I can only answer with respect to England as this is a devolved matter.
The red squirrel is a priority species under the UK Biodiversity Action Plan. The conservation aim for this species is to maintain self-sustaining populations of red squirrels, and wherever practicable, expand red squirrel populations where their sustainability is threatened. This action plan is being implemented through a broad partnership of government, statutory conservation agencies and the private and voluntary sectors.
In England, the approach to red squirrel conservation is to secure long-term habitat and conditions favouring the red squirrel in areas where grey squirrels have not yet reached in significant numbers and by limiting grey squirrel expansion into these areas.
The Red Alert North England partners have designated 16 reserves and associated buffer zones where long-term survival of the red squirrel is considered most likely. The partners’ Save our Squirrels project is delivering advice to landowners, co-ordinating squirrel control in the buffers, promoting Forestry Commission grants, raising public awareness and gaining further funding for squirrel conservation work.
The Red Squirrel Partnership led by Lord Redesdale was awarded a three-year £148,000 grant in June 2006 from rural enterprise scheme to support the control of grey squirrels in Northumberland to help protect the red squirrel reserves.