Dundee and Tayside are getting a £20 MILLION funding boost from a new Local Growth Fund

A new UK-wide funding programme has confirmed almost £20 million in investment for the Tay Cities region, with Dundee expected to play a central role in shaping how the money is used over the coming years.

The Local Growth Fund was launched on Thursday 8 January and will support projects across Scotland aimed at strengthening local economies and improving long-term prosperity.

The Tay Cities allocation totals £19.5 million and will be shared across Dundee, Perth, Angus and Stirling between 2026 and 2029. While the funding is regional, Dundee’s position as the area’s largest city places it at the heart of planning discussions around projects that could benefit communities across the east of Scotland.

The funding is designed to support initiatives such as infrastructure improvements, skills development and business support. In a Dundee context, this could complement ongoing efforts to grow the city’s creative, digital and life sciences sectors, as well as wider ambitions around regeneration, connectivity and employment opportunities.

Across Scotland, a total of £140 million has been allocated through the programme, with funding distributed to five regional groupings based on population size. Glasgow City received the largest share, followed by Edinburgh and the South East, with the Tay Cities region ranked third overall.

The fund was announced by Douglas Alexander, who said the approach would allow regional partners to decide how investment should be targeted to have the greatest local impact. Further details on specific projects and investment themes are expected later in the year once regional plans are developed.

Decisions on how the Tay Cities funding will be spent will be taken through the regional economic partnership, which brings together councils, education providers, businesses and third sector organisations. This collaborative approach is intended to ensure investment reflects local priorities and builds on existing strengths across Dundee and neighbouring areas.

More information on delivery and approved projects is due to be published in the first quarter of 2026, with local leaders expected to outline how the funding can support sustainable growth and improved living standards across the Tay region.