20 January 2023 , 12:54
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The fallout from the government's levelling-up mess is piling further pressure on Rishi Sunak, who has come under fire from all sides.
A massive £2.1 billion was distributed between 111 places whose bids for cash were accepted, but many of the decisions have been met by a massive outcry.
Tories are accused of overlooking bids from deprived areas in favour of wealthier places, and Mr Sunak has had to defend allegations that Conservative-voting parts of the UK benefitted most.
Damning evidence by research group the Centre for Inequality and Levelling Up found that in the two funding rounds so far, a quarter of England's 100 most deprived areas have received no cash at all.
There was fury in Rochdale, the 17th most deprived area in the country, after a £40 million funding bid was scrapped - sparking allegations that Tory areas were prioritised.
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To pile further pressure on the PM, a bid in his own Richmond constituency in North Yorkshire - which is in the 251st most deprived area out of 317 in the country - was awarded £19 million.
Other affluent areas also awarded cash included Rutland, the 15th least deprived, which was given nearly £22 million.
Even Mr Sunak's own party are far from happy, with insiders branding it a "f**k up of epic proportions".
In "forgotten" areas like South Shields, in South Tyneside, the anger is there for all to see.
According to the government's own deprivation index, South Tyneside is the 26th most deprived area in England. It ranks 13th lowest for average income and third worst for employment.
MP Emma Lewell-Buck was naturally incensed, telling voters: “Freeports bid – rejected; towns fund bid – rejected; two levelling up bids – rejected. Levelling up is just an empty slogan.”
And locals told The Mirror of their fury. Fruiterer Rachel Smith, 42, said that the town is on its knees. “There are no jobs, no opportunities. I have four brothers, every one of them has had to leave to find work. The town centre is dead. If anywhere needed help, it’s this place.”
It's no surprise that MPs, local authority figures and members of the public have erupted in anger - with the system branded not fit for purpose.
It was a similar story in Plymouth, when a £20 million bid for three projects was requested, with Plymouth Sutton and Devonport MP Luke Pollard fuming: "When 99.8% of communities are richer It’s hard to believe we have been passed over to be levelled up.
"The PM’s own wealthy constituency got £19m, but Plymouth’s bid was rejected."
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Analysis in The Times indicated 52 Tory constituencies in England benefit - more than twice as many as those represented by Labour MPs.
Rachel Smith said South Shields is on its knees (North News & Pictures northnews.co.uk)
Luke Pollard, MP for Plymouth, was furious at this week's announcementDeprived areas that haven't been awarded anything
Analysis published by the Centre for Inequality and Levelling Up found these are the places in the 100 most deprived places in England to have received no funding.
However receiving funding is dependent on putting in a bid, and it's not yet clear how many did. Hastings Borough Council, for example, said it would not be putting a bid together until round three - assuming there is one.
Rochdale, however, certainly did, and there is massive anger that a £40 million bid was rejected.
Council economy chief John Blundell told the Manchester Evening News: “The fact that two-thirds of constituencies across the country were Conservative goes to demonstrate how much of a stitch up this really is.
"The government has utterly butchered local government budgets year on year and created this culture of The Hunger Games where people have to bid for miniscule amounts of cash and to hand out what little cash there is to Tory areas is utterly appalling."
The places are:
- Hastings, South East - 13th most deprived
- Middlesbrough, North East - 16th most deprived
- Rochdale, North West - 17th most deprived
- South Tyneside, North East -26th most deprived
- Islington, London - 28th most deprived
- Halton, North West - 39th most deprived
- Lambeth, London - 42nd most deprived
- Southwark, London - 43rd most deprived
- Torbay, South West - 48th most deprived
- Fenland, East - 51st most deprived
- Bolsover, East Midlands - 58th most deprived
- Enfield, London - 59th most deprived
- Greenwich, London - 60th most deprived
- Norwich, East - 61st most deprived
- Ipswich - East, 71st most deprived
- Scarborough, Yorkshire and The Humber - 75th most deprived
- King’s Lynn and West Norfolk, East - 79th most deprived
- Coventry, West Midlands - 81st most deprived
- Sefton, North West - 89st most deprived
- Rossendale, Yorkshire and The Humber - 91st most deprived
- North Norfolk, East - 94th most deprived
- Hounslow, London - 95th most deprived
- Hammersmith and Fulham, London - 96th most deprived
Five wealthiest places that did get funding
There were some eyebrows raised with some of the decisions, as some of the country's wealthier areas were awarded funding in the latest round.
Controversially this included Richmondshire in North Yorkshire - which happens to include the PM's constituency.
Here are the five least deprived areas that were awarded cash this week:
- Rutland, in the East Midlands, is ranked 303rd on the government's deprivation index, but was awarded nearly £22 million.
- Derbyshire Dales , ranked 256th, received £13.3 million for the Ashbourne Reborn project to transform the town centre
- Richmondshire, in Rishi Sunak's constituency, was awarded £19 million to transform Catterick Garrison town centre
- Sutton, ranked 227th, was awarded £14.1 million to improve train services to Belmont
- Broxtowe, ranked 223rd, was awarded £16.5 million for town centre improvements in Kimberley
Asked whether the PM was embarrassed that his constituency picked up cash while less well-off areas missed out, Mr Sunak's official spokesman said: “No, absolutely not. I don’t think anyone would be embarrassed by our armed service personnel having money invested into areas where they live ... that would be ludicrous.”
Rishi Sunak on a visit to Rutland yesterday to discuss levelling up (Simon Dawson / No10 Downing Street)Did ministers play a role?
Downing Street has insisted that the PM and cabinet members did not make final decisions on which bids were accepted.
But they were certainly involved in discussions.
An explanatory note from the Department of Levelling Up, Housing and Communities said: "The Chancellor of the Exchequer, the Secretary of State for Levelling Up, Housing and Communities and the Secretary of State for Transport met with officials from their departments to discuss the Great Britain and Northern Ireland shortlists. Officials from the DCMS together with representatives from No. 10 also attended the meeting in an advisory capacity."
What has Labour said?
Lisa Nandy MP, Shadow Levelling Up Secretary, accused the government of "extraordinary arrogance" and said it's time to end the "Hunger Games" contest for cash.
She said: “The Levelling Up Fund is in chaos, beset by delays and allegations of favouritism. 15 months after the first round of allocations, just 5% of the money has made it to the communities who were promised it. And despite today’s announcement, communities across the country are still paying a Tory premium for the last 13 years.
“It takes an extraordinary arrogance to expect us to be grateful for a partial refund on the money they have stripped out of our communities, which has decimated vital local services like childcare, buses and social care.
“It is time to end this Hunger Games-style contest where communities are pitted against one another and Whitehall ministers pick winners and losers."
Labour's Lisa Nandy has lashed out at the chaos (Getty Images)Which regions got the most cash?
A regional breakdown of the funding shows:
- Yorkshire and the Humber: £120,619,162
- West Midlands: £155,579,834
- Wales: £208,175,566
- South West: £186,663,673
- South East: £210,467,526
- Scotland: £177,206,114
- Northern Ireland: £71,072,373
- North West: £354,027,146
- North East: £108,548,482
- London: £151,266,674
- East Midlands: £176,870,348
- East: £165,903,400
How has Mr Sunak responded to criticism?
Mr Sunak has denied that Tory areas were favoured, saying northern England was "disproportionately" benefiting from "levelling up" funding.
As part of the latest £2.1 billion of support for projects, almost £362 million will be spent in London and the South East, while £354 million will go to the North West.
But on a visit to Lancashire to promote the funding announcements, Mr Sunak said there was a "huge" difference in funding on a per capita basis, with the North West coming out on top.
"We are completely committed to levelling up across the United Kingdom," he said.
"If you look at how we are spending this money, it is disproportionately benefiting people in the North East, the North West, and that's great."
He denied the funding allocations were motivated by an attempt to shore up support in southern Tory seats.
"I think around half the funding we have announced over the course of today, or both funds, has actually gone to places that are not controlled by Conservative MPs or councils," he said.
"I don't think anyone can say it's being done on that basis, there's a completely objective, transparent criteria."