London Daily

Focus on the big picture.
Friday, May 30, 2025

Labour calls for investigation into allocation of funds for deprived regions

Labour calls for investigation into allocation of funds for deprived regions

Examination of community renewal fund follows similar concerns about so-called ‘levelling-up’ fund
Labour has called for an independent investigation into the allocation of funds intended to assist the most deprived regions unless ministers can explain why a significant chunk of the money will go to better-off areas.

It comes as a Guardian analysis of one of the three funds detailed in Wednesday’s budget showed that almost a third of the areas in England selected to receive money are not notably deprived, and that of these, almost 90% are entirely represented by Conservative MPs.

The examination of the community renewal fund (CRF) follows similar concerns about the other two funds that were detailed where details were announced at the budget.

For the so-called “levelling-up” fund, again about a third of English areas picked to receive money are not in the top third of the most deprived regions, the vast majority being Tory areas. With the towns fund, 39 out of 45 places chosen have Tory MPs.

The shadow communities secretary, Steve Reed, said the choice of recipients “must be done transparently, fairly and with a say for local communities … “Ministers’ murky decisions to prioritise wealthier areas are anything but fair or transparent.”

He said ministers must explain why some better-off areas had been prioritised for funding over others that were significantly more disadvantaged.

“If they refuse there must be an independent investigation that looks at the relationship between these three funds and how ministers decided who got funding and who didn’t,” he said.

Reed has submitted parliamentary questions to Rishi Sunak, asking the chancellor to outline the funding formula for the CRF, and to ask whether he saw lists of priority funding for the CRF and the levelling-up fund before they were published.

Richmondshire in North Yorkshire, which is part of Sunak’s constituency, received money from both funds, despite being in the bottom third of most deprived places in England by average deprivation score.

Both the CRF and levelling-up fund also cover Scotland and Wales, but deprivation levels are calculated differently between the nations, so the Guardian analysis of the CRF used only the 73 English regions among the 100 listed as first to get money.

Of these, three were in the least deprived third by average deprivation score – Richmondshire, East Northamptonshire and Derbyshire Dales. All are entirely represented by Conservative MPs.

Another 19 were in the first group to receive funding from the CRF despite being in the middle third for deprivation. Sixteen have only Tory MPs, and three have a mixture of Tory and Labour representatives.

Parliament’s spending watchdog raised serious concerns in November that funding decisions about the £3.6bn towns fund were politically biased.

The cross-party public accounts committee said it was “not convinced by the rationales for selecting some towns and not others” when the first money from the fund was distributed by the Ministry of Housing, Communities and Local Government (MHCLG) in 2019. The towns fund only covers England.

A series of regional mayors and council leaders have queried the way money from all three funds has been arranged, and why a number of notably deprived areas have seemingly missed out at the expense of better-off places.

A MHCLG spokeswoman said that rather than using just deprivation measures, the CRF “prioritises areas with low economic resilience, taking into account productivity, household income, unemployment, skills and population density to ensure we reach a wider range of areas that have been previously left behind, including rural areas”.
Newsletter

Related Articles

0:00
0:00
Close
Satirical Sketch Sparks Political Spouse Feud in South Korea
Indonesia Quarry Collapse Leaves Multiple Dead and Missing
South Korean Election Video Pulled Amid Misogyny Outcry
Asian Economies Shift Away from US Dollar Amid Trade Tensions
Netflix Investigates Allegations of On-Set Mistreatment in K-Drama Production
US Defence Chief Reaffirms Strong Ties with Singapore Amid Regional Tensions
Vietnam Faces Strategic Dilemma Over China's Mekong River Projects
Malaysia's First AI Preacher Sparks Debate on Islamic Principles
White House Press Secretary Criticizes Harvard Funding, Advocates for Vocational Training
France to Implement Nationwide Smoking Ban in Outdoor Spaces Frequented by Children
Meta and Anduril Collaborate on AI-Driven Military Augmented Reality Systems
Russia's Fossil Fuel Revenues Approach €900 Billion Since Ukraine Invasion
U.S. Justice Department Reduces American Bar Association's Role in Judicial Nominations
U.S. Department of Energy Unveils 'Doudna' Supercomputer to Advance AI Research
U.S. SEC Dismisses Lawsuit Against Binance Amid Regulatory Shift
Alcohol Industry Faces Increased Scrutiny Amid Health Concerns
Italy Faces Population Decline Amid Youth Emigration
U.S. Goods Imports Plunge Nearly 20% Amid Tariff Disruptions
OpenAI Faces Competition from Cheaper AI Rivals
Foreign Tax Provision in U.S. Budget Bill Alarms Investors
Trump Accuses China of Violating Trade Agreement
Gerry Adams Wins Libel Case Against BBC
Russia Accuses Serbia of Supplying Arms to Ukraine
EU Central Bank Pushes to Replace US Dollar with Euro as World’s Main Currency
Chinese Woman Dies After Being Forced to Visit Bank Despite Critical Illness
President Trump Grants Full Pardons to Reality TV Stars Todd and Julie Chrisley
Texas Enacts App Store Accountability Act Mandating Age Verification
U.S. Health Secretary Ends Select COVID-19 Vaccine Recommendations
Vatican Calls for Sustainable Tourism in 2025 Message
Trump Warns Putin Is 'Playing with Fire' Amid Escalating Ukraine Conflict
India and Pakistan Engage Trump-Linked Lobbyists to Influence U.S. Policy
U.S. Halts New Student Visa Interviews Amid Enhanced Security Measures
Trump Administration Cancels $100 Million in Federal Contracts with Harvard
SpaceX Starship Test Flight Ends in Failure, Mars Mission Timeline Uncertain
King Charles Affirms Canadian Sovereignty Amid U.S. Statehood Pressure
Trump Threatens 25% Tariff on iPhones Amid Dispute with Apple CEO
Putin's Helicopter Reportedly Targeted by Ukrainian Drones
Liverpool Car Ramming Incident Leaves Multiple Injured
Australia Faces Immigration Debate Following Labor Party Victory
Iranian Revolutionary Guard Founder Warns Against Trusting Regime in Nuclear Talks
Macron Dismisses Viral Video of Wife's Gesture as Playful Banter
Cleveland Clinic Study Questions Effectiveness of Recent Flu Vaccine
Netanyahu Accuses Starmer of Siding with Hamas
Junior Doctors Threaten Strike Over 4% Pay Offer
Labour MPs Urge Chancellor to Tax Wealthy Over Cutting Welfare
Publication of UK Child Poverty Strategy Delayed Until Autumn
France Detains UK Fishing Vessel Amid Post-Brexit Tensions
Calls Grow to Resume Syrian Asylum Claims in UK
Nigel Farage Pledges to Reinstate Winter Fuel Payments
Boris and Carrie Johnson Welcome Daughter Poppy
×