London Daily

Focus on the big picture.
Monday, Jun 23, 2025

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
Starmer Invites Innovators to Join Government Talent Scheme
UK Economy’s Strong Opening Quarter Shows Signs of Cooling
Harrods Seeks Court Order to Secure Al Fayed Estate for Victims
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
BBC Demands Perplexity AI Immediately Stop Using Its Content
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
Political Turmoil Resurfaces in Belgium Amid Economic Concerns
Fed policymakers divided on timing of interest rate cuts
Trump signals imminent agreement with Harvard University
Inheritance tax referendum alarms Swiss billionaire community
Japan cancels bilateral security meeting amid US defence demands
AI skeptic Emily Bender warns that ‘the emperor has no clothes’
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
FBI and Senate Investigate Allegations of Chinese Plot to Influence the 2020 Election in Biden’s Favor Using Fake U.S. Driver’s Licenses
Vietnam Emerges as Luxury Yacht Destination for Ultra‑Rich
Plans to Sell Dutch Embassy in Bangkok Face Local Opposition
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump's $5 Million 'Trump Card' Visa Program Draws Nearly 70,000 Applicants
DGCA Finds No Major Safety Concerns in Air India's Boeing 787 Fleet
Airlines Reroute Flights Amid Expanding Middle East Conflict Zones
Elon Musk's xAI Seeks $9.3 Billion in Funding Amid AI Expansion
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Taiwan Imposes Export Ban on Chips to Huawei and SMIC
Israel has just announced plans to strike Tehran again, and in response, Trump has urged people to evacuate
Netanyahu Signals Potential Regime Change in Iran
Juncker Criticizes EU Inaction on Trump Tariffs
EU Proposes Ban on New Russian Gas Contracts
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
UK Home Secretary Apologizes Over Child Grooming Failures
×