Does the Government's Levelling Up fund need to change?

Only around 15 per cent of the money awarded through the Government’s Levelling Up fund in October 2021 has been spent in the two years since.

The data - obtained through a series of Freedom of Information requests by the PA news agency - showed £1.4 billion is yet to be spent across the North.

Many projects are still in the design phase and are yet to submit planning applications, despite the fund being intended for shovel-ready projects.

Bradford Council is among several authorities forced to scale back their Levelling Up fund projects.

The Council was awarded £20 million towards plans to build the new Squire Lane leisure, community and enterprise centre, near Bradford Royal Infirmary.

Two years later, the Council has not submitted final plans for the project.

Questions have now been raised about whether the funding process could be levelled up itself.

Councillor Kamran Hussain, Councillor Arshad Hussain and Councillor Fozia Shaheen at the Squire Lane site

Rebecca McKee, a senior researcher focusing on levelling up at the Institute for Government, said the figures showed “a key problem with the way that the Levelling Up Fund has been administered”.

West Yorkshire Combined Authority expressed the need for “long-term, flexible funding settlements”, instead of competitive applications that “pit areas against one another”.

It is a view shared by Councillor Alex Ross-Shaw, Bradford Council’s executive member for regeneration, planning and transport. 

Councillor Alex Ross-Shaw, Bradford Council’s Executive Member for Regeneration, Planning and Transport (Image: Newsquest)

Cllr Ross-Shaw said: “We always welcome investment.  But too often these are one-off pots of £20m capital funding, won in Government competitions, and are dwarfed by the scale of the £350m revenue funding Government cuts to council annual budgets.

"Government can give us money for a building and we’re grateful for it but if we’ve no money to pay for the workers who help build it then inevitably it will be slower to happen.

“Constant bidding processes for time-limited and restrictive pots of money is no way to establish long-term planning for local or national government. Inflation has been so high that by the time funding is released schemes often have to be re-scoped because the envelope is set too tightly.

"Properly devolving this funding to local government would allow us to plan for the longer term and invest more sustainably in our communities, as well as saving money otherwise spent preparing bids for these competitions.  It would also free up vital officer time locally and nationally.”

'Councils over-egged their pudding'

Shipley MP Philip Davies said he has shared his own concerns personally with Secretary of State Michael Gove and the Levelling Up Minister Jacob Young.

But he claimed some councils “over-egged their pudding” during the bidding process and have since struggled to deliver.

“I share the concern about this,” the Conservative politician said.

“The problem - as far as I can see - is that councils over-egged their pudding in the bidding process claiming they could deliver more than they could and faster than they could, as they knew that was the best way to secure the funding.

“I have therefore asked the ministers to withdraw funding from the schemes that are not as claimed at the time, to ensure there is money available for schemes like a new swimming pool in Bingley which can be delivered quickly and without complication.”

In July 2023, the Department for Levelling Up, Housing and Communities (DLUHC) changed the rules governing the Levelling Up Fund, allowing councils to change expected outputs by 30 per cent without having to ask for Whitehall’s permission.

The Squire Lane project has suffered a significant setback after funding issues forced Bradford District Care Trust - a key partner - to withdraw.

The Trust had originally intended to financially contribute to the multi-million-pound site, but recently pulled out due to "demands on capital funding across the NHS".

A report referenced a "revenue gap" of £750,000 and said the authority was "committed to attempting to mitigate" that.

A spokesperson for West Yorkshire Combined Authority said: “The communities of West Yorkshire and the North of England cannot be levelled up from behind a desk in Whitehall.

“What we need are long-term, flexible funding settlements to spend on local priorities – not more funding competitions that waste local resources and pit areas against one another."

A spokesperson for the DLUHC said its £4.8 billion Levelling Up Fund is supporting projects across the UK. 

The spokesperson said: “We continue to work closely with local authorities to support their delivery of these vital projects, while also maintaining value for money for taxpayers.

“A £65 million support package is available to local authorities to ensure they have the necessary capacity and capability to deliver their projects.”

The Government plans to launch a third round of Levelling Up funding in November.