A 'lack of strategy' is greatest barrier to Government's levelling up agenda, report warns

Current agendas are still too Whitehall-centric, with under-pressure departments already lacking capacity to deliver new projects, the Centre for Cities warns in a new report with financial services firm Legal & General.

As Chancellor Rishi Sunak faces growing pressure to re-write spending rules known as the 'Green Book' to benefit places outside London and the South East, today's report warns a lack of direction is a greater threat to levelling up than official spending regulations.

Ahead of an expected Comprehensive Spending Review this Autumn, the report calls on ministers to set out a specific strategy on what they want to achieve, warning an extra £100bn will be needed over the next decade to achieve genuine change.

Local government must be given more power, the report concludes, calling on decision makers to press ahead with the abolition of "complicated" county and district councils and instead install directly-elected political leaders with the same powers as metro-mayors.

“While the overall principles enshrined in the Green Book are correct, our struggling cities and towns will not be levelled up by directives from Whitehall," said Andrew Carter, think tank chief executive.

"This can only be done by democratically accountable local politicians with the knowledge to select the right projects for their area – not by Treasury officials choosing between different parts of the country.

“The time has now come to confirm exactly what they want levelling up to achieve, and commit the money necessary to achieve it," he added. "There are deep economic divides between places in this country and it will take a very significant sum of money to close them.”

The report sets out calls for a clearer system to invest in levelling up, either through a new finance settlement or a local government funding formula such as the Barnett Formula which reflects devolved changes in spending levels.

Bill Hughes, head of Real Assets at LGIM Real Assets, said some already economically disadvantaged areas of the country may suffer greater under the economic and social impacts of the present pandemic without proper support.

“It is essential, therefore, that the Government seeks to revise its levelling-up agenda, and this report makes several excellent recommendations, including giving more local authorities greater autonomy to manage their own finances," he said.

A Government spokesperson said: “We have set out a clear commitment to level up all areas of the country by empowering our regions through devolving money, resources and control away from Westminster.

“We are considering a range of options and will set out our detailed plans in the White Paper that will be published this Autumn.”

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