In a significant shift, East Devon District Council finds itself in a challenging position as business growth funding dries up, marking a departure from its historical role as a financial supporter of local enterprises. This development is a direct consequence of changes in government funding, specifically the loss of the UK Shared Prosperity Fund (UKSPF) and rural funding streams.
The UKSPF, which replaced the European Structural and Investment Programme, is now being replaced by the Local Growth Fund, likely to be directed towards mayoral city regions, and the Pride in Place Programme, which targets the most deprived neighbourhoods across the country. This means that East Devon, along with other areas of Devon, will no longer receive central government support for economic activities.
The Impact on East Devon
The implications of this funding gap are far-reaching. East Devon has traditionally relied on these funds to support its economic development, with previous years seeing significant investments in the region. For instance, in the 2024/25 financial year, East Devon secured over £1.14 million in UKSPF funding and an additional £640,000 from the Rural England Prosperity Fund. However, this support has now dwindled to zero.
This change in funding landscape has prompted East Devon to adapt its economic development strategy. The council has shifted its focus from being a funder to an enabler, aiming to facilitate economic growth through other means. This includes becoming more actively involved in the commercial property market and engaging more closely with town centres.
A Broader Perspective
What makes this particularly fascinating is the broader context of post-Brexit funding shifts. The replacement of EU funding with UK-specific funds is a complex process, and the impact on local economies is a critical aspect of this transition. In my opinion, it raises questions about the equitable distribution of resources and the potential challenges faced by regions that were previously supported by EU funding.
Furthermore, the focus on mayoral city regions and deprived neighbourhoods in the new funding schemes could potentially leave other areas, like East Devon, feeling neglected. This shift in funding priorities might also impact the council's ability to support innovative projects and initiatives that drive economic growth and resilience.
Looking Ahead
Despite these challenges, there is a glimmer of hope. Councillor Paul Hayward's positive outlook and recognition of the economy team's efforts are encouraging. The council's commitment to working together to boost the economy is a step in the right direction. However, it is essential to acknowledge that the road ahead is not without its obstacles, especially with the changing retail landscape and the challenges faced by high streets across East Devon.
In conclusion, the loss of business growth funding in East Devon is a significant development with far-reaching implications. It highlights the complex interplay between local economies and government funding, and the need for innovative strategies to navigate these challenges. As we move forward, it will be interesting to see how East Devon adapts and thrives in this new economic landscape.
