Why Leicestershire VCSEs are writing to Ministers about growth funding

Why Leicestershire VCSEs are writing to Ministers about growth funding

Explore the funding challenges facing Leicester and Leicestershire’s voluntary sector and why local organisations are calling for change.

Lauren Cropper

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Leicester Leadership Forum attended by 1284 Communications

Leicester Social Enterprise Network (LSEN) and partners recently wrote to Government to address the decision to exclude Leicester and Leicestershire from future Growth Funding. 

Their letter to Secretary of State for Housing, Communities and Local Government Steve Reed goes to the heart of how public funding supports people and places which are most exposed to economic and social change.

Over recent years, voluntary, community and social enterprise (VCSE) organisations in our region have delivered various EU Structural Fund, Community Renewal Fund and UK Shared Prosperity Fund (UKSPF) programmes.

These programmes have helped residents into work, strengthened local enterprise ecosystems, improved skills and confidence among economically inactive groups, and built community resilience. Many programmes exceeded their targets - demonstrating value for public investment.

Yet Leicester’s underlying economic position remains fragile. Centre for Cities’ May 2026 “Uneven Cities” report identifies Leicester as one of a small group of UK cities to have become more deprived and less affluent over the past 15 years. 

It shows that deprivation is concentrated in - but not limited to - urban areas, with hardship and limited opportunity embedded across substantial parts of the city.

The consortium makes the point that the withdrawal of Growth Funding, including the closure of all UKSPF-funded projects, is concerning. VCSE organisations working in some of the most deprived neighbourhoods (many in the bottom 10 percent on the Index of Multiple Deprivation) now face rising demand for services just as resources are squeezed. 

This combination risks declining health, impact on education, wellbeing and long‑term economic resilience.

In their letter, LSEN (and its counter-signatories) call for a review of the decision and for alternative routes to direct investment into Leicester and Leicestershire. 

Letter from Leicester Social Enterprise Network to Government about growth funding

1284’s experience as journalists covering the city and county means we know that strong partnerships and networks already exist in Leicester and Leicestershire. With fair, long‑term funding, a real difference could be made.

The letter comes as new devolution arrangements for our area take shape - with a project 1284 is supporting due to launch later this summer. Its aim is to accelerate the introduction of regional mayoral authority structures that devolution currently demands to embed funding and powers that match the scale of local need.

In a matter of days we will almost certainly have a new Prime Minister - himself an advocate of (and indeed a product of) devolution. 

It’s why - as stressed by East Midlands Chamber Chair Kevin Harris to an audience of business leaders at the recent Leicestershire Leadership Forum event at Leicester Tigers (pictured top).

As Kevin told the invitation-only crowd, without a devolution deal, Leicester and Leicestershire will be left behind financially and politically as other regions secure funding and influence.

"If you're not at the table, in simple terms, you ain't getting anything,” he said.

“So the gap widens and widens and widens and that is really, really distressing for this area because it's going to mean we will fall behind."

Our work with local government
Lauren Cropper

Author

Lauren Cropper
MPRCA

Account Executive

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