The Death of Local Growth Funding: A Canary in the Coal Mine for Regional Economies?
There’s a quiet crisis brewing in East Devon, and it’s one that should have every local leader in the UK sitting up and taking notes. For the first time in half a century, this district council will receive zero funding from central government to support business growth. Zero. Let that sink in. What makes this particularly fascinating is that it’s not just a local issue—it’s a symptom of a much larger shift in how the UK approaches regional development.
The End of an Era: From EU Funding to Local Neglect
The UK Shared Prosperity Fund (UKSPF), the successor to EU structural funding, has been replaced by the Local Growth Fund and the Pride in Place Programme. On paper, these sound like positive steps toward targeted investment. But here’s the catch: the new funds are overwhelmingly focused on mayoral city regions and the 339 most deprived neighborhoods. Personally, I think this is a double-edged sword. While it’s crucial to address deprivation, it leaves areas like East Devon—which don’t meet the government’s deprivation metrics—out in the cold.
What many people don’t realize is that these changes aren’t just about money; they’re about power. By centralizing funds and redirecting them toward urban centers, the government is effectively sidelining rural and semi-rural economies. This raises a deeper question: Are we witnessing the deliberate marginalization of regions that don’t fit neatly into the government’s narrative of growth?
From Funder to Enabler: A Cop-Out or a New Beginning?
East Devon’s economic development manager, Tom Winters, has described the council’s new role as shifting from ‘funder’ to ‘enabler.’ On the surface, this sounds like a positive pivot—less reliance on handouts, more focus on organic growth. But let’s be real: enabling without resources is like trying to build a house without tools. It’s a nice idea, but it’s not practical.
One thing that immediately stands out is the council’s plan to refocus on ‘traditional’ economic development, like engaging with town centers and the commercial property market. While this is necessary, it feels like a band-aid solution. High streets across East Devon are already struggling, and the loss of major grant schemes like the Carbon Action Fund will only exacerbate the problem. If you take a step back and think about it, this isn’t just about East Devon—it’s about the broader decline of local economies in the face of centralized decision-making.
The Hidden Implications: What This Means for the Rest of the UK
What this really suggests is that the UK’s regional development strategy is becoming increasingly polarized. Urban centers with mayoral powers are set to thrive, while smaller districts are left to fend for themselves. This isn’t just an economic issue; it’s a cultural and social one. Rural and semi-rural areas are the backbone of the UK’s identity, yet they’re being systematically overlooked.
A detail that I find especially interesting is how this funding shift aligns with broader trends in global economics. Everywhere you look, there’s a push toward urbanization and consolidation of power in major cities. But at what cost? Personally, I think we’re risking the erosion of local communities and the unique economic ecosystems they support.
The Way Forward: A Call for Decentralization
In my opinion, the solution isn’t to throw more money at the problem—it’s to decentralize decision-making. Local councils like East Devon’s should have more autonomy to allocate resources based on their specific needs. What’s happening now is the opposite: power is being sucked into the center, leaving regions to scramble for scraps.
If there’s one takeaway from this, it’s that we need to rethink how we approach regional development. The current model isn’t just failing East Devon—it’s failing anyone who doesn’t live in a major city. And that should worry all of us.
Final Thought:
The funding crisis in East Devon isn’t just a local story—it’s a warning sign. If we don’t address the systemic issues driving this inequality, we’ll see more regions left behind. The question is: Are we willing to act before it’s too late?
