Cabinet members at Derby City Council will be asked to accept £3.288m of Government funding from the UK Shared Prosperity Fund (UKSPF) at the next Cabinet meeting on Wednesday 12 March.

The grant funding will cover the 2025/26 financial year and will be allocated through the East Midlands Combined County Authority (EMCCA). Cabinet members will also be asked to accept £0.3m of grant funding for 2025/26 from EMCCA to support inward investment and enter into a grant agreement with Marketing Derby to deliver outcomes.

The previous UKSPF programme provided £2.6 billion of funding across the UK from 2022 to 2025. The funding sought to improve pride and increase life chances across the UK by investing in three key service areas: Communities and Place, Supporting Local Businesses, and People and Skills.

The current government has now extended the UKSPF for an additional year, allocating a further £902m of national funding for the 2025/26 financial year as part of a transitional agreement.

This year’s UKSPF allocation for Derby is not dissimilar to previous years due to a relocation of funding based on levels of deprivation, ensuring that Derby has received a strong outcome to help address the additional pressures this brings.

The funding will continue to be used to support various areas such as working towards healthy, safe and inclusive communities, thriving places, support for businesses, employability and skills.

Councillor Nadine Peatfield, Leader of Derby City Council and Cabinet Member for Regeneration, Strategy and Policy, said: “The UK Shared Prosperity Fund has been a vital source of grant funding in Derby for many years and has allowed us to continue our vital work across three important agendas. Receiving this transitional funding is a bonus, and Derby has received a fair allocation that reflects the needs of our city.

“The extension of the UKSPF for the financial year 2025/26 will allow us to continue investing in businesses, communities, and skills at a time where support for Derby’s economy and communities is crucial. With future funding reforms on the horizon and budget pressures, we will continue to work hard to deliver real benefits for the people of Derby.”