\n However, that marks a clear shift from the UK Shared Prosperity Fund, which the LGF replaces.\n<\/p>\n
\n Under that scheme, capital spending \u2013 buildings and infrastructure \u2013 made up just 23\u201328% of funding for Scottish local authorities, leaving far more available for frontline services.\n<\/p>\n
\n Earlier this week, we told how third sector organisations and business groups across Glasgow were already being impacted<\/a> by the change and had started issuing 90-day redundancy notices to staff as a result.\n<\/p>\n \n While Scotland\u2019s version of the LGF is predominantly focused towards capital from the start, the English model begins with a largely revenue-funded settlement \u2014 before shifting towards capital later in the programme.\n<\/p>\n \n A UK Government methodology note for Scotland<\/a> setting out the total LGF budget for 2026\u201327 to 2028\u201329 shows capital allocations of \u00a336.3m out of \u00a352.1m in 2026\u201327, around 70%, \u00a333.9m out of \u00a349.4m in 2027\u201328, around 69%, and \u00a327.4m out of \u00a338.4m in 2028\u201329, around 71%.\n<\/p>\n \n The contrast with England is set out in the UK Government\u2019s LGF policy statement, which publishes allocations for 11 Mayoral Strategic Authorities across the North and Midlands.<\/a>\n<\/p>\n \n National totals show England\u2019s fund starts with \u00a350m capital out of \u00a3202m total in 2026\u201327, about 25%, rising to \u00a376m out of \u00a3211m in 2027\u201328, about 36%, and \u00a3151m out of \u00a3262m in 2028\u201329, about 58%.\n<\/p>\n \n In Greater Manchester, for example, the LGF allocation in 2026\u201327 is split \u00a324 million revenue and \u00a38 million capital, meaning three-quarters of the funding can be used for day-to-day programmes.\n<\/p>\n \n In 2027\u201328, it\u2019s \u00a321m revenue, \u00a312m capital, before flipping in 2028\u201329, when capital, \u00a324m, overtakes revenue, \u00a317m.\n<\/p>\n \n \n A similar pattern applies in the West Midlands, England\u2019s single largest recipient. Its \u00a332m allocation in 2026\u201327 comprises \u00a324m revenue and \u00a38m capital.\n<\/p>\n \n The split moves to \u00a321m revenue and \u00a312m capital in 2027\u201328, before switching in 2028\u201329 to \u00a324m capital, \u00a318m revenue.\n<\/p>\n \n In a briefing, the Industrial Communities Alliance<\/a> said the shift \u201ctakes a sledgehammer\u201d to revenue-funded services currently supported by UKSPF.\n<\/p>\n \n It also argues the new structure risks job losses, estimating that UKSPF spending directly supports an average of seven local authority jobs per \u00a31m of funding, and that around 530 council jobs across Scotland are presently supported by the programme.\n<\/p>\n \n A senior Glasgow source told The Herald: \u201cThe questions we urgently need answered are why this funding deal hammers Scottish businesses, third sector groups and employability schemes while our peers south of the border are spared, and what role the Secretary of State for Scotland has had in this.\n<\/p>\n \n \u201cEither Douglas Alexander fought to retain the support for getting people in our hardest-pressed communities into work and he\u2019s lost. Or he\u2019s prioritised photo opportunities which he reckons can help Labour politicians save their skins. Either way, it\u2019s rank incompetence and our communities suffer.\n<\/p>\n \n \u201cThe Secretary of State must wake up to the fact that his decisions are going to be damaging businesses and putting people out of jobs.\u201d\n<\/p>\n \n A Labour source hit back at the council and the Scottish Government.\n<\/p>\n \n \u201cThe blame for Scotland\u2019s local government funding crises lies firmly at the SNP<\/a>-led Scottish Government\u2019s door,” they said. “Susan Aitken should be asking John Swinney<\/a> why the SNP-led Scottish Government has over decades centralised powers while cutting funding levels for Scottish local government.\n<\/p>\n \n \u201cIt is simply wrong to suggest that the UK Government is cutting funding for the Glasgow City Region. Taken together our package of four new local growth programmes will invest up to \u00a3103m in Glasgow City Region over the next three years, this is up to \u00a315m more than under the UKSPF levels in 2025\/26.\n<\/p>\n \n \u201cThanks to increased direct funding for local authorities in England the Scottish Government will receive an additional \u00a3163m over the next three years.\n<\/p>\nAndy Burnham is the mayor of Greater Manchester, where the majority of cash can be spent on revenue (Image: NQ)\n<\/p>\n