |
|
|
4,662,410 |
5,868,506 |
10,530,916 |
4.2 The primary goal of the UKSPF is to build pride in place and increase life chances across the UK. The conditions of this funding are broadly similar to those of the previous UKSPF/REPF programme. Key points to note are:
· Capital allocations must be applied as a minimum and cannot be converted into revenue.
· The Combined Authority is not required to produce another Investment Plan and can use those previously submitted by NYCC and CYC as the basis for its programme.
· The programme ends on the 31 March 2026 and no activity taking place after this date will be eligible for funding.
· Funding is provided at 100% intervention rate – there is no match funding requirement on the part of either the Combined Authority or its constituent authorities.
· REPF is not applicable to Harrogate, Knaresborough or Scarborough, and is a capital only programme.
· Multiply (Adult numeracy and literacy programme) is included in this programme whereas previously it was funded separately.
4.3 On 7 March 2025 the Executive of the YNY CA approved proposals to utilise the UKSPF funding awarded to York and North Yorkshire. These proposals set the framework for the delivery and allocations of the funding by theme and intervention. The YNY CA has subsequently identified those elements of this programme which might most effectively be delivered by The North Yorkshire Council. This is part based on the success of the delivery of UKSPF and REPF by The North Yorkshire Council during the previous three years.
4.4 The YNY CA has proposed providing approximately £5.2m of UKSPF / REPF for The North Yorkshire Council to deliver programmes and projects in 2025/26 under the following headings:
|
Theme |
Programme |
Service |
£ |
|
Communities and Place |
VCSE Infrastructure Support |
Localities |
570,000 |
|
Community Wealth Building Programme |
300,000 |
||
|
Digital Inclusion grants programme |
485,000 |
||
|
Supporting Local Business |
Developing Tourism and the Local Visitor Economy Partnership |
Tourism |
100,000 |
|
Business Sustainability Programme |
Environment |
1,584,393 |
|
|
People and Skills |
Tourism Training Programme |
Tourism |
50,000 |
|
Multiply – adult numeracy and literacy programme |
Adult Learning |
300,000 |
|
|
REPF – Communities and Place |
Village Halls Grants |
Localities |
1,100,000 |
|
Capital Investment in local infrastructure |
Various |
648,017 |
|
|
Management & Administration |
Management costs |
|
40,000 |
|
|
Total |
|
5,177,410 |
4.5 These allocations reflect the priorities of the Combined Authority and are derived from the overall submission the YNY CA has made to Government for the full £10.5m. Programmes reflect the fact that this financial year is an interim year, following on from the previous programme which bridges the period between this and the anticipated Consolidated Funding Settlement expected to be awarded to Combined Authorities from 2026 onwards.
4.6 Grant programmes, including Digital Inclusion, Village Halls Grants, Business Sustainability, as well as development of the Local Visitor Economy Partnership and training for visitor economy businesses, will be administered by NYC across the whole of York and North Yorkshire. The costs of delivery are built into the programme and representatives of CYC will support the evaluation so that no NYC resources are used to fund activity in the City of York. Agreement is being sought from CYC to deliver grants within that local authority boundary. This work will be supported by CYC colleagues.
4.7 Included in the overall allocation of funds is a sum of £968,017 to be used for The North Yorkshire Council capital projects which benefit local places and communities. This funding is made up of £648,017 from REPF, Capital Investment in Local Infrastructure, and £320,000 UKSPF funding from VCSE Infrastructure Support. These projects have been identified on the basis of their strategic fit with The North Yorkshire Council capital priorities and deliverability within the current financial year.
4.8 A more detailed and complete list of projects is included as Appendix A.
5.0 CONTRIBUTION TO COUNCIL PRIORITIES
5.1 The projects identified for delivery through the use of the UKSPF and REPF will contribute to the following Council priorities:
· Thriving and Empowered Communities – through delivery of community grants, support for tourism and community wealth building.
· Sustainable and Connected Places – through support for businesses to reduce carbon emissions, the provision of digital inclusion grants and improved local facilities.
6.0 ALTERNATIVE OPTIONS CONSIDERED
6.1 A ‘do nothing’ option has been considered. This would entail refusing the grant funding and not delivering the projects and programmes within this programme. Other alternatives to this approach would be to utilise Council funding to deliver specific Council priorities or to seek alternative sources of external funding. These options have been rejected on the basis that they would not maximise the opportunity to access funding for North Yorkshire projects and communities. Alternative NYC projects have been considered for the REPF capital investment but did not make the final priority list at Appendix A mainly due to challenges around delivering in full within 2025/26 financial year.
7.0 IMPACT ON OTHER SERVICES/ORGANISATIONS
7.1 NYC services in the Community Development and Environment Directorates will be responsible for delivering and managing these programmes. This has been the result of consultations with service managers and Heads of Service and reflect the success of the previous UKSPF / REPF programme delivered by NYC.
7.2 The activity will be overseen by a project board made up of Officers. The Project Board will report to the new York and North Yorkshire Local Partnership Group.
7.3 Some impact on legal and financial services is anticipated due to the nature and scale of the work involved. This is mitigated by the provision an inbuilt contribution to management and administration costs.
7.4 Staffing costs associated with direct delivery of projects or grant programmes are built into project budgets to enable full cost recovery by the Council.
8.0 FINANCIAL IMPLICATIONS
8.1 Acceptance of this funding brings an additional £5.25m for Council and community-based projects in North Yorkshire during this financial year. This funding has no match funding requirement although there are conditions linked to use of the funds, expected outputs and outcomes and the timeframe within which the funding must be used. Any unused funds at the end of the financial year would be expected to be returned to the YNY CA.
9.0 LEGAL IMPLICATIONS
9.1 The Council will be required to enter a service level agreement with the YNY CA which will outline the Council’s obligations in terms of service delivery and reporting. The Service Level agreement is expected to reflect the requirements of the Memorandum of Understanding between the YNY CA and the Government. The Service Level Agreement when available will be reviewed by Legal Services.
9.2 In administering grants to recipients under the programme the Council will ensure that the Subsidy Control regime is complied with.
10.0 EQUALITIES IMPLICATIONS
10.1 An equalities impact screening document has been reviewed. Grant applications are asked to consider equalities implications and to recognise the need to comply with the Equalities Act 2010. See Appendix B.
11.0 CLIMATE CHANGE IMPLICATIONS
11.1 The overall programme includes funding available for decarbonisation projects. Grant applicants will be asked to consider the environmental impact of their project. See Appendix C.
12.0 RISK MANAGEMENT IMPLICATIONS
12.1 Risks associated with UKSPF/REPF are linked to non-delivery of the programme and undertaking work which might be aborted, not completed or not compliant with UKSPF/REPF conditions. A full programme level risk register will be maintained by the officer delivery group. Individual projects are assessed for compliance and deliverability.
12.2 Financial risk is mitigated by the fact that funding is provided at a 100% intervention rate without the need additional contributions. The creation of a Service Agreement between the Council and YNY CA will clarify the purposes and uses of the grant as well as reporting requirements and payment schedules.
13.0 CONCLUSIONS
13.1 Combined Authorities are increasingly becoming the Government’s main delivery mechanism for local community and economic development funding. By working with the YNY CA to deliver programmes and projects, the Council can seek to deliver its own strategic aspirations for North Yorkshire and support additional future funding for the region.
14.0 REASONS FOR RECOMMENDATIONS
14.1 To support delivery of approximately £5.25m of funding for Council and community projects in North Yorkshire and York.
|
15.0
|
RECOMMENDATION(S) |
|
15.1
15.2 |
To allow delegated authority to agree and enter into any associated agreements including but not limited to a Service Level Agreement with the YNYCA to access and deliver these funds to the Corporate Director of Resources in consultation with the Assistant Chief Executive Legal and Democratic Services and the Executive Member for Open to Business.
|
APPENDICES:
Appendix A – Detailed list of UKSPF and REPF Projects and Programmes 2025/26
Appendix B – Equalities Impact Assessment
Appendix C – Climate Change Impact Assessment
BACKGROUND DOCUMENTS:
– 2025/26 UK Shared Prosperity Fund, YNY Combined Authority Executive, 7.03.2025
Nic Harne
Corporate Director – Community Services
County Hall
Northallerton
Report Author – Mark Kibblewhite, Principal Economic Development Officer
Presenter of Report – Mark Kibblewhite, Principal Economic Development Officer
Note: Members are invited to contact the author in advance of the meeting with any detailed queries or questions.