Plans for 20 regeneration projects scrapped

The Government has scrapped plans to implement 20 regeneration projects, the Yorkshire Post can reveal.

It would have seen 20 towns and cities, including Sheffield and Wolverhampton, transformed by creating new homes, jobs and communities as part of an attempt to “breathe fresh life into disadvantaged communities” modelled on the regeneration of King's Cross station in London.

It is understood that the policy announced by Michael Gove in January has been wrapped into the Government’s plans for low-tax investment zones announced by Kwasi Kwarteng.Sources told The Yorkshire Post that the pots of money for the project would still be available, as the Government is committed to not going backwards on progress it has already made.

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However, it is understood that the overall focus of the Department of Levelling Up has pivoted towards investment zones.

The plans were initially announced by Michael Gove in January before his sacking earlier this yearThe plans were initially announced by Michael Gove in January before his sacking earlier this year
The plans were initially announced by Michael Gove in January before his sacking earlier this year

These zones, intended to give tax-breaks for businesses to help drive growth, are one of the only surviving policies of Liz Truss and Kwasi Kwarteng’s mini-budget which sent the markets into meltdown last month.

However, the loss of another Michael Gove-speared project from the Government’s policy agenda has left groups concerned that investment will not be delivered for the North.

Last week Dehenna Davidson, a levelling up minister, told MPs that bids for money from the Levelling Up Fund could be adjusted to take into account the high rate of inflation, which could see less money for projects.

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Paul Swinney, the Director of Policy and Research at the Centre for Cities think tank, told The Yorkshire Post: “Whether it is done through King’s Cross-style regeneration schemes or investment zones, the Government now needs to take decisive action and set out how it plans to use public funding to fulfil its levelling up commitments and improve the performance of UK cities.

“Failing to do so risks widening the North-South divide and leaving struggling places even further behind.”

A DLUHC spokesperson said: “We remain committed to levelling up towns and cities across the UK.

“We’ve announced our support for Wolverhampton, Sheffield and Blackpool and are continuing to work closely with these places so they can deliver their regeneration ambitions and level up their communities.”