PARLIAMENTARY DEBATE
Levelling-up Fund Round 2 - 19 January 2023 (Commons/Commons Chamber)
Debate Detail
Levelling up is one of the driving missions of this Government as we look to build a stronger, fairer economy. As the Prime Minister set out a fortnight ago in his five people’s priorities, levelling up is how we will grow our economy, spread opportunity across the country and build stronger communities with safer streets for people to live on.
The levelling-up fund is essential to how we will develop that opportunity, which is why we have today set our next wave of investment for projects up and down the UK. The second wave will see up to £2.1 billion-worth of funding, awarded to 111 bids that we know will stimulate growth and benefit communities.
The levelling-up fund is about directing funding where it is needed most. Local leaders and Members across this House have seen the impact of the first round of funding, with 105 bids receiving £1.7 billion to drive regeneration and growth in areas that have been overlooked and underappreciated for far too long. That is why we received a tremendous response to the second round, with more than 500 bids received totalling £8 billion, which is a significant increase on the 300-odd bids received last year.
Across the two rounds of the fund, we have allocated nearly £4 billion to more than 200 bids from communities across the UK. I am pleased that we have been able to work closely with parliamentarians, local authorities and the devolved Administrations in all parts of the United Kingdom.
The levelling-up fund has a clear and transparent process for determining how bids are selected. Each bid is assessed by officials against the published assessment criteria, with the highest scoring bids shortlisted. To ensure that there is a fair spread of bids across the UK, funding decisions are then based on the assessment score and by applying wider considerations such as geographic spread and past investments. A place’s relative need is also baked into the process. In this round, 66% of investment went to category 1 places. As we did for round 1 of the fund, an explanatory note setting out the details of our assessment and our decision-making process will be published on gov.uk. Ministers did not add or remove bids from the funded list, as set out in the note.
There will be a further round of the levelling-up fund, along with other investments. I look forward to working with hon. Members across the House as we protect community assets, grow our local economies and restore pride of place where people live and work.
The Government are running scared of Parliament and their own Back Benchers—judging by the faces behind the Minister, I can understand why. However, there are serious questions to be answered. Levelling-up is a failure: the Government are going backwards on their flagship missions—they cannot even appoint levelling up directors—and today we see that reach its maximum. There is a rock-bottom allocation for Yorkshire and the Humber, nothing for the cities of Birmingham, Nottingham and Stoke, and nothing for Stonehouse in Plymouth, which is a community in the bottom 0.2% for economic activity, but there is money for the Prime Minister’s constituency and money for areas in the top quartile economically. What on earth were the objective criteria used to make those decisions? How on earth are only half the successful bidders from the poorest 100 communities?
Over the last decade or so, the cut to local government —in cash terms rather than real terms—is £15 billion. Today’s announcement gives back £2.1 billion. The Government have nicked a tenner from our wallets and expect us to be grateful for getting less than two quid back. We are pleased for the communities that have been successful because they have been starved of cash for years, but in reality even those communities will still get back less than the Government have taken from their budgets. The Minister must be honest that, in levelling up, even the winners are losers.
Is not the reality that this “Hunger Games” approach to regional growth creates a huge amount of waste in time and energy? Why will the Government not instead adopt our commitment to end these beauty parades in favour of proper, sustained investment that is targeted at need?
We are to believe that levelling up is to be rebranded as stepping up or gauging up. Let me save the Minister the trouble. It is not levelling up, it is not stepping up and it is not gauging up. It is time’s up.
The hon. Gentleman mentioned the Prime Minister’s constituency. I am proud that we are regenerating a town where there is an infantry base. I am comfortable that we are supporting our country and the people who serve in it. He forgot to mention that the Leader of the Opposition had a successful bid in his constituency and that the shadow Secretary of State, the hon. Member for Wigan (Lisa Nandy), got £20 million. He also forgot to mention that Nottingham North got £18 million in round 1 and therefore is benefiting from the Government’s levelling-up programme.
Will the Minister arrange for departmental officials to talk with those who put in the bids about how some of these important projects could be funded in other ways, rather than waiting for the third round?
On my hon. Friend’s second point, we will be providing feedback because there will be a third round and we want people to understand why they were not successful in this one.
Let us not forget that the last successful bids, which took place last October, were based on costings at that time. However, labour and material costs have soared. Unless the funds are renewed, the bids cannot be delivered as envisaged and therefore they cannot level up as anticipated at the time. Is it not the case that the whole so-called levelling-up pantomime is more about Tory PR, spin and pork barrel politics than any attempt to reduce inequality?
Some of the most deprived areas of the country are in my constituency, which also missed out on its green freeport bid, which went to the much wealthier east. The fraudulently titled levelling-up fund is meant to replace EU funding previously allocated to deprived areas. How is it possible that areas of multiple deprivation missed out while the Prime Minister’s constituency, one of the wealthiest in the UK, nabbed £19 million, and while £45 million went to help fix the mess of the roads in Dover caused by the Government’s kamikaze Brexit? Is the Minister not utterly ashamed at some of these announcements? If not, why not?
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