Research and analysis

North of Tyne 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. It provided £2.6 billion funding for local investment by March 2025, with an additional £900 million available for 2025-26. Local decision-makers worked with their local communities and partners to deliver interventions under three investment priorities: Communities and Place, Supporting Local Businesses, and People and Skills. UKSPF empowered places to identify and build on their own local strengths and needs, with a focus on enhancing community pride and increasing life chances.

The North of Tyne (NoT) area (comprising Newcastle, Northumberland and North Tyneside local authorities) received £47.1 million of UKSPF funding to cover the three-year delivery period from 2022–2025, and an additional £16 million for the 2025/2026 ‘transition year’. The NoT has a geography characterised by a mix of urban, rural and coastal landscapes. At the point of securing UKSPF funding, the three local authorities formed the NoT Combined Authority (NTCA, or Combined Authority, CA). However, in 2024, NTCA dissolved, and 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 NoT area only.

Key impact evaluation findings

Communities and Place

Improved perceptions of place

The UKSPF Communities and Place activity aimed to restore local community pride, by funding improvements to public places, such as its interventions to improve town centres and high streets. Positive change was observed in the Community Life survey on the extent of pride in living in the three local authorities within the NoT region, but these findings cannot be directly attributed to UKSPF. Local evaluation evidence suggested that interventions contributed to an increased sense of pride. This was as a result of physical improvements to local spaces, but also via other activities (e.g. events, community-led initiatives and volunteering) funded by UKSPF.

Improved facilities

Evidence indicates that areas in NoT have achieved visible regeneration and improved public spaces through targeted UKSPF investment, collaborative delivery, and a focus on ensuring accessibility and sustainability. The research indicated that regeneration of buildings, and improvements to existing buildings, infrastructure and community places contributed to improved perceptions among the community. However, the full impact will become clearer as more projects are completed and further evidence is gathered.

Supporting Local Businesses

Business births

A key element of the NoT’s Supporting Local Business activity was to boost the number of business start-ups and social enterprises. It aimed to do this by funding business support activity, thus enabling entrepreneurs to access tailored support (e.g. relating to developing business models, undertaking research, marketing) and funding for starting up their business. The NoT’s UKSPF Supporting Local Businesses activity supported the creation of at least 180 early-stage enterprises (as of June 2025) and interviews with programme team stakeholders and delivery providers involved in supporting start-ups across the area indicated success was achieved through using a mix of non-financial and financial support.

Business growth

Financial and non-financial support provided to local businesses aimed to help entrepreneurs and businesses address gaps in knowledge or expertise to develop their business plan, or invest in facilities, equipment or other relevant activities. Over 1700 enterprises received non-financial support, and 363 received grants. The evaluation found that businesses have benefitted from both types of support, with evidence of financial and non-financial provision leading to growth in enterprises’ profile, increases in turnover, and expansion of premises.

People and Skills

Increased skills

The North East is a key leader in the UK’s move to Net Zero, driven by local renewable energy and retrofit industries. Through its UKSPF Local Investment Plan, the CA invested in skills development for these sectors, including taster sessions for those not in work or education, management training, and wind energy safety qualifications. MI data showed strong results: by June 2025, 180 people retrained (600% above target), and 232 gained qualifications (219% of target). Delivery provider and beneficiary research highlighted how interventions enabled people to develop their skills.

Key economic evaluation findings

The UKSPF programme in NoT demonstrated adequate-high value for money across the 4Es framework.

• Economy - High: NoT achieved good value for money in terms of economy by attracting a sufficient and competitive pool of suppliers, using robust procurement and award processes, managing delivery proactively to stay on budget and on time, and ensuring that total expenditure matched the allocated budget. These practices collectively ensured that public funds were used efficiently and effectively for local benefit.
• Efficiency - High: UKSPF interventions in NoT largely met or exceeded initial output targets, although there remained some underachievement of targets in the Supporting Local Business investment priority. The programme also effectively combined UKSPF with other funding sources (e.g. NTCA Investment Fund, Towns Fund, local authority and private sector contributions), adding value to support areas’ existing regeneration programmes and master plans.
• Effectiveness - Adequate: There was strong evidence of success for many interventions, but there was some variation across investment priorities. Extensive consultation and partnership approaches ensured interventions were designed to meet local needs. Flexibility allowed delivery providers to adapt activities in response to feedback, keeping provision aligned with evolving needs.
• Equity - Adequate: Overall, the equity assessment of the UKSPF investment in NoT demonstrates an adequate level of value for money. The interventions were well-targeted to different groups to support the CA’s vision of building an inclusive economy. It was harder to validate actual reach given limited data, although qualitative evidence suggests that delivery providers generally reached the groups they were aiming for.

Key learning

The following key learning and lessons have been identified, which will support design and delivery of future local growth funds:

• Co-design and stakeholder engagement: Extensive consultation and collaboration in developing the Local Investment Plan ensured the NoT’s UKSPF programme addressed local needs. Ongoing feedback led to continuous adaptation of activities, supporting greater effectiveness over time.
• Proactive and collaborative management: The combined efforts of the CA and local authorities enabled timely problem-solving and effective, on-budget delivery of interventions. This partnership approach was widely praised and is recommended for future programmes.
• Allowing sufficient timescales for delivery: Delays in funding decisions and guidance from Central Government created tight delivery timelines. Future programmes should provide prompt communication and clear guidance to maximise local areas’ chance of success.