The deputy leader of Warwickshire County Council has accused the government of "rewarding failure" after new rules saw one grant cut by more than half. 

Priority areas for the UK Shared Prosperity Fund (UKSPF) were discussed by the county's cabinet – the panel of Conservative councillors in charge of major service areas – last week. 

The fund, created in the wake of the end of EU subsidies, has been distributed via district and borough councils in recent years but Warwickshire County Council has now taken charge as part of the devolution deal it was awarded last year. 

The national budget for UKSPF has been cut by 40 per cent – £900 million, down from £1.5 billion – but a county council report revealed how Warwickshire has received even less than expected for the forthcoming financial year. 

The county's six councils combined are expected to receive £10.2 million between them across 2024-25 with an additional £880,000 to fund the Multiply programme, which provided targeted support with adult numeracy. 

The report reads: "An allocation of £7 million was expected based on the previous methodology for allocating the funding and following confirmation in the new government's budget that Multiply would close.

"However, there is a higher proportion of capital funding compared to previous years. MHCLG (Ministry for housing, communities and local government) has also used a new methodology for 2025-26 which shifts the available capital funding towards mayoral combined authorities and protects the revenue allocations to more deprived local authority areas."

The county says its allocation of £5.27 million in total – £4.3 million for revenue, which is spent on services, and £970,000 for capital projects, which pays for physical items or infrastricture – represents a 53 per cent reduction.

Cllr Martin Watson, the county's political lead on economy, was questioned on why. 

"Unfortunately, it is one of those where being very successful at these programmes, we seem to have got less money," he replied.

Deputy leader and portfolio holder for finance and property Cllr Peter Butlin then jumped in.

"They're rewarding failure," he insisted. 

Cllr Watson said the county was "hoping for further year settlements once things calm down" rather than the one-year grant given this time.

On the spending plans, he said the council had sought a "balanced approach" with a reduced amount – 24 per cent of the overall pot – made available for people and skills "in order to maximise investment in the other two areas".

Communities and place and business support will receive 36 per cent each. The remaining four per cent – £211,000 – will be retained by the county for administration, the maximum proportion allowed.