PARLIAMENTARY DEBATE
Levelling-up Projects - 3 March 2025 (Commons/Commons Chamber)

Despite the difficult fiscal context, at the autumn Budget we provided stability for legacy levelling-up projects—now called local growth funding—prioritising expenditure on the programmes that most directly support the five missions that this Government were elected on. The Government will set out our long-term vision for local growth at the upcoming spending review.

The provisional local government finance settlement for 2025-26 introduces changes to the previous methodology for the then levelling-up funding for categorising areas of priority need. The Rural Services Network has highlighted concerns and disparities that shift funding away from rural and coastal communities to urban areas. Can the Minister assure the House that any new funding formula will adequately address the unique challenges of rural and coastal communities? Will he commit to publishing the criteria by which future levelling-up funding decisions will be made?

We have been clear that for local growth funding we want to move away from the old model of competitive funding pots and beauty parades, which was short-term and based on central criteria. I can assure the hon. Lady that the model that people get from this Government will be longer term, will be allocative, will have more flexibility and will have more local leadership, and it will of course be targeted at those communities that need it the most.

I know that my right hon. Friend the Secretary of State enjoyed her visit. Our Ministry is clear that although we have a crucial role to play in devolution, it is a whole-Government venture. We are having frequent conversations with colleagues about how to crowd-in the important policy interventions they are making, to ensure that our communities across the country have the tools and resources they need to shape their place.