London Daily

Focus on the big picture.
Wednesday, Apr 01, 2026

Revealed: levelling up fund allocated south-east twice as much as north-east

Revealed: levelling up fund allocated south-east twice as much as north-east

New figures raise further questions about failure of government fund to reach the poorest areas of UK

The south-east of England, the most affluent region in Britain outside London, last year received almost twice as much money as the north-east from the government’s levelling up fund aimed at boosting deprived areas.

Projects in the south-east benefited from £9.2m from the fund in the year to 31 March 2022. By comparison, the north-east only received £4.9m, despite being the poorest region in Britain by disposable household income.

The £4.8bn fund is under scrutiny over its failure to date to deliver to some of the poorest areas of the country. There are also questions over the criteria for allocating money after the former chancellor, Rishi Sunak, told an audience that he changed funding formulas to divert money from “deprived urban areas”.

Ministers want the multi-billion pound fund to provide a cash boost to some of the poorest areas of the UK, but the new figures obtained under freedom of information laws reveal that just £107.4m of funds were delivered in the year to 31 March 2022.

Source: Department for Levelling Up, Housing and Communities, FOI disclosure


Jack Shaw, a researcher into local government who obtained the new figures, said: “With less than 3% of the levelling up fund having been spent in its first year, the rhetoric of levelling up hasn’t matched the reality.

“The government needs to be clear about why that is the case and why [the north-east] despite the focus on correcting regional imbalances, has received less than 5% of the fund’s spending to date.”

Initially, it was hoped that £600m would be delivered in 2021/22 by the fund. The figure was revised downwards to £200m, but not even that target has been hit.

The new figures reveal the West Midlands received the most money in 2021/22, with projects receiving £16.3m of funds. Northern Ireland received the smallest amount, with projects receiving just over £1m of cash, equivalent to 57p per head of population.

While the north-east received less funds than the south-east in 2021/22, it did receive more per head of population: £1.83 per capita, compared to the £1 per head of population received in the south-east.

Officials say they allocated £1.7bn in the first round of funding in which the successful bidders were announced in October last year. Bids for the second round closed last month.

Lisa Nandy called for an inquiry into why the funds had not reached some of the poorest areas.


In the 2020 spending review, Sunak announced the launch of the levelling up fund to support towns and communities with regeneration schemes. It will run over four years from 2021/22 to 2024/25.

The methodology for allocating awards has faced criticism for not using deprivation levels to rank areas for priority funding.

Lisa Nandy, the shadow levelling up secretary, called for an inquiry into why some of the poorest communities have so far missed out in levelling up awards.

A spokesperson for the Department for Levelling Up, Housing and Communities said: “This is a selective use of figures and does not accurately represent allocations from the first round of the Levelling Up Fund, where the North and Yorkshire are receiving £519m, more than the south-east and London combined.

“We are working closely with all levels of government to relentlessly drive forward our shared ambition to fuel regeneration and growth in areas which have been overlooked and undervalued for far too long.”

Newsletter

Related Articles

0:00
0:00
Close
King Charles Plans US State Visit as UK Strengthens Ties with Trump Leadership
UK Regulator Launches Investigation Into Microsoft’s Business Software Practices
Kanye West Set for High-Profile Return to UK Stage at Wireless Festival
Trump Presses Europe to Strengthen Commitment as Iran Conflict Escalates
UK to Deploy Additional Troops to Middle East Amid Rising Regional Tensions
UK Authorities Face Claims of Heavy-Handed Measures in Monitoring Released Pro-Palestine Activists
Trump Calls on UK to Secure Its Own Energy as Iran Conflict Intensifies
Nigel Farage Declines Invitation to UK Conservative Conference Led by Liz Truss
Trump Warns Allies to Take Responsibility as Rift Deepens with UK and France Over Iran Conflict
How Britain’s Prime Minister Controls U.S. Bomber Access in Escalating Iran Conflict
Trump Urges Allies to Secure Their Own Oil Supplies as Hormuz Crisis Disrupts Global Energy
Russia Expels British Diplomat as UK Pushes Back Against Pressure
White House App Faces Scrutiny After Claims of Continuous User Location Tracking
BBC Faces Scrutiny Over Allegations of Paid Content Linked to Saudi Arabia
UK-France Coastal Patrol Agreement Nears Breakdown Amid Migration Pressures
UK Police Detain Pro-Palestine Activist Again Weeks After Bail Release
FTSE 100 Advances as Energy and Mining Shares Gain Amid Middle East Tensions
Eli Lilly Seeks UK Pricing Deal to Unlock Renewed Pharmaceutical Investment
Three Arrested in UK After Massive Cocaine Haul Discovered Hidden in Banana Shipment
UK Fuel Prices Poised for Further Surge Amid Global Energy Pressures
Apple Subsidiary Penalized by UK Authorities for Breach of Moscow Sanctions
Western Allies Intensify Coordinated Sanctions Strategy Against Russia
UK Lawmakers Face Criticism Over Renewed Push for Social Media Restrictions
Starmer Signals UK Crackdown on Addictive Social Media Features
Rising Costs Push One in Five UK Hospitality Businesses to the Brink of Closure
Man Arrested on Suspicion of Attempted Murder After Car Strikes Pedestrians in UK, Injuring Seven
Escalating Conflict Involving Iran Tightens Fiscal Pressures and Highlights UK Economic Vulnerabilities
UK Moves to Confront Russian ‘Shadow Fleet’ Operating in Its Waters
UK Housing Divide Deepens as Older Owners Hold Wealth While Under-30s Face Mounting Barriers
London Demonstration Calls on UK to Recognize Iranian Opposition’s Provisional Government
UK Green Party Vote on ‘Zionism is Racism’ Motion Collapses Amid Internal Disputes and Technical Failures
SNL UK Ignites Debate with Sharp Royal Satire Targeting Prince Andrew and Prince William
EU Proposes ‘Emergency Brake’ to Resolve Deadlock in UK Youth Mobility Talks
Thousands Rally in London to Oppose Rise of Far-Right Movements
Hong Kong Official Rejects Allegations of Surveillance Orders Targeting UK-Based Dissidents
PayPal Expands Cryptocurrency Services to Allow UK Users to Buy and Sell Bitcoin
UK Minister Challenges Reform Party’s ‘Pro-Family’ Agenda as Debate Intensifies
Concerns Grow Over Meningitis Risk Among UK Students Amid Warning Signs of New Outbreaks
Japanese Grand Prix 2026: Schedule, UK Start Times and Full Broadcast Details
Electric Vehicles Seen as Strategic Solution to UK Fuel Reserve Concerns
Rise of Lone-Actor Threats and Online Radicalisation Drives New Wave of Antisemitic Attacks in the UK
Canada Advances Plan to Ban Cryptocurrency Donations in Election Campaigns
UK Faces Looming Medicine Shortages as Iran Conflict Threatens Supply Chains
Deadly Meningitis Outbreak in the U.K. Highlights Urgent Need for Vaccination
Fresh Claims Emerge Over Harry and Meghan’s Australia Visit as Insider Speaks Out
NATO Assessment Indicates UK Defence Spending Has Fallen Below Alliance Average
FTSE 100 Slips as Middle East Tensions Weigh on Investor Sentiment
UK Economy Begins to Feel Early Impact of Iran Conflict as Policy Challenges Intensify
Russian National Jailed in UK After Assault Case Linked to Barron Trump’s Alert
Energy Price Surge Accelerates Shift Away from Fossil Fuels in UK Homes
×