West Midlands UKSPF Funds Bypass Direct Business Support, Focus on Communities

London, United Kingdom — 26 September 2024

The West Midlands Combined Authority (WMCA) has outlined its strategic deployment of an £88.4 million United Kingdom Shared Prosperity Fund (UKSPF) allocation, revealing a reduced emphasis on direct 'Supporting Local Businesses' interventions within its core programme. While an initial £46.3 million was earmarked for business support, the WMCA has confirmed a locally commissioned evaluation is specifically covering this investment priority, effectively decoupling it from the main place-based evaluation and implying a different route for accessing these funds.

The primary focus of WMCA's internal UKSPF evaluation will centre on seven distinct interventions, predominantly falling under the 'Communities and Place' priority (£25.6 million) and one under 'People and Skills' (£16.4 million). This strategic choice reflects WMCA's intent to address regional challenges such as poverty, inequality, and 'left behind places', while leveraging strengths in local civil society and growth areas like low carbon tech. Supplement industry operators seeking direct grants for business expansion or skills development must note this redirection, as the core UKSPF pipeline will not be their primary avenue for funding.

The methodology for evaluating these interventions will rely heavily on contribution analysis due to the dispersed nature and small scale of many community-based projects, making traditional Quasi-Experimental Design (QED) unfeasible. This evaluation will draw upon management information, stakeholder, and beneficiary qualitative research, alongside secondary data. The evaluation's purpose is to assess relevance, efficiency, and effectiveness of fund design rather than quantifying direct economic impacts attributable to specific projects within the framework, particularly for businesses.

What this means for United Kingdom

Supplement manufacturers and brand owners in the West Midlands must recognise that direct UKSPF grant funding for business growth or general skills development is not a primary focus of the WMCA's core allocation. Businesses should explore the specific 'locally commissioned evaluation' for 'Supporting Local Businesses' to understand its mechanisms. Instead of broad-brush applications, manufacturers should seek opportunities that align with 'Communities and Place' initiatives, such as local infrastructure improvements or social impact projects with specific MOQs and compliance requirements. Operators should also monitor alternative local authority-specific funding for skills, potentially allowing for grants linked to training programmes, which are now being sponsored by the Adult Education Budget, National Skills Fund, and Multiply. This refined focus demands manufacturers strategically target specific, smaller-scale projects or external funding streams rather than expecting direct enterprise-level UKSPF grants.

The decision to fund skills interventions from other sources (Adult Education Budget, National Skills Fund, and Multiply) indicates a more targeted approach for the remaining £16.4 million allocated to 'People and Skills'. This suggests that specific skills gaps identified by WMCA, such as digital proficiency, may receive dedicated funding, allowing supplement businesses to potentially access support for upskilling their workforce provided their needs align precisely with these predefined priorities. The emphasis on inclusion and social mobility also opens avenues for businesses to engage with community groups for partnership projects that meet social impact criteria.

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