Pride in Place: what you need to know

Overview                                                                                         

The government has announced its flagship strategy for community-driven local regeneration: Pride in Place. Local communities will be given the power to allocate funding to projects within their area that will improve outcomes. This strategy has three stated objectives:

1. To build stronger communities.
2. To create thriving places.
3. To empower people to take back control.

Each selected area will receive £20 million over the next decade (£14.9 million in the form of capital funding grants), to be spent on a range of initiatives that respond to local need. To help local areas plan, the Ministry of Housing, Communities, and Local Government (MHCLG) has published a list of suggested interventions that set out how places can make best use of this funding, though they can seek approval for other interventions. Many of these initiatives are directly related to neighbourhood health, for example, through Health on the High Street.

New ‘neighbourhood boards’ will select, allocate funds and oversee initiatives. These boards will be led by an independent chair, appointed by the local authority following consultation with the local MP. Local NHS leaders are mentioned as potential chairs and members of these boards. 

The Pride in Place Strategy is divided into Phase 1, Phase 2, and an additional Impact Fund. In total, 268 areas across England, with varying geographic footprints, have been selected to receive funding from either Phase 1, Phase 2 or the Impact Fund.

Phase 1 of the Pride in Place Strategy was previously announced in March 2025 as Plan for Neighbourhoods. The 58 areas in England selected vary significantly in population size as their geographic footprints are based upon ‘built-up areas’. The delivery phase for this group of areas will start in spring 2026, with each board having produced a detailed four-year investment plan and a ten-year vision. 

Phase 2 was announced in September 2026 targeting 146 ‘doubly disadvantaged’ areas in England. These areas were selected based upon deprivation (Index of Multiple Deprivation) and community need (Community Needs Index). The geographic and population footprints of Phase 2 are both smaller and more consistent than Phase 1, being ‘middle layer super output areas’ with around 10,000 people. The delivery phase for this group of areas will start in spring 2027. 

Sixty-four local authorities in England will receive an additional £1.5 million over the next two years from the Pride in Place Impact Fund. Many of these authorities, or areas within them, are already listed in either Phase 1 or Phase 2 of the Pride in Place Strategy. The additional aim of this separate funding pot is to ‘stimulate local economic activity through visible, short-term, community-led improvements.’

Other aspects of the Pride in Place Strategy, with details still to be announced, include:

• a Community Wealth Fund, providing between £1-2.5 million over ten years to communities
• ensuring community groups have a right of first refusal on purchasing registered local assets
• giving local authorities the power to block the development of unwanted shops and speed up the process of compulsory purchasing.

This local regeneration strategy sits within the wider context of devolution and local government reorganisation: changes that will impact many of the areas within the Pride in Place Strategy. The £5 billion committed emphasises the political importances of this strategy to the government. The hope is that this funding will help crowd in additional funding from philanthropists, social investors and socially minded businesses. Many town centres have already seen the development of Business Improvement Districts (BIDs) to support local regeneration. 

Key implications and opportunities 

The new Pride in Place Strategy offers an opportunity to support interventions that will reduce demand on NHS services. The metrics used to select areas for this funding are also associated with higher levels of demand for healthcare services. It will be important for local NHS leaders engage and participate in neighbourhood boards to ensure that improving the health of these populations is at the forefront of considerations.

To maximise efficiency and effectiveness, it is important that initiatives pursued by the boards are complementary to other neighbourhood health initiatives, such as the National Neighbourhood Health Implementation Programme. Many of the areas that are receiving Pride in Place funding are also part of the NNHIP. Neighbourhood boards provide the space to align and expand these actions. By actively engaging and participating in neighbourhood boards, local NHS leaders will strengthen links with other local partners, ensuring joined-up approaches, and deliver for communities with the highest health demands.

Interventions supportive of the left shift are on the pre-approved list of actions for neighbourhood boards. This is important as it means committing funds to local pilot programmes, mental health hubs, supporting co-location of services, converting viable buildings on high streets into healthcare facilities, do not require external approval. The decade-long provision of funds provides the necessary stability to pursue these initiatives. It is important that these health initiatives remain on the pre-approved list for Phase 2 areas and NHS leaders engage with boards to support their left shift. 

These local regeneration programmes sit in the wider context of devolution and local government reform. Many of the areas that will receive Pride in Place funding will also see the restructuring of their local councils in the coming years. It is therefore even more important that local NHS leaders take an active role in these initiatives, not only as major contributors to local communities, but as key points of stability and experience.

There remains a lack of a consistent or common definition of ‘neighbourhood’. Geographic footprints within the Pride of Place Strategy and across public services vary significantly. Similarly, what people think of as their neighbourhood varies depends on density, connectivity and community. Therefore, it is important to adopt ‘neighbourhood’ as a descriptive rather than proscriptive term. 

Analysis  

Upon election in July 2024, the Prime Minister, Sir Keir Starmer, pledged to lead a ‘mission-driven government’ and put an end to ‘sticking plaster politics’. The government has so far struggled to drive forward this ‘new way of doing government’. There is an acknowledgement that while overarching challenges have hindered progress, the government should look towards neighbourhood working and the broader neighbourhood health service as an opportunity to demonstrate what a mission-led government could look like. 

Moving to a neighbourhood model of care must mean resetting the relationship between the NHS, the wider public sector and communities. The Pride in Place Strategy represents the start of a shift in how power and resources are distributed. It also speaks to the wider challenge of improving public services and the inherent tension between centralisation and devolution. A preventative model of care requires moving from a top-down public management approach to one based on trust, delegated responsibility and consistent funding and support. The Pride in Place Strategy offers tracks along which to drive these agendas forward. 

The Pride in Place Strategy, along with other programmes launched to encourage a focus on-local collaboration and need such as the National Neighbourhood Health Implementation Programme (NNHIP), Test Learn and Grow (TlG) and Community Help Partnerships (CHP), points to a growing recognition of the need for tailored approaches and to involve communities in decision-making. The push for neighbourhood health is part of this wider effort to integrate public services around our shared communities. Place-based collective action is not only important for improving peoples’ outcomes but also for delivering the 10 Year Health Plan. 

How we are supporting members

Over the past 18 months, we have played a leading role in shaping and developing the neighbourhood health policy landscape. We will continue to ensure that our members’ voices continue to shape national policy. As well as supporting the delivery of the National Neighbourhood Health Implementation Programme (NNHIP) and wider 10 Year Health Plan delivery groups, we will be supporting implementation across all of our member networks.

Further information on our work on neighbourhood working and access to a range of resources can be found at our neighbourhood working hub. 

Also, we have been working with mayors and the Ministry of Housing, Communities and Local Government, as well as engaging in wider discussions around the devolution of powers across England. This includes working in partnership with local systems, the Department of Work and Pensions, the Department of Health and Social Care and NHS England to co-design the role of the NHS in reducing economic inactivity. Our existing Health on the High Street work also takes on renewed importance in light of the Pride in Place Strategy.

We will continue to support members to understand the implications of devolution, local government reorganisation, and local regeneration initiatives for their areas.