'I'm devastated the Government has pulled the plug on rural fund that saw £12 million invested in Shropshire': MP speaks out on decision to axe scheme
A Shropshire MP has said he is "devastated" that the government has decided to pull the plug on a long-standing funding scheme that has helped to unlock economic growth in rural areas.
South Shropshire MP Stuart Anderson, said the scrapping of the UK Shared Prosperity Fund (UKSPF) is despite Government Ministers admitting that overall productivity in the most rural areas of the UK is typically lower than urban areas.
Created by the last government, the UK Shared Prosperity Fund (UKSPF) replaced the European Regional Development Fund following the UK's departure from the EU.
It was introduced in April 2022 to uphold the last government's commitment to match EU structural funding across the UK - including in rural communities.
The programme included the Rural Prosperity Fund (RPF), which acted as a top up to support rural areas given the specific challenges that they often face.
Together, it has seen more than £12 million invested in Shropshire - with £2.6 million to support local businesses, farms, and community infrastructure through the rural prosperity top-up.
It funded capital projects for small businesses and community infrastructure, helping to improve productivity and strengthen the rural economy by supporting local jobs.
This year, the government has decided to scrap the scheme and replace it with a "transitional arrangement" that will allow local authorities to invest in local growth.
The Ministry of Housing, Communities and Local Government (MHCLG) said that this will introduce a "long-term approach to local funding" that supports the the Government's Kickstarting Economic Growth Mission.
Ministers have added that "no plans to directly replace" the scheme in rural areas like Shropshire, which do not have a Mayoral Combined Authority.
Stuart Anderson said: "As part of my plan to unleash rural prosperity in South Shropshire, I want to ensure that our local communities get a fair share of funding to thrive in the years ahead with improved infrastructure and enhanced public services.
"So, I am greatly disappointed that the government has decided to end the UK Shared Prosperity Fund (UKSPF) in March 2026 without having announced an equivalent replacement for rural areas. This includes the Rural England Prosperity Fund (REPF), which acted as a rural top-up to help address the additional needs and challenges that face rural areas like ours in South Shropshire.”
