Guidance

Pride in Place programme: delivery guidance

Updated 20 March 2026

This guidance document should be read alongside the Pride in Place Programme prospectus, which sets out our guiding policy principles. This guidance provides you with the essential delivery information you need as accountable body, Chair, Neighbourhood Board and MP. Please make sure that you read the information carefully.

Key upcoming dates            

August 2026:

• 40 Neighbourhood Boards in places named in March 2026 and phase 2 places in Wales, to confirm finalised membership, community engagement conducted so far and any proposals to alter the ‘default’ area boundary to MHCLG by 28 August 2026.

Early autumn 2026:

• MHCLG to complete review of boundary proposals and community engagement of all phase 2 places and confirm all decisions.

November 2026

• 160 phase 2 Neighbourhood Boards submit their Pride in Place Plans to MHCLG for assessment and approval by 30 November 2026.

February 2027

• 40 Neighbourhood Boards in phase 2 places named in March 2026 and phase 2 places in Wales submit their Pride in Place Plans to MHCLG for assessment and approval by 26 February 2027.

Who manages the Pride in Place funding

Funding will be managed in partnership between:

• The Neighbourhood Board, led by an independent Chair, which is responsible for co-producing a Pride in Place Plan for each place and delivering in the interests of local people.

• The local authority which will support the Neighbourhood Board to develop and deliver the plan, and act as the accountable body at the start of the programme.

• The local MP who has a key role in supporting the Neighbourhood Board and Board Chair, informing the work and involving the community.

• The community, to shape each place’s priorities and hold the Neighbourhood Board and accountable body to account.

Neighbourhood Boards are the decision makers for funding, supported by the respective local MP and local authority. Together they should ensure that:

• the appropriate capacity and capability is in place throughout the programme period to ensure that funds are distributed effectively in the local area.
• residents, businesses, and grassroots organisations are actively involved in programme design and decision-making to ensure delivery reflects the priorities of local people and helps build capacity within the community
• all income generated, including interest gained, from Pride in Place funding should be treated as part of the programme funding and goes back into the community via the Neighbourhood Board

We encourage boards to consider ways in which Pride in Place funding can be used alongside other government and non-government funding. The Ministry of Housing, Communities and Local Government (MHCLG) will also be working to ensure the funding, and programme more broadly, is used as a catalyst to bring in extra funding and activity – for example through other government departments, philanthropy, social investment and socially minded businesses.  

Working with the Northern Ireland Executive

In Northern Ireland, the distribution of powers between local councils and the Executive are different than in Great Britain. Local authorities and boards should consider this within their governance and decision-making structures.

Local government terminology

References to local authorities, councillors and local government structures throughout this guidance should be interpreted in accordance with the relevant arrangements in England, Scotland, Wales and Northern Ireland.

Neighbourhood Boards

A Neighbourhood Board must be established in every Pride in Place area. These boards will give local people the power to decide how funding is spent, putting communities in charge of the future of their neighbourhoods. The Neighbourhood Board must bring together local people and those with a deep connection to the area such as residents, local businesses, grassroots campaigners, workplace representatives, faith and community leaders and any other relevant organisations.

Each board must work with the wider community to develop a Pride in Place Plan, setting out a vision for their area and the projects that they would like to prioritise. These plans will set out a pathway for delivery of these projects over the course of the 10-year programme and beyond, considering opportunities to attract and combine new and existing private, public, and philanthropic funding streams.

Board Chairs

Each Neighbourhood Board will be led by an independent Chair, appointed and approved by the local MP and local authority. To ensure transparency and accountability, places are encouraged to undertake a public competition to recruit to the role. As the accountable body at the start of the programme, the local authority is also responsible for conducting due diligence when appointing a Chair.  

In most circumstances we expect this role to be voluntary, like that of a school governor or charity trustee and therefore not compensated. However, to ensure that Neighbourhood Boards have the right leadership, places may decide to remunerate chairs who could not otherwise afford to fulfil the position. In such circumstances, chair remuneration should be agreed between:

• the Chair
• the MP
• the local authority
• the Neighbourhood Board (if in place)

The MHCLG Delivery Manager should be informed of the remuneration agreement.

The chair can be remunerated directly, or their employer/organisation(s) can be remunerated, to backfill for the time the chair needs to dedicate to the Pride in Place Programme.  Remuneration should be kept as low as is necessary as this is not a salaried role. All remuneration should be transparent and published on the relevant local authority and/or board webpages.

While there is no requirement to formally appoint a deputy Chair, doing so can help to improve the Board’s resilience and effectiveness through succession planning or deputising where required. It is for the Chair, in partnership with the local authority, to consider appointing a deputy.

If the local authority and MP cannot reach consensus on the appointment of a suitable Chair, MHCLG will intervene to broker an agreement.

The Chair should act as a champion for the place and provide leadership for the board, ensuring it is community-led and embedded within the local area. We expect that the Chair to be someone who is ‘from’ the area, living or working in the area, holds a prominent role in the community or has a passion for the place, such as:

• the head of a local charity
• a local campaigner
• a community leader
• a faith leader
• a teacher
• a local GP
• a director of a football club

The Chair of the Neighbourhood Board cannot be an elected representative, or someone who would present a conflict of interest, such as a:

• MP
• MSP
• MS
• MLA
• local councillor
• local authority officer
• civil servant

We encourage Chair selection to be expansive, looking both to established community leaders, as well as people who may not have always engaged with local services or activity in their community. The Communities Delivery Unit will support councils and MPs throughout this process.

If a board Chair resigns, a written confirmation of their intent must be submitted to MHCLG and co-signed by the MP and local authority.

Board Chairs should be engaged, collaborative and committed to driving the programme forward in line with the wishes of the local community. If a Chair fails to undertake their duties as expected, the local authority has the power to recommend the removal of the Chair, with the agreement of the local MP and subject to approval by MHCLG. Removal of the Neighbourhood Board Chair is a serious governance action that should be guided by clear, objective criteria to ensure fairness and transparency. Such decisions should be determined locally, however, grounds for removal may include:

• sustained poor attendance or lack of participation in board meetings (e.g. absence for 3+ months)
• conflict of interest not properly disclosed or managed
• persistent failure to promote a culture of community involvement in line with the programme’s guiding principles
• evidenced failure to abide by the Nolan Principles

Neighbourhood Board recruitment and membership

The board should bring together residents, local businesses, grassroots campaigners, workplace representatives, faith, and community leaders and those with a deep connection to their area.

Chairs will lead the recruitment of members of the Neighbourhood Board, ensuring an inclusive and representative selection of people from across the local community. Chairs should be supported by the local authority and local MP to identify and recruit candidates for the board.

The following criteria should guide board selection:

• boards must have at least 8 members, to ensure a broad range of voices and perspectives

• the majority (at least 51%) of members should live or work within the boundaries of the neighbourhood, ensuring that the board is resident-led

• members should broadly reflect the range and diversity of people who live in the area – for example, in relation to age, ethnicity, gender, faith, disability or income levels

The Neighbourhood Board may also decide to include a range of advisory sub-groups to support the board’s function.

All members of the board have an equal right to vote on board issues.

Council officers may provide secretariat support and can sit as an observer to discussions, if agreed with the Chair.

Membership changes

We expect membership of boards to evolve over time throughout the programme. Boards can design their own process to update the membership, in collaboration with the local authority and local MP. Any updates must be communicated to MHCLG, and the appropriate conflict of interests checks completed.

Parliamentary representatives

The relevant local MP must sit on the board to act as a champion of their local community.

The Pride in Place Programme was established in two phases: phase 1 at town level, and phase 2 at neighbourhood level.

Where a phase 1 boundary is spread across constituencies, and the geographical share is 25% or above, a second MP may be invited to sit on the board. Where the percentage share is 10% to 25%, those MPs should be consulted on any plans that impact an area within that MPs constituency, otherwise the MP with the largest percentage of constituency within the place boundary should be the sole MP representative.

Phase 2 of the programme targets smaller geographical areas called Middle Super Output Areas (MSOA). Our methodology applied a cap of one MSOA per parliamentary constituency. While in most cases whole MSOAs fall exactly into one constituency, some MSOA boundaries span across boundaries. In these cases, MSOAs were allocated to one constituency based on the centre of population distribution. This means that only one MP is responsible for each phase 2 neighbourhood. It is this responsible MP that will sit on the Neighbourhood Board.

In line with this government’s commitment to reset relationships with the devolved governments and respect their legislatures, in Scotland the appropriate constituency MSP should be invited to also sit on the board. Councils in Northern Ireland are encouraged to invite the MLAs to the board and should ensure that representation is balanced.

Local councillors

All boards should include at least one ward councillor. As board members, ward councillors can play a key role in convening and leading local partnership working with the community to shape local priorities.

Where relevant for the place, the Chair may wish to invite parish, town, or community councillors, noting that numbers of elected representatives should be limited to promote community leadership.

Other representatives

The board should comprise representatives from a cross-section of the local community to promote community leadership, with the majority of board members residing or working within the boundary area, in line with the ‘community-led’ principle of the programme.

The Chair, supported by the local authority, must ensure the right people are around the table to fully reflect the priorities of the place. Chairs will want to consider the following groups, although not all will be represented in every Pride in Place area:

Community leaders, organisers and activists, such as:

• community groups
• faith groups
• local charities
• neighbourhood forums, neighbourhood watch or local tenancy groups
• youth groups
• social clubs
• local councils for voluntary service (CVS) in England, Third Sector Interface (TSI) in Scotland, Wales Council for Voluntary Action (WCVA) in Wales or Third Sector Trustee Network in Northern Ireland
• workplace representatives, for example trade unions

Local businesses and social enterprises, such as:

• the chair or board members for the local Chambers of Commerce or Business Improvement District (BID) where these exist
• key local employers or investors in the place
• registered social housing providers
• co-operatives

Cultural, arts, heritage and sporting organisations, such as:

• local sports club directors or fan representatives
• local heritage groups
• director of a local museum

Public agencies and anchor institutions, such as:

• local schools, higher education and further education institutions
• mayors of combined authorities or their representatives
• relevant government agencies for that area, for example, Integrated Care Boards or Community Planning Partnerships in Scotland
• relevant health care providers, for example GPs from local practices or senior NHS staff
• relevant senior local authority officers, for example, a Director for Economic Development to ensure coordination with wider plans
• a representative from other relevant local agencies

Chairs should seek to bring a broad range of voices and perspectives into their board, ensuring that it is representative of the community it serves. To support inclusive participation, members of the Neighbourhood Board should be permitted to claim reasonable expenses incurred through their involvement. This may include, but is not limited to, travel costs and childcare expenses. Offering such support is essential to enabling the involvement of people who might otherwise be unable to participate due to financial or caregiving constraints.

Accountable bodies should ensure that their Neighbourhood Board membership complies with their duties in relation to their equality duties, including the Equality Act 2010, public sector equality duty and section 75 of the Northern Ireland Act 1998.

Bordering neighbourhoods

In a small number of cases, Pride in Place neighbourhoods directly border one another, covering one contiguous area. In these instances, bordering areas will be permitted to merge governance arrangements according to their own assessment. This should be communicated to MHCLG as part of the board and boundary confirmation process. 

Secretariat function

Each board can use the funding allocated to them to employ a secretariat. The board should agree who the secretariat is and the scope of their function.

The board should consider whether an alternative organisation, other than the local authority, such as a local community group, could act or support in this role to build capacity and capability. This will support boards in moving towards community-led delivery by the end of year three of the programme, as set out in the prospectus.

Transparency

The board should publish membership and governance arrangements (including minutes of meetings and decision logs) on the lead local authority’s website to meet our transparency requirements. We also encourage boards to set up their own webpage to communicate directly with members of the public. 

We expect Neighbourhood Boards to publish:

• a documented decision-making process, outlining the voting rights of the board
• profiles of board members
• all board papers in advance of the meeting within 5 working days
• draft minutes of meetings following the meeting within 10 working days
• final minutes, once approved by the board within 10 working days
• any conflicts of interest reported, within the published minutes
• transparent records of all Pride in Place spend

Boards are expected to adhere to their local authority’s internal guidelines around the publication of relevant reports and financial information, with the default position being that all papers are open to the public.

Code of conduct

Everyone working on the Pride in Place Programme (including when delivering activities outside of their area) should operate in an open, constructive, honest, inclusive and respectful way. All members should sign up to a code of conduct based on the Seven Principles of Public Life (the Nolan Principles).

The accountable body and Chair must ensure that clear processes are in place for anyone to flag concerns around behaviour, and a proportionate way of responding that allows for an impartial person to review and propose a response. There are some behaviours that are never acceptable and we would expect boards to respond to in all cases: 

• Behaviour which has or could have a hurtful or damaging effect, whether intentional or unintentional. This includes but is not limited to discrimination of any form; actual or threatened physical, sexual, verbal, emotional or financial abuse; harassment; promotion or sharing of hateful materials; unjustified exclusion from the partnership or activities; intimidation; and any action which puts the safety or dignity of others at risk.

• Non-adherence with agreed board policies.

Social media advice

Social media can be a great way to reach the local community, letting them know about consultations and events, share announcements, and keeping them up to date with plans.

Chairs and boards should consider which platforms are right for their area – in terms of reaching the people they want to engage with, as well as the interaction they are getting.  For example, LinkedIn can be great for reaching a business audience – which might include investors and collaborators, while TikTok skews much younger and requires fast moving, engaging video content. A general rule of thumb is to use great images, keeping it short, positive and factual, and to use the hashtag #prideinplace.

Managing online abuse

The Local Government Association (LGA) has published advice on dealing with online abuse:

“The best way to deal with a troll is ‘not to feed it’. By which we mean, don’t respond to a post which is designed to upset, elicit a response, or to further a troll’s own goals.

The best response is to either:

• ignore what they have posted
• or, if it’s on your own page or profile, to delete or hide their comment – this will mean your other followers should not see it

If that doesn’t work, consider your next step. This could include blocking them or reporting them to the social media platform or [if you are being repeatedly harassed] the police.”

Additional points:

• Always remain professional in tone. Do not get drawn into social media arguments or speculation; or post anything you may later regret.
• Remember, anything you post – including replies and ‘DMs’ (direct messages) can end up in the public domain.  Comments made on other apps including WhatsApp can also be leaked.

Declaration of interests

The accountable body must ensure that there are clear processes for managing conflicts of interest (commercial, actual, and potential) in decision making, which apply to all involved with the work of the board.

As active members of the community, it is reasonable that some prospective board members will have professional or other interests that may indirectly benefit from the board’s work. This does not preclude individuals from joining the Neighbourhood Board, but interests must be declared, and members should recuse themselves from relevant decisions.

The accountable body should provide guidance on:

• the financial and non-financial interests which board members must declare
• the process that the Neighbourhood Board members must follow for declaring interests
• the process for requesting an exemption

Board members must then complete a declaration of interests, which the accountable body will then hold. This can be in a format the accountable body already uses.

Members are responsible for declaring their interests before the Neighbourhood Board considers any decisions. The accountable body must record:

• actions taken in response to any declared interest
• any gifts or hospitality given to the Neighbourhood Board or individual members

Neighbourhood Boards in Scotland, Wales and Northern Ireland

The UK Government has also committed to resetting relations with the devolved governments, and close collaboration within communities and with wider government will make boards stronger and more effective.

In Scotland, Neighbourhood Boards should consider the policy objectives of the Scottish Government’s Regeneration Strategy, which sets out Scotland’s commitment to support the regeneration of the most disadvantaged urban and fragile rural communities and how the interventions delivered can complement Scotland’s Town Centre First Principle and Town Centre Action Plan. We recommend that Neighbourhood Boards have early conversations with their respective MHCLG contact and the Scottish Government Regeneration Unit to consider opportunities to align objectives and maximise funding opportunities.

In Wales, boards should consider how their Pride in Place Plan interplays with the objectives of the Welsh Government’s Programme for Government, the Well-being of Future Generations Act (including its five ways of working and seven well-being goals), the Transforming Towns programme, and the Future Wales: National Plan 2040 planning framework, alongside other relevant strategies such as regional economic frameworks and local well-being plans developed by Public Services Boards.

In Northern Ireland, phase 1 boards should consider how their Pride in Place Plan interplays with the objectives of the Northern Ireland Executive’s Programme for Government, alongside other existing strategies and local development plans such as Council Community Plans and Local Development Plans.

Geographical boundaries

Funding allocated to each place should be spent for the benefit of the community within an agreed geographic area.

The default geographic boundary for the 75 phase 1 places is determined as follows:

• for England and Wales: the built-up areas as defined by the Office for National Statistics (2022 boundaries GB BGG)
• for Scotland: based on Localities 2020 geography
• for Northern Ireland: Settlements 2015 data

The default geographic boundary for the 209 phase 2 places is determined as follows:

• for England: “neighbourhoods” are approximated as 2021 Middle Layer Super Output Areas (MSOAs)
• in Scotland: “Neighbourhoods” are comprised of Integrated Zones
• in Wales: “Neighbourhoods” are comprised of MSOAs and LSOAs

Changes to boundaries

Phase 1 places have agreed boundaries in place and these are final.

Phase 2 Neighbourhood Boards may make representations to MHCLG to alter their default boundary within the following parameters. These parameters are:

• the new geography must be precisely defined – i.e. no ambiguity over whether a specific residence falls inside or outside the boundary
• the new geography must completely contain the boundary originally selected.
• the new geography must be a single contiguous area
• the population of the new geography must remain at neighbourhood level
• the change in geography must be agreed by the MP, the local authority, and the Board, ideally with wider local consultation, and must be submitted in writing to MHCLG
• any boundary changes must be submitted by 17 July 2026; or 28 August 2026 for areas in Wales and those named on 20 March 2026
• the new geography must remain within the spirit of the programme

As an example, a key asset for the community may sit just outside the default boundary, or it might exclude a street which is understood by local communities as being part of the same neighbourhood. These would be appropriate reasons for amending the boundary.

Boards should not submit requests to remove an area from the boundary unless they can evidence a clear error in its inclusion.

Pride in Place Plans

Once established, Neighbourhood Boards must co-create a Pride in Place Plan with the wider community, supported by the local MP and the local authority. The plan should outline the community’s vision for change over the next decade. Everyone should have a say in the future of their area, particularly those that have previously been left out of decision-making.

We know the challenges in places vary, and that it is the people living and working in these areas who are best placed to identify these challenges and inform the solutions. Neighbourhood Boards must carry out extensive engagement with the community to make sure that a diverse range of voices are heard in developing this plan and at every stage of the programme. Engagement will look different from place to place but could include listening campaigns, community conversations, community workshops or resident forums.

Involving the community in decision-making

When it comes to involving the community in decision-making, it is important to ensure this is not dominated just by those with the loudest voices. Whilst there is no one-size-fits-all approach to involve communities in decision-making, all Neighbourhood Boards are expected to develop plans to carry out deep, broad and sustained engagement with their community.

That is why we are providing the time, funding and support for Neighbourhood Boards to avoid generic, one-off consultations and hear from everybody, including groups who have been marginalised or whose voices are less often heard. These underserved groups include those whose socioeconomic circumstances, language or culture mean that they struggle to access ‘usual’ methods of engagement. Examples of this might be people experiencing homelessness, without access to the internet, who do not speak English, or the elderly.

Community engagement should be proactive and ongoing, so that people understand how their priorities are being delivered over time. It should happen consistently throughout the course of the programme, as the needs and priorities of communities evolve, and should ultimately outlive the programme’s 10-year lifecycle.

Feedback and follow up are crucial: boards must return to the people and groups who respond to them, to set out any progress made, or barriers preventing this, so it is clear how their concerns and priorities were accounted for. Boards are ultimately delivering for local people, so they must also create space for communities to hold them to account for delivery and scrutinise how plans are being put into practice. MHCLG will require evidence that this engagement has taken place and that community feedback has been meaningfully considered throughout.

Boards should consider how local community organisations could be used to help deliver engagement that reaches out across the community.

We have provided an engagement toolkit to all Neighbourhood Boards to help areas get started and deliver sustained engagement with their wider community throughout the programme. Developed by Ipsos, and informed by engagement pilots in 13 trailblazer neighbourhoods, the toolkit will include resources to help boards go beyond traditional surveys and consultation, so they can meaningfully involve local people in decision-making right from the start.

Funding

Funding will be paid by MHCLG to the accountable body for each Pride in Place area, which at the start of the programme is the relevant local authority unless an alternative arrangement has been agreed with the department. Each area will receive funding and support up to £20 million over a 10-year period, including early capacity funding and delivery funding for community engagement and set up of boards.

The Pride in Place Programme is divided into three investment periods. We will review a refreshed ‘investment plan’ ahead of the release of year 1 delivery funding for each investment period. The investment plan for period 1 of delivery should be submitted as part of the Pride in Place Plan.

• Period 1: the 2026 to 2027 financial year to the 2029 to 2030 financial year (4 years)
• Period 2: the 2030 to 2031 financial year to the 2032 to 2033 financial year (3 years)
• Period 3: the 2033 to 2034 financial year to the 2035 to 2036 financial year (3 years)

Year 1 early delivery funding for phase 2 places

Please note that phase 1 places have received their early capacity funding and are now in year 1 of delivery.

First payment for phase 2

In the 2025/26 financial year, all phase 2 Pride in Place areas received £150,000 early revenue funding to support community engagement and the establishment of Neighbourhood Boards. This first payment should be used to support the establishment of the board, including – but not limited to – hiring a secretariat function, running a recruitment campaign for a Chair, putting a board together and doing community engagement. The local authority should also consult the MP on the best use of initial funding in the absence of a Neighbourhood Board and Chair.

In the 2026/27 financial year, a further payment of £135,000 revenue funding and £117,604 capital funding was made to accountable bodies marking the commencement of the delivery phase. A second revenue payment of £138,462 will be made following approval of the Chair, board membership, and (if applicable) boundary change.

This early delivery funding should be used to support the Neighbourhood Board’s engagement with the local community and to build the capacity of the board and local voluntary and community sector, and to deliver quick wins for example via small capital investments ahead of the Pride in Place Plan submission.

In line with the UK Government’s commitment to reducing the use of private sector consultancy and to help build sustainable local capacity and capabilities, boards should limit use of support procured from the private sector or organisations without links to the neighbourhood. We strongly encourage boards to consider how to build capacity locally, for example by providing grant funding to community groups or charities who can deliver community engagement on the board’s behalf.

Once the phase 2 Pride in Place Plan is approved, the next payment of £1.36m will be released (financial year 27/28) with annual payments thereafter (see full section on funding profile for both phase 1 and phase 2 below).

Non-exhaustive examples of early delivery investment:

• Delivering deep and broad community engagement to inform the development of Pride in Place Plan, going beyond consultation.
• Funding a trusted local community and voluntary sector group to help Boards reach out across the community, including to support Board recruitment and engagement plans.
• Developing the Pride in Place Plan, which might involve securing technical advice and expertise on, for example legal, design and architect fees [but note limits on the use of private sector consultancy below]
• ensuring capital and infrastructure interventions can hit the ground running, for example, by kickstarting the planning application process, securing architectural plans and obtaining legal advice, or any other activity that local authorities and boards consider will progress their plans
• delivering “quick wins” which the community have requested through engagement, for example – street cleaning, small scale infrastructure investment or ways to tackle anti-social behaviour
• Costs associated with establishing and running the Neighbourhood Board, including any process to establish the board as a charity, community interest company, or other bottom-up organisational model, to sustain long-term investment
• The accountable body may also choose to provide modest payment to the Neighbourhood Chair for their time, with the agreement of the board.

What delivery funding can be spent on (phase 1 and phase 2)

Neighbourhood Boards must choose which projects and activities they would like to pursue based on the priorities identified through their community engagement and consultation, explaining in their Pride in Place Plan how this activity reflects the demands and needs of local people.

Projects and activities are not explicitly tied to one programme objective. Each one may deliver across any or all the strategic objectives of the programme: thriving places, stronger communities and taking back control.

To make sure boards have maximum spend flexibility and are not required to regularly seek approval from central government, we have provided an indicative list of the types of projects or initiatives that will benefit communities in a long-term and sustainable way.

This list is not exhaustive, and we encourage Neighbourhood Boards to think creatively about how to deliver the objectives of the programme.

Off-menu activity

Boards can also spend funding on ‘off-menu’ projects and interventions - activities which do not fit within the list of indicative interventions - where they agree a business case with MHCLG demonstrating:

• how this delivers one or more of the strategic objectives of the programme
• how it delivers value for money
• why it does not fit within the indicative interventions list

Boards should not spend ‘at risk’ on proposed off-menu activities, prior to approval of a business case and should contact MHCLG as soon as an ‘off menu activity’ is identified.

Management costs

The Neighbourhood Board can decide to use a proportion of their funding towards management costs. This may include the cost of delivering a secretariat function for the Board, staff costs to support the appraisal and selection of projects or other such costs which support delivery of the programme in the community.

Management costs must be proportionate and kept to the minimum required to support effective delivery of the programme. Please note that if MHCLG deems the management spend to be in excess of genuine business need, the Department may opt to intervene.

The board should carefully consider how much funding and resource is required to support the day-to-day management of the programme, while also making sure that a significant proportion of delivery funding is retained for interventions to address the local community’s priorities and needs.  

The board should engage with the respective accountable body to decide what resources are required to meet both the delivery, assurance and compliance requirements of the fund.

Activities not eligible for funding

The following costs should not be included in any Pride in Place programme expenditure:

• using the fund to lobby (via an external firm or in-house staff) and undertake activities to influence, or attempt to influence, Parliament, government or political activity including the receipt of Pride in Place funding, or attempting to influence legislative or regulatory action
• payments for activities of a party political or exclusively religious nature
• VAT reclaimable from HMRC
• gifts, or payments for gifts or donations
• statutory fines, criminal fines or penalties
• payments for works or activities which the lead local authority, project deliverer, end beneficiary, or any member of their partnership has a statutory duty to undertake, or that are fully funded by other sources
• contingencies and contingent liabilities
• dividends
• bad debts, costs resulting from the deferral of payments to creditors, or winding up a company
• expenses in respect of litigation, unfair dismissal or other compensation
• costs incurred by individuals in setting up and contributing towards private pension schemes

Where funding can be spent

Boards can choose to fund interventions across their agreed area or to target funding towards areas depending on the priorities identified in their engagement. We expect boards to give particular consideration to residents of the most deprived parts of the geography, and the initiatives which will most meet their needs. This is especially important in phase 1 areas where geographical boundaries are larger.

To support this, we will include information on the most deprived Lower Layer Super Output Area (LSOA) within each area, or equivalent small-area statistical geography in Scotland, Wales and Northern Ireland, in bespoke data packs which are provided to each Pride in Place area.

The exact location of projects and activities, and where money can be spent should be decided by the Neighbourhood Board within the following parameters. In some circumstances, following community engagement, a board may decide that the best way to serve the residents within the programme boundary may be to invest in assets which technically lay outside the boundary area. There are no restrictions on funding being spent outside the area or in other local people also benefitting, as long as the board’s decisions are first and foremost based on the aspirations and needs of residents in the Pride in Place area, in line with the spirit of the programme.

As a guide, the key considerations are whether projects and activities:

• remain within the spirit of the programme
• have the agreement of the board, backed up by wider community engagement, and a clear rationale
• benefit the residents of the neighbourhood within the agreed boundary
• involve a key community asset used by residents of the original neighbourhood

For example, for activities such as creative workshops and community initiatives, it is not essential that all attendees and beneficiaries are from communities within the agreed boundary, provided the primary benefit is felt within the intended area.

Similarly, plans to improve transport connections or shops on the local high street may extend beyond the agreed geographic boundary, for example funding for a cycle route from a location within the Pride in Place neighbourhood to a place outside it.

Full funding profile

All Pride in Place areas will be paid up to £20m over 10 years. Below is a timeline of how much will be paid and when over the 10 years, depending on whether an area is in phase 1 or phase 2 of the programme.

Phase 1

Each community will receive funding and support totalling up to £20 million. The funding will be split 75% capital and 25% revenue, and will be paid to the accountable body in line with the following profile:

Grant type (£000s)	25/26	26/27	27/28	28/29	29/30	30/31	31/32	32/33	33/34	34/35	35/36	Total
Total revenue funding	350	231	256	432	432	432	432	437	450	450	450	4,599
Revenue funding (capacity)	350	-	-	-	-	-	-	-	-	-	-	600*
Revenue funding (grants)	-	232	256	432	432	432	432	437	450	450	450	3,999
Capital funding (grants)	-	360	1,736	1,605	1,605	1,605	1,605	1,605	1,605	1,605	1,605	14,936
Total	350	742	1,991	2,037	2,037	2,037	2,037	2,042	2,055	2,055	2,055	19,536

• For revenue capacity, £250,000 was provided over the 23/24 and 24/25 financial years.
• Values are rounded.

Phase 2

Each community will receive funding and support totalling up to £20 million. The funding will be split 63% capital and 37% revenue, and will be paid to the accountable body in line with the following profile:

Grant type (£000s)	25/26	26/27	27/28	28/29	29/30	30/31	31/32	32/33	33/34	34/35	35/36	Total
Revenue funding	150	273*	692	692	767	767	767	767	767	767	767	7,174
Capital funding	0	118	668	1,455	1,455	1,455	1,455	1,455	1,455	1,455	1,455	12,426
Total	150	391	1,359	2,147	2,222	2,222	2,222	2,222	2,222	2,222	2,222	19,600

• Funding post financial year 2028/29 will be reviewed at the next Spending Review.
• *Revenue funding will be paid out across two tranches in Year 1 (2026/27) of the programme – 50% will be made at the start of the financial year, and the remaining 50% on approval of the Chair, board membership, and (if applicable) boundary change.
• Values are rounded.

Funding flexibilities

This programme affords significant financial flexibilities to Neighbourhood Boards to support with delivery.

In all cases, MHCLG will pay the accountable body the full annual payment as published in the funding profile, at the start of the financial year. MHCLG will not adjust its annual payments, regardless of what the board forecasts to spend that year.

The board can roll over any underspends from that financial year into the next financial year. Underspends will continue to automatically roll over until the final year of the programme, subject to two small parameters detailed below.

Funding cannot be drawn down from MHCLG earlier than the stated funding profile although the accountable body can advise places on how to leverage investment against the 10-year funding profile.

The accountable body will be asked to submit an expenditure report and a forecast to MHCLG every six months. Forecasts should be credible and deliverable. Further detail on what information is required as part of the monitoring return can be found in the monitoring guidance.

To ensure the Programme maintains momentum throughout delivery and demonstrates tangible change for communities as soon as possible, boards must have consideration for the following parameters:

• within each investment period, the board should spend at least 25% of the cumulative allocation for that investment period
• by the end of Year 7 (financial year 2032 to 2033 and the end of the second investment period), the board should have spent at least 50% of the cumulative total allocation

Where a place forecasts to spend less than these percentages in either their Pride in Place Plan or monitoring returns to the department, they may be asked to submit additional information to MHCLG to evidence that their forecast is credible and deliverable.

Assets

The accountable body and Neighbourhood Board should ensure that assets which are purchased or refurbished using funding from the programme are used on a long-term sustainable basis for the benefit of the community according to local priorities which may change over time. Where assets are sold or transferred to an alternative use during the programme lifetime, MHCLG must be alerted at the earliest opportunity and reasonable efforts should be made to ensure that use of funds, or future use of the asset, continues to be for the benefit of the place and local residents.

Publicity and branding

Management costs funding can also be used for branding and publicity activity. Branding and publicity play a key role in effective promotion of Pride in Place locally, ensuring the community is engaged and people can have their say throughout. The Pride in Place logo should be used on public-facing materials such as print, digital content, signage, events and media activity.

The prominence of the logo should reflect the level of UK Government funding, with more prominent placement where Pride in Place is the main funder (usually top left). Where projects relate to a specific area, postcode-specific logos should be used. 

Accountable body role and responsibilities

Accountable body role

Decision-making will be led by the Neighbourhood Board, with the local authority acting as the accountable body for the funds (unless otherwise agreed with MHCLG).

The accountable body should:

• work closely with their place’s Neighbourhood Board and local MP to develop and embed appropriate processes and controls for funding
• develop mechanisms that will empower the Neighbourhood Board in realising their role and driving forward a community-led vision for change
• facilitate the development of a place’s Plan and its delivery while recognising the role of the Neighbourhood Board as decision-making forum

This may include providing advice and support on legal duties (for example, impact assessments), supporting meaningful community engagement or helping Board members navigate those requirements with which they may be less familiar, in the spirit of true partnership working.

The accountable body has ultimate responsibility for ensuring that public funds are distributed fairly and effectively, and that funds have been managed in line with the Nolan Principles, Equality Act 2010, public sector equality duty, data protection and Managing Public Money principles. The accountable body is also responsible for compliance with legal responsibilities in relation to subsidy control, state aid and procurement.

There may be occasions when the accountable body informs the board that an investment cannot be made due to financial governance or regularity issues identified during their compliance checks. In such cases, the accountable body should clearly explain to the board the basis of the concerns, including an assessment of whether any potential mitigations that could be put in place to allow the investment to proceed.

Any disagreement between accountable bodies and Neighbourhood Boards about the application of principles, duties and legal responsibilities, which cannot be resolved locally, should be raised with the MHCLG Delivery Manager.

All places in the programme should move towards community-led delivery models by the end of year three of the programme. This pathway will vary in different places – a Neighbourhood Board could for example, transition into a community interest company, community benefit society or charity, or an existing community organisation could act as an anchor organisation and take on delivery responsibility.  This may also lead to a change in the accountable body.

MHCLG’s Communities Delivery Unit will work with the Neighbourhood Board and local authority to support this transition and provide advice on governance arrangements.

Subsidy control/ state aid

Subsidy control and state aid responsibility

MHCLG will provide funding for a general purpose. The onward award of funding and the substantive design of potential public subsidies will be the responsibility of the accountable body. All accountable bodies must comply with the Subsidy Control Act 2022 when administering public money under the programme. Accountable bodies should familiarise themselves with the Subsidy Control Act and the statutory guidance which is updated periodically.

The Community and Regeneration Streamlined Route was created by DBT and MHCLG to help public authorities deliver subsidies on programmes like the Pride in Place Programme. It came into effect in January 2026.

You can read the terms and conditions of the Community and Regeneration Streamlined Route and the accompanying guidance: Subsidy Control Act 2022: Streamlined Routes. 

For any questions public authorities can request support and guidance from the DBT subsidy control team at: subsidycontrol@businessandtrade.gov.uk. 

State aid

Any subsidy provided in Northern Ireland will have to comply with either the European Union’s state aid rules or with the UK Government’s subsidy control regime.

Article 10 of the Windsor Framework  notes that state aid rules will apply to the UK in limited circumstances.

Non-compliance with subsidy control or state aid law

Accountable bodies may need to recover funding from project deliverers where subsidy control or state aid law has not been complied with.

Where an application presents an unacceptable risk of non-compliant delivery, then an accountable body may choose to either reject it or require adjustments to be made such that funding the project will not contravene subsidy control.

Accountable bodies should ensure that any project deliverers manage subsidy control or state aid in line with their agreed approach and take steps to monitor this. They should ensure that project agreements are designed to enable the recovery of subsidy or state aid if it has been misused.

It is also recommended that project deliverers ensure that project partners are aware of their obligations and that they can recover funding from them if it is not compliantly managed or is misused.

Public procurement

For Pride in Place, we agreed spending flexibilities with HMT and No10 that materially changes how funding operates on the ground. These include shifting from arrears-based reimbursement to upfront start of year payments; allowing year to year budget rollovers; and moving from one-year cycles to more stable multi-year settlements. These changes are aimed at substantially reducing administrative friction, improving cashflow stability, and unlocking earlier action for small community organisations.

Decisions on Pride in Place procurement taken by local authorities, where they remain the accountable body, should be taken with these principles in mind: the scheme aims to empower and liberate communities to take control of their Pride in Place programmes.

Accountable bodies will be responsible for ensuring that all funding is managed in accordance with relevant legislation, including but not limited to: Procurement Act 2023, Procurement Regulations 2024, Public Contracts Regulations 2015,  Public Contracts (Scotland) Regulations 2015, Northern Ireland Public Procurement Policy and Public Services (Social Value) Act 2012.

The Pride in Place Programme requires local authorities, in their capacity as the accountable body, to adhere to the procurement legislation. In carrying out this duty, we encourage the accountable body to give appropriate consideration to the spirit of the programme, ensuring that processes are not disproportionately burdensome. Funding decisions are to be determined by the board, acting as representatives of their community, and local authorities should seek to facilitate these decisions as far as possible within the bounds of legislation.

Fraud risk responsibility

As funding to deliver the Pride in Place Plan will likely take the form of onward awards to other delivery organisations, accountable bodies will be responsible for ensuring that fraud is a key consideration in all spend activity and that the following minimum standards are met:

• follow the Grants Functional Standards on Fraud Risk Assessment (FRA) – ‘7: Risk, Controls and Assurance (PDF)’ pages 15 to 19

• undertake fraud risk assessments at an appropriate level to each individual project dependent on risk

• ensure that Pride in Place spend is undertaken in accordance with effective authority fraud prevention policy and procedure, and via engagement with colleagues specialising in this area

• ensure that relevant evidence and data to prevent fraud is gathered as part of due diligence undertaken ahead of releasing funds

• implement reporting and monitoring requirements that will identify irregularities or issues in use of funds which can be investigated further

• store and file all work undertaken on FRA in the event of any issues or audit requirements

MHCLG may request to see work related to fraud risk assessment where it has concerns about how funds are being administered.

Programme assurance

Programme assurance will involve three lines of defence, as set out below.

First line of defence

The first line of defence will be provided by the local authority, as accountable body, and is the responsibility of their Chief Finance Officer as they act at an operational management level within the local authority in receipt of the funding. They must follow the appropriate legislation for the area they are based in:

• England and Wales: section 151 of the Local Government Act 1972, section 73 of the Local Government Act 1985, and section 127 of the GLA (Greater London Authority) Act 1999

• Scotland: section 95 of the Local Government (Scotland) Act 1973

• Northern Ireland: section 1 of the Local Government Finance Act (Northern Ireland) 2011

The Chief Finance Officer will be required to submit an annual statement of grant usage to MHCLG. This will provide written confirmation that they have undertaken to actively apply all the necessary checks to ensure proper administration of its financial affairs regarding the funding programme, particularly in respect to financial administration and transparency of governance.

Where an alternative accountable body arrangement for a place has been agreed with MHCLG, appropriate first line defence arrangements will be agreed as part of the accountable body transition process.

Second line of defence

The second line of defence is the responsibility of MHCLG and will be undertaken by MHCLG. We will undertake a range of checks, on a risk and sample basis. Local authorities, or other organisations where an alternative accountable body arrangement for a place has been agreed with MHCLG, will be required to engage with us and support the process.

Third line of defence

The third line of defence will be carried out by MHCLG’s independent auditors which will review the activity completed by MHCLG for the second line of defence and liaise with internal audit teams operating within devolved governments as appropriate.

Change management

MHCLG will take a proportionate approach to changing local priorities and delivery. In the first investment period (2026-27 to 2029-30), MHCLG approval only needs to be sought when a place proposes to make material changes to the delivery priorities outlined in their Pride in Place Plan or the agreed boundary for their place.

Changes that fall beneath the ‘material change’ thresholds defined below do not require MHCLG approval but should be reflected in routine monitoring reports. If the thresholds are crossed, requests for such material changes should be made to PiPPcorrespondence@communities.gov.uk before the change occurs.

For the purposes of the Pride in Place first investment period, a material change is: 

• a proposed change to the boundary of a place

• the funding of activity which does not fit within the pre-approved Pride in Place Programme indicative interventions 

• the transition to a community-led governance and/or delivery model  

• change to the accountable body for a place’s allocation    

Proposed changes to a boundary will only be considered where there is a strong case for such change and the place can evidence that the change is essential for maximising the impact of delivery and will benefit residents within the original place boundary.  

Requests for a material change may be submitted to the department by the Neighbourhood Board or the accountable body, via their MHCLG Delivery Manager in the first instance. The following questions will be asked as part of MHCLG’s consideration of any material changes:

• has the Neighbourhood Board and local authority’s Chief Finance Officer (and MP in the case of boundary changes) agreed that the requested change is necessary and deliverable 

• can you confirm that you have considered the risks and issues that arise from the requested change, and the management and mitigation of those risks and issues including e.g. risks, public sector equality duty, subsidy control/state aid/procurement 

• can you confirm that you have sufficient capability and capacity to manage the impact of the requested change 

For a requested change of boundary, we will also ask you to: 

• confirm the rationale for any changes you wish to make to the boundary for this programme and set out how those changes will help to deliver the programme’s objectives
• state the proposed boundary’s population and how it compares to the population of the default geographic boundary
• confirm that the proposed boundary meets the parameters set out in this guidance 

For a requested introduction of ‘off menu’ activity, we will also ask you to: 

• confirm why the activity cannot fit within the pre-approved indicative interventions
• confirm how proposed activity will deliver against the Pride in Place Programme objectives outlined in the Prospectus and meet programme eligibility criteria as outlined in the Pride in Place: delivery guidance

For a requested change to the governance/delivery model in the place, the department will set out in further detail what information is required from you following the initial discussion with the MHCLG Delivery Manager and the request for a change.

Performance management

Neighbourhood Boards will have a primary point of contact in MHCLG’s Communities Delivery Unit who will work with them to deliver high-impact, long-lasting local change. Monitoring information will allow MHCLG Delivery Managers to better understand progress and provide effective practical support across government to help places achieve their delivery goals.

A formalised progress review will take place at the end of each investment period. These review points will allow MHCLG to consider whether the programme’s three strategic objectives are being delivered effectively and how a place’s expenditure is progressing against their forecast.

Programme monitoring

Our monitoring process is designed to be light touch while ensuring that we have the right information we need to support places, demonstrate good value for money for the taxpayer and understand progress across the programme.

Pride in Place Programme reporting must be completed by the accountable body online using a MHCLG digital tool – we will ask for a monitoring return every six months, one in April and one in October. It is the responsibility of the accountable body to complete the monitoring return.

In April each year the accountable body will be asked to submit details of:

• management costs
• projects delivered using programme funding
• projects planned using programme funding
• Neighbourhood Board details
• forecast capacity funding spend (phase 1 only)
• forecast programme delivery funding spend
• outputs

For the mid-year return in October the accountable body will not need to forecast capacity funding spend, programme delivery spend or provide details on outputs.

Full monitoring guidance, including exactly what accountable bodies will be asked, is available at: Pride in Place Programme: monitoring guidance.