The Levelling Up Fund has fundamentally reshaped how the UK government approaches place-based investment. Unlike traditional grant programmes that focus on individual organizations, the Fund targets entire places—supporting integrated packages of investment that can transform local economies and communities.

With over 500 successful projects funded in Rounds 1 and 2, patterns of success have emerged. This guide reveals what assessors really look for, the common pitfalls that sink applications, and the strategic approaches that consistently win funding in this competitive landscape where only 30% of applications succeed.

Understanding the Levelling Up Fund

The Fund was established to deliver the government's commitment to "level up" opportunity across the UK by investing in infrastructure that improves everyday life for residents while supporting economic growth.

Fund Overview 2025

Total fund size: £4.8 billion over 4 years
Project size: £500k - £50 million per project
Funding rate: Up to 100% of project costs
Geographic scope: England, Scotland, Wales, Northern Ireland
Success rate: ~30% (varies by round and priority)

Key Changes for Round 3 (2025)

The government has refined the Fund based on lessons from earlier rounds:

Simplified categories: Streamlined from three to two investment themes
Enhanced local input: Stronger role for MPs and local leaders in prioritization
Faster assessment: Improved due diligence processes
Better value for money focus: Strengthened economic appraisal requirements
Climate considerations: Net zero alignment now mandatory

Investment Themes and Priorities

Round 3 focuses on two core investment themes, with specific priorities under each:

Theme 1: Transport Investment

Projects that improve connectivity and support economic growth:

Strategic Transport

• Road improvements and bypasses
• Rail connectivity enhancements
• Port and airport infrastructure
• Freight and logistics hubs

Local Transport

• Cycling and walking infrastructure
• Bus priority measures
• Local road safety improvements
• Digital transport solutions

Theme 2: Regeneration and Local Growth

Investments that revitalize places and create opportunity:

Economic Infrastructure

• Business parks and enterprise zones
• Innovation and research facilities
• Skills and training centres
• Digital infrastructure

Cultural & Community

• Museums, galleries, theatres
• Sports and leisure facilities
• Community centres and libraries
• Heritage and historic buildings

Eligibility and Geographic Priorities

The Fund uses a sophisticated prioritization system based on need indicators and local circumstances:

Priority Categories

Priority Level	Characteristics	Success Rate
Category 1	Highest need areas, significant deprivation	~50%
Category 2	Medium need, some deprivation indicators	~30%
Category 3	Lower need, generally prosperous areas	~15%

Your local authority's priority category can be found in the Fund guidance, but exceptional projects in lower priority areas can still succeed if they demonstrate significant wider benefits.

Who Can Apply?

Local authorities: County, district, unitary, and city councils
Mayoral Combined Authorities: Metro mayors and combined authorities
Transport authorities: Passenger transport executives
Other public bodies: With explicit government department sponsorship

Key Point: Unlike many grant programmes, private organizations and charities cannot apply directly. They must work in partnership with an eligible public body as the lead applicant.

Assessment Criteria

Applications are assessed against five weighted criteria. Understanding how these work together is crucial for success:

1. Strategic Fit (25%)

Projects must align with government priorities and local strategies:

Clear contribution to levelling up objectives
Alignment with local economic strategies
Support for net zero and environmental goals
Consistency with spatial planning policies

2. Economic Case (25%)

Robust economic justification with quantified benefits:

Benefit-cost ratio of at least 1:1 (preferably higher)
Job creation and GVA impacts
Productivity improvements
Additional economic benefits (agglomeration, regeneration)

Economic Tip: Use TAG (Transport Analysis Guidance) or Green Book methodology for economic appraisal. Professional economic consultancy support often proves worthwhile for complex projects.

3. Deliverability (20%)

Confidence that the project can be successfully delivered:

Realistic project timeline and milestones
Appropriate project management arrangements
Planning permission and legal consents
Risk management and mitigation strategies

4. Financial Case (15%)

Sound financial planning and value for money:

Accurate and justified cost estimates
Appropriate procurement strategies
Sustainable funding for operational costs
Value for money compared to alternatives

5. Management Case (15%)

Organizational capacity and governance arrangements:

Strong project leadership and governance
Stakeholder engagement and support
Monitoring and evaluation frameworks
Benefits realization planning

Building a Winning Application

Successful applications tell a compelling story about how investment will transform a place. Here's how to structure your narrative:

1. Define Your Place Story

Every successful application starts with a clear narrative about the place and its challenges:

Strong Place Narrative Example

"Blackpool's economy remains overly dependent on seasonal tourism, with 40% higher unemployment than the national average and productivity 25% below the North West average. The town centre has lost anchor retailers and footfall has declined 35% since 2010. However, our coastal location, transport connections, and existing visitor infrastructure create unique opportunities for diversification into the blue economy and year-round tourism."

2. Develop an Integrated Investment Package

The strongest applications combine multiple, complementary investments rather than standalone projects:

Transport improvements that unlock development sites
Cultural investments that complement economic infrastructure
Skills facilities that serve new employment opportunities
Digital infrastructure that supports business growth

3. Evidence Everything with Data

Successful applications are data-rich and evidence-based:

ONS data on employment, productivity, and deprivation
Local economic assessments and strategies
Transport modelling and demand analysis
Market research and feasibility studies
Consultation results and stakeholder support

Common Mistakes That Kill Applications

Analysis of unsuccessful applications reveals recurring problems that can be avoided with proper preparation:

1. Weak Economic Case

The most common failure point is insufficient economic justification:

Common Economic Case Errors

• Benefit-cost ratio below 1:1
• Unrealistic job creation estimates
• Failure to account for displacement effects
• Poor quality economic modelling
• Ignoring opportunity costs of investment

2. Unrealistic Delivery Assumptions

Many applications underestimate delivery complexity:

Optimistic planning consent timelines
Insufficient contingency in budgets and programmes
Lack of market testing for procurement assumptions
Inadequate risk assessment and mitigation

3. Poor Stakeholder Engagement

Applications that lack genuine local support often fail:

Limited consultation with affected communities
Absence of business or institutional support
Weak MP or political leader endorsement
Insufficient partnership working evidence

4. Generic Rather Than Place-Specific Solutions

Cookie-cutter approaches that could apply anywhere lack impact:

Solutions that don't address specific local challenges
Failure to leverage unique local assets
Generic cultural or leisure facilities without distinctive purpose
Transport improvements with limited local integration

Success Stories and Lessons

Learning from successful projects reveals patterns and approaches that consistently work:

Transforming Grimsby - £20M

Investment: Integrated package combining transport improvements, cultural facilities, and skills infrastructure

Key elements:

• Station quarter regeneration with new transport hub
• National Fishing Heritage Centre expansion
• Advanced manufacturing skills centre
• Public realm improvements linking projects

Why it succeeded:

• Built on existing maritime heritage and identity
• Addressed specific skills gaps in offshore wind sector
• Strong private sector engagement and co-investment
• Comprehensive economic modelling showing 3.2:1 BCR
• Integrated transport improvements unlocking wider regeneration

Carlisle Station Gateway - £10.5M

Investment: Major rail station improvements creating southern gateway to city centre

Key elements:

• New station building with enhanced facilities
• Multi-story car park and bus interchange
• Pedestrian and cycling links to city centre
• Commercial space for retail and business use

Why it succeeded:

• Clear transport connectivity case for cross-border region
• Strong partnership with Network Rail and train operating company
• Economic modelling showed significant agglomeration benefits
• Comprehensive stakeholder support including business community
• Aligned with wider Borderlands growth deal strategy

Working with Partners and Stakeholders

Successful Levelling Up Fund applications require extensive partnership working and stakeholder engagement:

Essential Partners

Local MPs: Their support can be influential in government decision-making
Business community: Evidence of private sector support strengthens economic arguments
Community organizations: Demonstrate local demand and social benefits
Delivery partners: Organizations that will help implement projects
Technical specialists: Economic consultants, transport planners, architects

Stakeholder Engagement Strategy

Effective Engagement Approaches

• Early and ongoing consultation throughout development
• Multiple channels: online, face-to-face, surveys, workshops
• Targeted engagement with affected communities and businesses
• Clear feedback on how input has influenced proposals
• Formal endorsements and letters of support from key stakeholders

Project Management and Implementation

If successful, managing a Levelling Up Fund project requires sophisticated project management given the scale, complexity, and government oversight involved:

Governance Requirements

Senior responsible officer (SRO) appointment
Project board with appropriate expertise
Risk and issue management processes
Regular reporting to government departments
Financial management and audit arrangements

Key Performance Indicators

All projects must monitor and report on:

Financial spend against profile
Delivery milestones and outputs
Economic outcomes (jobs, GVA, productivity)
Social and environmental benefits
User satisfaction and community impact

Timeline and Application Process

The application process is rigorous and time-consuming. Plan accordingly:

Application Development (6-9 months)

Months 1-2: Stakeholder engagement and option appraisal
Months 3-4: Economic modelling and business case development
Months 5-6: Technical design and cost estimation
Months 7-8: Application writing and partner coordination
Month 9: Final review and submission

Assessment Process (4-6 months)

Initial assessment: Completeness and eligibility check
Due diligence: Detailed technical and financial review
Ministerial consideration: Final decision-making process
Announcement: Successful projects announced publicly

Alternative Funding Options

If your project doesn't secure Levelling Up Fund support, consider these alternatives:

Government Alternatives

UK Shared Prosperity Fund: Local economic development
Community Renewal Fund: Pilot interventions in disadvantaged areas
Getting Building Fund: Shovel-ready infrastructure projects
Brownfield Land Release Fund: Site preparation and remediation

Other Sources

European Regional Development Fund (where still available)
Private sector investment and joint ventures
Community infrastructure levy and Section 106 contributions
Heritage Lottery Fund for heritage-led regeneration

Frequently Asked Questions

Can we submit multiple applications in the same round?

Each eligible authority can submit one application per round, but this can include multiple complementary projects as an integrated package.

What level of planning consent is required at application stage?

Full planning permission isn't required, but you need realistic timelines for obtaining consent and evidence that there are no insurmountable planning obstacles.

How important is private sector match funding?

While not mandatory, private sector co-investment strengthens applications by demonstrating market confidence and reducing public funding requirements.

Can projects cross local authority boundaries?

Yes, but one authority must be the lead applicant and you need formal agreements with all affected authorities plus evidence of genuine collaboration.

What happens if project costs increase after approval?

Cost increases require government approval and may need additional funding sources. The Fund won't automatically provide additional money for cost overruns.

Final Recommendations

Success with the Levelling Up Fund requires exceptional preparation, strong partnership working, and compelling evidence of transformational impact. The investment themes are broad, but competition is intense and standards are high.

Keys to Success

Start planning at least 12 months before application deadline
Invest in professional economic appraisal and technical design
Build genuine partnerships and community support
Focus on place-specific solutions rather than generic interventions
Ensure robust project management and delivery capability

Remember: the Levelling Up Fund is about transforming places, not just funding individual projects. Applications that demonstrate how investment will create lasting change for communities have the best chance of success.

This guide reflects the current Levelling Up Fund criteria and process as of January 2025. Government policies and funding programmes can change, so always check the latest guidance from HM Treasury and relevant government departments before applying.