The Government’s flawed approach to Levelling Up is exposed by MPs’ report

The report from the Public Accounts Committee (PAC) is damning on multiple fronts.

Local authorities have been able to spend only £1.24bn, just over 10 per cent of the promised £10.47bn from the government’s three Levelling Up funds, as of September 2023. That figure in itself tells a story as to the effectiveness of Levelling Up.

In fact, the whole approach to Levelling Up has proven to be flawed. The PAC also criticises the Department for Levelling Up, Housing and Communities (DLUHC) for a lack of transparency over the way funding is awarded.

Local authorities are left fighting with one hand tied behind their backs with rules for accessing funding changed while bids were still being assessed. This is frankly absurd with 55 local authorities bidding under changed rules with no chance of being successful in the second round, especially when an average bid for grants like Levelling Up cost around £30,000. Money that cash-strapped local authorities cannot afford to waste.

The Yorkshire Post has in the past warned against this kind of casino politics that pits local authorities against one another for this very reason.

A solution, similar to the Green Book formula, needs to be put in place where funding isn’t competitive but awarded to areas that need it the most.

The PAC report also found that more impactful bids to funding lost out due to optimism bias in favour of so-called ‘shovel-ready’ projects. This undermines the whole purpose of Levelling Up, which was to uplift left behind communities. It also shows that Levelling Up has been commandeered as an electioneering tool with the Government looking for quick wins rather than long-term meaningful gains.​​​​​​​