To ask the Minister of Finance for an update on discussions with the UK Government in relation to the Local Growth Fund.

There has been extensive engagement between my Department and the Westminster Government in relation to the Local Growth Fund.

In October, I met the Secretary of State, Hilary Benn, and Steve Reed, Secretary of State for the Ministry of Housing, Communities and Local Government. We agreed to an intensive period of work to develop a way forward on the Local Growth Fund.

This has led to the identification of suitable options for the Local Growth Fund’s 2025/26 £3.8 million Capital allocation, which were agreed by the Executive for submission to Westminster.

The Ministry of Housing, Communities and Local Government will deliver the Resource element of the Local Growth Fund in 2026/27, the practicalities of which are being urgently developed.

It is intended that the Executive will manage all elements of the Fund from April 2027 and collaborative working between Departments, local partners and Whitehall will be needed to facilitate this.

The £9.3 million made available for Economic Inactivity in 2026/27 is significantly less than in previous years. Westminster decisions on a Capital-heavy funding profile and ongoing delays will be devastating for the Community and Voluntary sector.

We need a funding split that meets our local needs and, at least, reflects the more favourable Resource profile given to English Mayoral Authorities.

Any support beyond the Local Growth Fund will be a matter for relevant Ministers. No Departments have bid for funding to enhance the Local Growth Fund in the Draft Budget 26-29/30. However, Members will be aware that our Budget position is highly constrained.

I have, and will continue to, press British Ministers for an outcome that better meets local needs.