Research and analysis

Highland UKSPF evaluation: interim findings

Updated 3 December 2025

Applies to Scotland

Executive summary: Highland interim findings

Introduction

The UK Shared Prosperity Fund (UKSPF) provides a total of £3.5 billion of funding for local investment over 4 years (2022 to 2026), with all places in the UK receiving an allocation via a funding formula. Local decision-makers work with their local communities and partners to deliver interventions under three investment priorities: Communities and Place, Supporting Local Businesses and People and Skills.

This interim report presents the emerging findings from the place level evaluation of UKSPF in Highland, based on research conducted between December 2024 and March 2025. It outlines the progress made to date and presents interim evaluation findings.

Key process evaluation findings

Intervention design

• Implementation of UKSPF in Highland was shaped by a pragmatic and flexible approach, allowing for responsive decision-making within the constraints of tight delivery timelines.
• The timing of UKSPF intervention design coincided with local authority elections, limiting the involvement of newly elected members in funding decisions. To address this, funding was split evenly across the three priority areas.
• Highland Council built on pre-existing local priorities and interventions to leverage existing expertise and accelerate delivery.

Portfolio implementation

• Highland employed a mixed model for intervention delivery, utilising both internal council teams and external contracted delivery partners. The programme predominantly relied on internal council delivery teams to coordinate delivery, facilitating rapid mobilisation.

Intervention delivery

• Strong internal and external partnerships supported effective delivery, leveraging existing expertise and networks.
• Delegation of authority to reallocate funds across projects enabled the council to respond flexibly to emerging needs and underspend risks. However, tight spending deadlines posed a challenge, impacting project planning and implementation, particularly for multi-year projects.
• Staff capacity constraints within the council and higher-than-anticipated rural delivery costs for one intervention presented operational challenges.

Data collection and monitoring

• Highland Council employed a structured approach to data collection and monitoring, combining internal progress reviews, reports from external providers, and quality assurance checks.
• Difficulty with use of the MHCLG reporting app was reported and timely support was difficult to access. This, along with short reporting submission windows, were identified as challenges.

Programme oversight

• Governance structures followed established Highland Council frameworks, with reporting to the Economy and Infrastructure Committee and the City Region Deal Monitoring Group.

Multiply

• Multiply provision was commissioned through a Challenge Fund process.
• Provision was thought to have complemented support provided by employability services, however short-term funding and lower-than-anticipated take-up had presented challenges for delivery.

Progress to date: expenditure, outputs and outcomes

Highland Council has received £7.8 million of UKSPF funding to cover a 3-year delivery period of 2022 to 2025. People and Skills received the largest allocation totalling £4.8 million (61%), followed by Supporting Local Businesses with £1.8 million (23%) and Communities and Place with £0.9 million (12%). Including management fees, around £5.2 million was allocated to revenue expenditure, representing two thirds of total funding, with one third allocated to capital expenditure.

Highland Council’s expenditure on UKSPF has been phased, with 6% in year one (2022/23), 43% in year 2 (2023/24), and more than half (52%) in year 3 (2024/25). The initial years focused on setup and capacity-building with the majority of delivery and expenditure concentrated in the final year.

Monitoring data indicates strong progress overall in outputs and outcomes, particularly under the Supporting Local Businesses and People and Skills priorities. Many output targets are on track to be met or exceeded, including the number of businesses receiving support, job creation, and participation in training programs. Outcomes data show early signs of positive impact, including increased business sustainability, new enterprise creation, and individuals gaining employment following training. Progress under the Communities and Place priority has been more mixed, with some key output and outcome targets showing limited or no recorded progress. This is partly due to a time lag in reporting for projects still in progress. Future monitoring returns are expected to provide a more complete picture.

Early impact findings

Early impact evidence indicates progress in some areas, though further data is needed to fully assess outcomes. Notable early results include:

• Increased community engagement: The number of Communities and Place interventions initiated from funded feasibility studies exceeded expectations.
• Public realm improvements: The target for the total length of new and improved cycleways and footpaths has been fully achieved, as has the target for their increased usage.
• Business growth and productivity improvements: High levels of engagement with UKSPF business support mechanisms are evident, with targets for job creation and new enterprises met.
• Individuals upskilled in priority areas: Targets for the number of individuals attending green skills training sessions and receiving support to gain a vocational license were fully achieved.

Further research is needed to assess the impact on outcomes related to improved accessibility, community pride, a coordinated business support landscape, sustainable business practices, and improved tourism infrastructure. The outcomes and impact of UKSPF in Highland will be explored in more depth in the final evaluation report.