The strategy aims to give local people more control over how money is spent to improve their neighbourhoods.

The new investment is split into two main streams. The largest portion, up to £280m, will be shared among 12 local authorities over a decade to fund a wide range of regeneration projects in 14 specific areas. An additional £12m ‘Pride in Place Impact Fund’ will be distributed between eight local authorities over the next two years for smaller, community-led improvements such as new green spaces, play areas, and sports facilities.

This new funding extends the existing £200m ‘Plan for Neighbourhoods’ scheme announced earlier this year, which already supports ten Scottish towns. Early projects from that scheme include tackling empty shops in Elgin and installing more CCTV to combat anti-social behaviour in Peterhead.

The government’s plan, described by Prime Minister Kier Starmer as “renewal over decline, unity over division”, emphasises empowering local people over political dictation. Scottish Secretary Douglas Alexander added that the investment is part of a commitment to “a decade of national renewal for Scotland,” and that the government will work with local partners to deliver economic growth.

The announcement was welcomed by the Scottish Chambers of Commerce (SCC), which urged local authorities to work with the business community to maximise opportunities. Doug Smith, vice president of the SCC, commented: “The Scottish Chambers Network includes many hundreds of businesses members already operating across these cities and towns so there is a real opportunity to engage with local business communities to ensure that their knowledge and experience is used to ensure benefits of this funding are maximised.”

The new neighbourhoods receiving funding will be selected later this year, following a process involving the Scotland Office and local partners.

Allocations

Pride in Place: extended Plan for Neighbourhoods (new) – up to £20m each (£280m total)

• Aberdeen City
• City of Edinburgh
• Falkirk
• Fife x2
• Glasgow x2
• Highland
• North Ayrshire
• North Lanarkshire 
• South Ayrshire 
• South Lanarkshire 
• Na h-Eileanan Siar
• West Lothian 

Pride in Place Impact Fund (Pride in Neighbourhoods) (new) – £1.5m each (£12m total)

• Glasgow City
• West Dunbartonshire
• North Ayrshire
• Dundee City
• North Lanarkshire
• Inverclyde
• East Ayrshire
• Falkirk

Existing Plan for Neighbourhoods - announced Spring 2025 – up to £20m each (£200m total)

• Angus (Arbroath)
• Moray (Elgin)
• Orkney Islands
• Aberdeenshire (Peterhead)
• Dumfries & Galloway (Dumfries)
• North Ayrshire (Irvine)
• East Ayrshire (Kilmarnock)
• West Dunbartonshire (Clydebank)
• North Lanarkshire (Coatbridge)
• Inverclyde (Greenock )