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FERMANAGH and Omagh District councillors have voted to write to the British government to express serious concerns over plans to replace the UK Shared Prosperity Fund with a new Local Growth Fund, a move which will see funding for local community and voluntary organisations slashed from £25 million to £9.2 million.
The UK Shared Prosperity Fund (UKSPF) was introduced following Brexit to replace EU Structural Funds and formed a central part of the UK government’s ‘levelling up’ agenda aimed at reducing regional inequality.
From April 2026, it is due to be replaced by the Local Growth Fund as part of wider funding reforms.
Under the proposed changes, funding aimed at tackling economic inactivity in Northern Ireland is projected to fall by 64 per-cent.
Councillors warned the reduction could severely undermine efforts to support people back into employment and place hundreds of frontline jobs in the community and voluntary sector at risk.
The motion to write to the British government was proposed by Sinn Féin councillor Dermot Browne at the council’s monthly meeting on Tuesday night.
He said there was growing concern across the sector that a funding ‘cliff edge’ was approaching.
“After March 31, the Shared Prosperity Fund will end, putting hundreds of jobs at risk,” he said.
“This fund is the single most significant lever we have to tackle economic inactivity and provides thousands of people with the skills and support they need to re-engage with the workforce.
“These services are not just a lifeline for vulnerable people; they are also helping to make the North more productive. The proposed Local Growth Fund is totally inadequate, and recent details have confirmed there will be a 64 per-cent cut, which could result in hundreds of job losses.”
Cllr Browne said the cuts were a direct consequence of Brexit and decisions taken in London, adding that redundancy notices were already being issued in some organisations.
The proposal was seconded by Sinn Féin councillor Noleen Hayes, who described the impact of the cuts as devastating for the community and voluntary sector.
Alliance Party councillor Stephen Donnelly also supported the motion, highlighting the vital role played by community organisations and calling on the British government to continue providing adequate funding.
He said Brexit lay at the root of the funding reductions.
The SDLP backed the motion, with councillor Adam Gannon saying communities had ‘lost a great deal’ since Brexit and needed certainty over future funding. He also called on the Northern Ireland Executive to do more to restore financial support.
The UUP also supported the motion, though councillor John McClaughery said aspects of the wording made it difficult for unionists to fully endorse.
An amendment tabled by the DUP, which sought to reword the motion and remove a call for decision-making powers over structural funds to be returned to the Executive, was defeated.
The substantive motion was passed by 28 votes in favour, four against, with two abstentions.
