Regeneration schemes set to level up areas like King’s Cross in London, must be backed with significant public funding, a think tank has warned.

A report by Centre for Cities today called on the Government to commit to five pledges in its plans to redevelop 20 areas of the UK announced in its Levelling Up white paper under Michael Gove.

However there has been in recent weeks following admissions by ministers that Levelling Up will work differently under Liz Truss than it did under her predecessor, that funds may not be made available.

The Prime Minister, who has committed to making infrastructure projects easier to build, has also been clear that redistribution of public money is the “wrong” way to look at politics, and has instead championed low-tax investment zones as her vision of how to level up the UK.

BIRMINGHAM, ENGLAND - OCTOBER 03: Conservative MP Michael Gove walks between buildings on day two of the annual Conservative Party conference on October 03, 2022 in Birmingham, England. The Chancellor confirmed this morning the government would not be proceeding with the recently announced cut to the 45 pence tax rate for top earners. This year the Conservative Party Conference will be looking at "Getting Britain Moving" with more jobs and higher salaries. (Photo by Leon Neal/Getty Images)

However the report, published today, said that for every £1 of public money in these schemes could unlock five times as much in private investment in areas including Sheffield.

Its other three priorities for the policy included a focus on building successful city centres, many of which “underperform”, as well as accelerating planning reform.

The 20 schemes are based in part on the regeneration projects around King’s Cross and Stratford in London.

It comes amid continued tension between the Treasury and Downing Street over its investment zone policy.

Liz Truss has reportedly overruled her Chancellor by insisting that there will not be a limit on the number of areas that can apply, despite concerns within Whitehall that this could lead to billions of pounds in lost taxes.

A source told the Financial Times that the zones had created “a huge potential liability” if allowed to spring up all over the country.

Commenting on the report, Andrew Carter, Chief Executive of the Centre for Cities said: “These plans to regenerate sites across the UK should sit at the heart of the new Government’s plans to level up by attracting private sector investment to left-behind areas and boosting regional economies.

“For these schemes to be a success, though, they will need to be seen as suitable places to do business. Our proposals provide a clear plan of action for Whitehall to do this.”

Regeneration projects need 'significant' public money, warns think tank