‘Levelling-up’ funds won’t be delivered until 2048, says Labour

A flagship fund for “levelling up” left-behind regions will not be delivered until the mid-21st century on current trends, Labour has claimed.

Just 8 per cent of the Government’s “levelling-up fund” has been spent two years after it was announced.

Ministers launched the £4.8 billion fund in November 2020 as part of the Conservatives’ pledge to reduce regional inequalities.

However, a Freedom of Information request has revealed that as of Feb 22, just £392 million of the fund has been spent.

With this equating to an average of £14.5 million per month, Labour has calculated that at the current rate it would take until June 2048 for the fund to be delivered in full.

‘Even longer to see benefits’

The party said that it would take even longer for communities to see the benefits of the projects that have been promised funding.

The 8 per cent figure was revealed in the House of Commons last week by Lisa Nandy, shadow levelling up secretary.

Commenting on the delays to the roll-out of the fund, Ms Nandy linked the issue to the decision by the Government to abolish the pension lifetime allowance in the Budget – something that Labour says will only benefit the wealthiest 1 per cent.

She said: “It sums this Government up that in the recent Budget they spent three times more on a tax cut for the richest 1 per cent than they have spent in over two years on a levelling-up fund for our poorest communities.

“They can get their act together when it comes to the 1 per cent, but when it comes to investment in our town centres, local transport or decent housing, the rest of us just have to wait.”

‘Hunger Games-style bidding system’

Ms Nandy added: “This encapsulates the problem with the Conservatives’ Hunger Games-style bidding system, where communities have to go cap in hand to Whitehall.

“Labour will put an end to this broken system, putting communities in control of their own destiny through our take back control act, so local leaders are no longer reliant on a begging bowl in Westminster.”

The Department for Levelling Up, Housing and Communities (DLUHC) said the analysis did not take account of the fact that the prospectuses for the rounds of funding that have so far been allocated made clear the money will be spent over three years.

A DLUHC spokesman said: “These claims are completely misleading and wrong.

“The levelling-up fund will transform communities right across the country with £4.8 billion spent over four years, but we have always been clear that councils will receive funding over time and payments are made every six months.”