Policy paper

Local Growth Fund (Scotland): Allocation Methodology

This note sets out the methodology used to allocate the Local Growth Fund across Scotland.

• From: Scotland Office and Ministry of Housing, Communities and Local Government
• Published: 8 January 2026

Applies to Scotland

Documents

Local Growth Fund (Scotland): Place selection and allocation methodology note

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The Local Growth Fund (Scotland) supports the UK Government’s Growth Mission to improve living standards for working people by investing in the Scottish regions that contain the areas with the lowest Real Disposable Household Income (RDHI) per capita. It will provide strategic flexible funding for investment to drive economic growth, with details on investment themes and interventions to be set out in due course.

This note sets out the methodology used to allocate the Local Growth Fund across Scotland. It sets out the core principles that underpin the approach taken and then outlines the process for selecting places and determining allocation.

Published 8 January 2026