Pride in Place: Government’s £5bn regeneration scheme offers major opportunity for small businesses

The UK government has launched its long-awaited £5 billion “Pride in Place” programme, a decade-long initiative designed to revitalise 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 each receive £2 million per 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 neighbourhoods the means to breathe new life into their towns and stimulate local economies through community-led development.

For small businesses, the initiative presents significant opportunities to contribute to — and benefit from — a wave of regeneration projects across the country. Local cafés, retailers, tradespeople, professional services and leisure providers could all gain from increased investment, higher footfall and new contract opportunities as public spending flows into local infrastructure.

Joe Phelan, business loans expert at money.co.uk, said the programme could transform both communities and the small businesses that serve them. “The initiative gives neighbourhoods the tools to breathe new life into their towns,” he said. “It could also present opportunities for small businesses willing to step in.”

In towns such as Eston, Elgin, and Blyth, residents are already consulting business owners as part of the planning process, ensuring regeneration reflects local needs and expertise. In Newark-on-Trent, several vacant town centre units 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 draw tourists and create fresh opportunities for cafés, gift shops and other visitor-facing businesses.

Experts say early engagement will be key for local firms hoping to benefit from the Pride in Place funding. Business owners who attend planning meetings, consultations or local forums are more likely to identify potential opportunities ahead of time. Financial readiness 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 finance options such as business loans or credit lines could help small firms prepare for this new phase of community-led investment.

Beyond immediate contracts, analysts believe the Pride in Place initiative could help small businesses strengthen their resilience by anchoring growth in their local communities. As high streets, parks and community facilities are refurbished, surrounding businesses are expected to see higher visibility, greater footfall and a renewed sense of civic engagement. Local entrepreneurs could also benefit from partnerships and sponsorship opportunities linked to new community events and facilities.

In practical terms, regeneration funding may provide a more stable pipeline of work for small firms, helping them plan for the future with greater confidence. Businesses operating in areas benefiting from investment could see an uplift in trade and may be better positioned to expand, invest in new equipment or hire additional staff.

“The Pride in Place programme isn’t 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 towns while securing long-term growth.”

Full details of the scheme, including a complete list of participating areas and funding allocations, are available on gov.uk.

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Pride in Place: Government’s £5bn regeneration scheme offers major opportunity for small businesses