The Local Growth Fund replaces the UK Shared Prosperity Fund on April 1. Northern Ireland receives £129 million from the three-year Local Growth Fund. The fund mandates a 70/30 split favouring capital over revenue spending.

Unison states hundreds of workers in the community and voluntary sector risk job losses due to reduced revenue funding. The union calls the sector a key provider of frontline services in health, social care, and community support for vulnerable people.

Stormont parties oppose the funding shift. They back continued support for existing community schemes addressing economic inactivity, business start-ups, youth projects, and manufacturing innovation.

The prior UK Shared Prosperity Fund totalled £104 million over three years with greater revenue allocation. Its latest round provided £45 million, including £33 million for revenue and £12 million for capital projects.

Under the Local Growth Fund, Northern Ireland gets £27.4 million for capital and £11.8m for resource projects next year. Executive departments will oversee fund delivery.

UUP MLA Robbie Butler criticises the rigid 70/30 split as unsuitable for local providers. He seeks a fairer approach reflecting community needs.

A UK Government spokesperson notes Northern Ireland receives £45.5 million annually from the fund for three years, plus a £19.3 billion annual settlement and additional resource funding. The spokesperson says the Executive can redirect resource funding to the voluntary sector.