A move from towns to neighbourhoods

The long-awaited replacement for the Conservative government’s ‘Long-Term Plan for Towns’ funding programme has finally been announced eight months on from the general election. A drum roll please to welcome the…‘Plan for Neighbourhoods’! (which joins the Plan for Change – clearly ‘Plan for’ is the new preferred government phraseology).

However, a closer look at the details show that apart from the name little has actually changed.

While it’s welcome news that the same 75 ‘Long Term Plan’ locations have been carried over, ensuring continued funding over the next decade and a shift away from competitive funding streams, we had hoped to see more places added and a modest funding increase to account for the delays, uncertainty and inflation eroding the value of money.

The eight-month delay could have been an opportunity to add a few missing but deserving locations to the shortlist, better supporting the overarching objective of “growing the economy, delivering safer streets, and creating opportunities for everyone.”

In Angela Rayner’s own words “too many neighbourhoods have been starved of investment” and we would like to see a further second round of places put forward in the summer alongside the conclusion of the spending review process.

Each of the 75 areas now need to form a ‘Neighbourhood Board’ (i.e. a Town Board under the old wording) that brings together a broad range of stakeholders including residents, local businesses, and grassroot campaigners to deliver the new vision for the area.

Similarly to the Shared Prosperity Fund, where partnerships were established, the board will decide how to spend its allocated £20 million on a number of projects including (but not limited to): high streets, local parks, youth clubs, cultural venues, libraries, and health and wellbeing services.

Previously, the three investment themes were: safety and security, high streets, heritage and regeneration, and transport and connectivity. These have been updated to include more thematic areas including: housing, work, productivity and skills, cohesion, health and wellbeing, and education and opportunity.

Full details regarding the pre-approved interventions and thematic areas can be found here BUT it’s worth reading the fine print as:

“Where activities fall outside the scope of the pre-approved interventions but the board, based on their community engagement, believes they are better placed to meet local needs, the board should seek to pursue these.”

For pre-approved projects, no business case will be required but activities outside of this list will require one.

Our three top tips for deciding on projects are:

1. Running a transparent optioneering process that all board members agree to use to select pre-approved or non pre-approved projects.
2. Rather than spending the money thinly over a number of projects, it may be better to focus on a smaller number of interventions.
3. The programme provides the opportunity to fund roles over the longer term that can bring in extra funding/regeneration support/community support.

The 10-year regeneration plan will outline the community’s overarching vision which includes a detailed investment plan for the first four-year investment period. The projects put forward should align with the three overarching strategic objectives of: thriving places, stronger communities, and tacking back control.

Key dates to note:

• 22 April 2025: Neighbourhood Boards confirm finalised membership and any proposals to alter their place boundaries.
• Spring 2025 to Winter 2025: Neighbourhood Boards submit their Regeneration Plan to MHCLG for assessment and approval.
• From April 2026: Programme delivery funding released to local authorities, and delivery phase begins.

Bradshaw Advisory has a successful track record in creating long-term partnerships with local authorities across the UK working on Shared Prosperity Funds, Towns Funds, Levelling Up Fund, and Long-Term Plan for Town projects. If you would like to find out more about how Bradshaw Advisory can support your investment/regeneration plans, please get in touch.

Matt Latham and Jay Atwal are Senior Consultant Economists at Bradshaw Advisory. This article is also published, with an additional map highlighting the local authorities housing the selected 75 communities, here.

Would you like to write for the iED? As part of iED individual and organisation membership, ALL members have the opportunity to publish articles on our website. We are now seeking ideas for contributions from members, including those in our Early Career Network. These can be around any aspect of economic development, insights on work you are undertaking and project successes you would like to share, or any viewpoint you would like to express. If you have an article proposal please email philsmith@ied.co.uk.