£37.8m UK Government Local Growth Fund provides Green Light for Major New Housing and Green Skills Hubs
Five new skills training centres across south east Scotland are to be created with £25m of UK Government funding, it was announced today (3 September 2026).
The investment is part of an overall award of £37.8m for Edinburgh and South East Scotland City Region from the UK Government's Local Growth Fund and will support future housing delivery, retrofit and green economy jobs in the region. Additionally, the funds will drive regional employability and business growth initiatives, while financing transport planning and research into the impact of AI.
The UK Government has now released £14.09m to Edinburgh and South East Scotland Regional Partnership after signing off on its locally designed three-year Local Growth Fund investment plan, which targets areas with the lowest household incomes to create jobs and boost living standards. Funding for Years 2 and 3 will be rolled out as the region progresses through its plans.
A partnership between the four regional colleges of Borders, Edinburgh, Fife, and West Lothian plans to train over 20,000 new entrants across the region over the coming decade as well as upskill existing workers.
South East Scotland is the fastest growing region in Scotland, with some of the highest housing demand for now and into the future. The new training hubs will be strategically important in the delivery of 40,000 new homes across the region’s seven strategic housing sites.
The training centre in the south of Scotland will also benefit from Scottish Government funding through the Borderlands Inclusive Growth Deal.
Audrey Cumberford, Principal of Edinburgh College, said:
“This is a great example of colleges coming together and taking a proactive approach to meet the skills needs of the region that we serve.
“The construction sector is going to be hugely significant to Edinburgh and the Lothians over the coming years, and these training hubs will ensure it has the workforce it needs to flourish.
“Projects like this emphasise the potential that colleges have to work hand in hand with key employers to provide a pipeline of skilled labour for future employment opportunities.”
Scottish Secretary Douglas Alexander said:
"Today the UK Government is releasing more than £14 million to Edinburgh and South East Scotland partners who know their communities best.
“These funds will be crucial for addressing skills shortages, driving green innovation and removing barriers to local employment and infrastructure development.
“The UK Government is committed to empowering local communities by spreading power throughout the country. These funds will support local leaders throughout Scotland to create skilled jobs, help start up businesses and revive our local high streets."
City of Edinburgh Council Leader Cllr Jane Meagher, said:
“This investment in new training hubs will give thousands of local people the chance to gain new skills and build rewarding careers in construction and green technology. With strong demand for new homes together with our work to reach net zero, having a skilled local workforce will be essential.”
According to a report undertaken by the University of Edinburgh and West Lothian College, the region has a construction workforce of 57,000, of which 21,000 (34%) commute for work into the region from other parts of Scotland daily. The study identified that the region requires an additional 20,000 new entrants, upskilling roles and replacement construction workforce over the next 10 years.