Research and analysis

Gateshead UKSPF evaluation: impact and value for money findings – executive summary

Updated 28 August 2026

Applies to England

Introduction

The UK Shared Prosperity Fund (UKSPF) was launched by the UK Government in April 2022, providing £2.6 billion for local investment by March 2025, with an additional £900 million for 2025–26. Local decision-makers worked with communities and partners to deliver interventions under three investment priorities: Communities and Place, Supporting Local Businesses, and People and Skills. UKSPF empowered places to build on local strengths and needs, focusing on enhancing community pride and increasing life chances.

Gateshead, the largest borough in Tyne and Wear, received £11.6 million UKSPF funding across the three priorities: Communities and Place (£5.8 million), Supporting Local Businesses (£3.3 million), and People and Skills (£1.9 million), plus £4.5 million for 2025/26. Fifty-two projects were supported in the initial three years.

Gateshead is the 47th of 317 most deprived local government authorities in England, with 32,000 (16%) of its population living in one of the 10% most deprived areas in the country. Gateshead also has a higher-than-average rate of crime and disorder and has experienced increased levels of youth-related anti-social behaviour in town centres. Additionally, Gateshead’s main town centre has seen a decline in its vitality and economic health. UKSPF funding was used to address some of these issues.

At the point of securing UKSPF funding, Gateshead operated as a single local authority. However, in 2024, a new North East Combined Authority (North East CA) was established. This united the North East local authorities of County Durham, Gateshead, Newcastle, North Tyneside, Northumberland, South Tyneside and Sunderland, alongside the Local Enterprise Partnership, Transport North East and Invest North East. This evaluation focuses on activity in the Gateshead area only.

Key impact evaluation findings

Communities and Place

Improved perception of place

UKSPF funded improvements to public places across Gateshead, including the town centre, Railway Quarter, libraries, and green spaces such as the Tyne–Derwent Way. The Community Life Survey (CLS) showed an increase in pride in Gateshead (from 49% to 54%), though direct attribution to UKSPF is not possible. However, robust local evaluation of projects like Tyne Derwent Way and Transforming Libraries found positive feedback from residents, with improved perceptions of local spaces and increased community attachment. These outcomes were achieved through targeted investment in physical improvements and community-focused activities, delivered across the borough.

Improved facilities

Refurbishment of facilities, notably four libraries, led to widespread positive perceptions among users. Interim evaluation findings highlighted that the improvements encouraged greater use and created more welcoming, flexible community spaces. This was achieved by investing in infrastructure and responding to local needs for accessible, high-quality facilities.

Increased community engagement

UKSPF supported a significant number of community engagement opportunities, including youth provision, arts activities, and outdoor events. By March 2025, 597 local events or activities were delivered in Gateshead using UKSPF (target: 123), reaching 4,226 people (target: 1,198). Projects such as Integration Station and Tyne Derwent Way fostered participation, social bonds, and volunteering, particularly among marginalised groups. The open-call commissioning model enabled localised, tailored provision, which was key to this success.

Increased volunteering

A total of 232 volunteering opportunities were created with UKSPF (target: 50), with key contributions from Tyne Derwent Way, Volunteer It Yourself, and the Arts Development project. The proportion of residents volunteering in Gateshead rose from 31% to 36% between 2023-2025 as evidenced in the Community Life Survey. Volunteers played a critical role in delivering activities, and projects specifically targeted young people and marginalised groups for volunteering opportunities. This was achieved through capacity building, training, and support for local organisations.

Supporting Local Businesses

Business growth

UKSPF supported the creation of 420 jobs (target: 161), enabled 50 enterprises to enter new markets (target: 20), and helped establish 113 new businesses (target: 88). Case studies highlighted growth among sole traders and small businesses, with tailored support filling gaps in mainstream provision and reaching underrepresented groups.

Increased innovation

A total of 141 businesses adopted new technologies or processes (target: 24), with a strong emphasis on digital skills and online presence. Projects such as Digitalising our Town Centres and Immex City enabled businesses to implement new tools, improve productivity, and access new markets. Case studies demonstrated the impact of digital audits, mentoring, and sector-specific support.

Jobs created

The creation of 420 jobs was a direct result of business support, mentoring, and grant funding through UKSPF. Businesses reported increased capacity and confidence to hire new staff, with networking and collaboration opportunities further supporting growth.

People and Skills

Employment

496 economically inactive individuals engaged with keyworker support services (target: 210), and 104 secured employment (21% job outcome rate) in UKSPF supported projects in Gateshead. The keyworker model provided tailored, intensive support, helping participants overcome barriers and progress towards employment. Case studies illustrated positive journeys for participants with complex needs, including care leavers and those with health challenges.

Improved employability

204 people reported increased employability through development of interpersonal skills (target: 120). Projects prioritised confidence-building, social interaction, and volunteering as first steps towards employment. The Game Academy project, for example, improved self-confidence and teamwork skills among young people entering the digital sector.

Skills development

143 individuals gained a qualification or completed a course, and 209 achieved basic skills (target: 89). Digital skills development was a particular focus, with sector-specific projects addressing local labour market needs. Delays in course completions meant some outcomes will be realised in the transition year.

Key economic evaluation findings

The UKSPF programme in Gateshead demonstrated high value for money across the 4Es framework:

• Economy – High: Gateshead’s use of open call commissioning and robust procurement processes attracted a strong and diverse field of suppliers, ensuring competitive selection and high-quality delivery. Proactive management by external funding officers enabled the council to respond flexibly to delivery challenges, including reallocation of underspend between priorities. As a result, total expenditure was closely aligned with the available budget, maximising value for money and ensuring that funds were used efficiently to deliver intended outcomes.
• Efficiency – High: Most output targets across all investment priorities were met or exceeded, demonstrating strong conversion of resources into tangible results. Unit costs for business support and employment outcomes were in line with, or better than, national benchmarks, indicating cost-effective delivery. Gateshead also successfully combined UKSPF with other funding sources, such as match funding for key projects, further enhancing the scale and impact of interventions.
• Effectiveness – High: Most outcome targets were achieved or surpassed, with interventions closely aligned to local needs and priorities identified in the investment plan. Tailored, localised provision was central to supporting disadvantaged groups and delivering meaningful change. Stakeholder feedback and monitoring data confirmed that UKSPF-funded activities made a significant contribution to employment, business growth, and community engagement in Gateshead.
• Equity – High: Interventions were well-targeted to disadvantaged and priority groups, with postcode analysis confirming strong coverage of the most deprived areas in Gateshead. The open call process enabled a diverse range of projects to address specific local needs, including support for marginalised communities and underrepresented business groups. However, the absence of detailed beneficiary demographic data limited the ability to fully verify reach and impact, though qualitative evidence suggests that the programme was broadly successful in targeting those most in need.

Key learning

The following key lessons have been identified, supporting the design and delivery of future local growth funds:

• Flexibility and adaptability – The ability to reallocate funds and adapt to changing circumstances was crucial in addressing delivery challenges and maximising impact.
• Proactive management – Dedicated external funding officers and regular performance reviews were instrumental in mitigating risks and ensuring effective use of funds.
• Collaboration and networking – Opportunities for delivery organisations to interact and collaborate enhanced support for participants and fostered a sense of community.