Friday January 30th 2026
Glasgow City Chambers
Written by Local Democracy Reporter, Sarah Hilley
A cut in UK Government funding will hit work being carried out by a range of groups in the city.
Glasgow City Council says it will see a “significant reduction in revenue funding” from the Local Growth Fund.
Over the next three years the Glasgow City Region will get £60.9 million to be distributed between the area’s councils according to a report presented to a council committee this week.
Out of that – £18.4 million is available for revenue spending but that is over £10 million less that Glasgow council alone received previously.
A city SNP spokesperson said the new fund is “cutting millions of pounds from “employability schemes and third sector groups”.
The spokesperson added: “The UK Government is replacing the Shared Prosperity Fund with the Local Growth Fund, reducing the amount provided to the Glasgow City Region from around £90 million to £60 million.
“The new Local Growth Fund also changes how the money can be spent, meaning organisations which have helped thousands of people into employment and provided financial assistance to around 500 businesses will no longer be supported”.
Councillor Anthony Carroll, Greens, said: “That reduction in terms of revenue (spend) in particular seems to be the biggest thing getting hammered”.
Speaking at Tuesday’s economy, housing, transport and regeneration city policy committee, councillor Carroll said it is “really concerning” to see how groups are going to function due to the reduction in funding.
The Local Growth Fund for Glasgow will see about 70 per cent going towards capital spend while 30 per cent would be for revenue spend a council official told the meeting.
The situation is different for England with city regions being given up to 75 per cent revenue from their allocation for 2026 to 2027 according to the report presented to committee.
Labour councillor John Carson said “capital expenditure is incredibly important” to push for growth.
The Labour politician added that the Scottish Government has “received historic levels of investment”.
He said when it comes to revenue and “being able to fund so many organisations through the council the primary conversation from a UK Government level is that the Scottish Government should be delivering on those responsibilities it holds”.
Following the meeting on Tuesday, SNP councillor Paul Leinster, deputy chair of the committee, said: “This new UK Labour Government fund takes a sledgehammer to employability schemes, third sector groups and businesses across Glasgow.
“Rather than challenge their Westminster bosses to change their minds, Glasgow Labour’s only suggestion is to demand the Scottish Government bails out the organisations who’ve been hit by this”.
He added: “Pride in Place funding from the UK Labour Government will deliver millions of pounds of much needed investment into our local communities, particularly in relation to capital infrastructure.
“The Scottish Government has also received historic levels of funding from the UK Labour Government to support our local communities; yet our Councils and third sector organisations remain underfunded, whilst our libraries, community centres and sport facilities are closed or left to decay.
“The SNP in Glasgow should simply be asking their bosses in Holyrood ‘where has the money gone?’”
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