Stuart Anderson MP is devastated that the government has decided to pull the plug on a long-standing funding scheme that has helped to unlock economic growth in rural areas like South Shropshire.
This is despite Government Ministers admitting that overall productivity in the most rural areas is typically lower than urban areas and is only 82% of the average for England - excluding London.
Stuart Anderson MP said:
"As part of my plan to unleash rural prosperity in South Shropshire, I want to ensure that our local communities get a fair share of funding to thrive in the years ahead with improved infrastructure and enhanced public services. So, I am greatly disappointed that the government has decided to end the UK Shared Prosperity Fund (UKSPF) in March 2026 without having anounced an equivalent replacement for rural areas. This includes the Rural England Prosperity Fund (REPF), which acted as a rural top-up to help address the additional needs and challenges that face rural areas like ours in South Shropshire. It is the latest example of the government deliberately redirecting money to inner cities."
Created by the last government, the UK Shared Prosperity Fund (UKSPF) replaced the European Regional Development Fund following the UK's departure from the EU.
It was introduced in April 2022 to uphold the last government's commitment to match EU structural funding across the UK - including in rural communities.
The programme included the Rural Prosperity Fund (RPF), which acted as a top up to support rural areas given the specific challenges that they often face.
Together, it has seen more than £12 million invested in Shropshire - with £2.6 million to support local businesses, farms, and community infrastructure through the rural prosperity top-up.
It funded capital projects for small businesses and community infrastructure, helping to improve productivity and strengthen the rural economy by supporting local jobs.
Stuart made unleashing rural prosperity in South Shropshire a top priority during his General Election campaign, which includes tackling the rural productivity gap.
Last year, Stuart secured an extension to the scheme for a further year, despite it being reduced to £900 million for local authorities including Shropshire Council.
This year, the government has decided to scrap the scheme and replace it with a "transitional arrangement" that will allow local authorities to invest in local growth.
The Ministry of Housing, Communities and Local Government (MHCLG) said that this will introduce a "long-term approach to local funding" that supports the the Government's Kickstarting Economic Growth Mission.
It subsequently announced plans to create a new Local Growth Fund in the Spending Review, which was delivered by Chancellor Rachel Reeves in July 2025.
Further details were released in November 2025, with the funding allocations for eleven mayoral city regions in the North and the Midlands, which it says has the "greatest potential for productivity catchup and agglomeration."
Ministers have added that "no plans to directly replace" the scheme in rural areas like Shropshire, which do not have a Mayoral Combined Authority.
In his letter to Ministers, Stuart said:
"Local organisations like Visit Shropshire have delivered highly impactdul programmes that have significantly strengthened our visitor economy, improved local infrastructure, and delivered vital support to local businesses and our high streets. I know that they remain fully committed to driving economic growth and delivering on these priorities. However, the government must urgently confirm a replacement funding mechanism for non-Mayoral areas that ensure rural counties like Shropshire are not unfairly penalised and provides clarity on transitional arrangements so that local partners can effectively plan beyond March 2026."
