£5bn regeneration scheme opens doors for SMEs

The UK Government has launched the long-awaited £5bn Pride in Place programme, a ten-year initiative designed to revitalize towns and communities by putting local people in charge of how regeneration funding is spent.

The scheme, which was officially announced this week, will see 169 areas across the UK receive £2 million a year for ten years, while a further 95 areas will be given immediate funding to improve public spaces such as parks, high streets and community centres. The aim, according to ministers, is to give neighborhoods the means to breathe new life into their cities and stimulate local economies through community-led development.

For small businesses, the initiative offers great opportunities to contribute to and benefit from a wave of regeneration projects across the country. Local cafes, retailers, traders, professional services and leisure providers can benefit from increased investment, increased footfall and new contract opportunities as public spending flows into local infrastructure.

Joe Phelan, business loan expert at money.co.ukHe said the program could transform the communities and small businesses it serves. “The initiative gives neighborhoods the tools to breathe new life into their cities,” he said. “It can also provide opportunities for small businesses wanting to step in.”

In towns such as Eston, Elgin and Blyth, residents are already consulting with business owners as part of the planning process, ensuring regeneration reflects local needs and expertise. In Newark-on-Trent, many vacant units in the city center are being converted into housing, generating demand for construction, design and cleaning services. Meanwhile, in Torbay, a planned Agatha Christie Heritage Trail is expected to attract tourists and create new opportunities for cafes, gift shops and other visitor-facing businesses.

Experts say early engagement will be key for local businesses hoping to benefit from the crisis Pride is in the place of finance. Business owners who attend planning meetings, consultations or local forums are more likely to identify potential opportunities early. Financial preparedness will also play a role, as some projects may require upfront investment to deliver goods or services before contracts are paid. Phelan suggested that flexible financing options such as business loans or lines of credit could help small businesses prepare for this new phase of community-led investment.

Beyond spot contracts, analysts believe the Pride in Place initiative could help small businesses boost their resilience by embedding growth in their local communities. As main streets, parks and community facilities are renovated, surrounding businesses are expected to see better visibility, greater footfall and a renewed sense of civic engagement. Local entrepreneurs can also benefit from partnerships and sponsorship opportunities associated with new community events and facilities.

In practical terms, renovation financing may provide a more stable course of action for small businesses, helping them to plan for the future with more confidence. Businesses operating in areas benefiting from the investment could see a rise in trade and may be in a better position to expand, invest in new equipment or hire additional staff.

“Pride in Place is not just a government initiative,” Phelan said. “It’s a call to action for local communities and entrepreneurs alike. Small businesses that get involved early can help shape the future of their cities while securing long-term growth.”

Full details of the scheme, including the full list of participating areas and funding allocations, are available at the following link: gov.uk.