The government has acknowledged that less than 20% of the projects authorized by Michael Gove to enhance towns throughout England have been finished. This is the most recent indication of the challenges the levelling up agenda is encountering.
According to data obtained through freedom of information requests, less than 20% of the projects approved for the £3.6bn towns fund by Gove’s department will be completed by the end of February. Additionally, less than half of the projects are projected to be finished by the next election, even if it takes place in November, according to the statistics.
The information is a recent illustration of the challenges the Conservatives have faced in fulfilling their pledges from the previous election to utilize post-Brexit opportunities in order to lessen regional disparity in England.
Last year, The Guardian reported that local councils were forced to reduce or halt their plans to level up due to expenses and that the Department of Michael Gove had returned £2 billion of housing funds due to difficulties in finding suitable projects to allocate it towards.
According to Jack Shaw, an expert on local government who discovered these numbers, the government was expected to prioritize and deliver new infrastructure in areas that have historically been overlooked, especially since it was a key campaign promise in the past general election.
“The combination of inflation and interest rates has hindered the advancement of certain projects. Additionally, the government’s lack of response to these fluctuations has resulted in them requesting that communities lower their goals. Based on current evidence, it appears that the government will not fulfill their promise to promote equal opportunities among communities by the time of the election.”
Following the recent election, Gove declared the establishment of the towns fund, vowing to provide necessary funding and assistance to underdeveloped towns in order to kickstart their long-term goals.
The fund served as a crucial component of his strategy to promote equal development in areas beyond London and major cities. Some of the proposed projects include establishing an investment zone near Blackpool airport, constructing an industrial center in Grimsby, and revitalizing Bedford’s train station.
Unfortunately, since that time, significant inflation has significantly affected the budget allocated to Gove’s projects, posing challenges in their completion. In fact, The Guardian revealed that last year alone, at least £500m had been depleted due to increasing costs, resulting in delays and setbacks for leveling up initiatives, including leisure facilities, commercial areas, cultural institutions, and publicly accessible areas.
Numerous councils have delayed or decreased their plans due to increased expenses, and some report facing a time-consuming and bureaucratic process in gaining approval from Whitehall officials for modifications to the initial plans.
In November, a report from Thurrock council revealed that they were facing difficulties due to increased inflation.
The council was due to spend £22.8m on improving Tilbury town centre, including a new community hub, a youth centre, new cycle paths and a new jetty. In November local officials warned there had been “significant cost price inflation” since the plans were submitted, forcing them to review the entire scheme to make sure the council did not overspend.
The report stated that the confirmation of business cases has been significantly delayed because the levelling up department and the commissioners require further reassurance and assessment work regarding governance.
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According to Shaw’s findings, only 154 out of 973 projects funded by the towns have been completed by the end of February. The number increases to 385 by the end of November, which is only 40% of the total projects.
Over 170 projects are expected to be completed by March 2026, which is the set deadline by Gove for utilizing all the funds allocated to the towns. Some projects may continue beyond this date, but this may be attributed to leveraging additional sources of funds for their completion, according to officials.
The Department for Levelling Up, Housing and Communities announced that all the funds designated for the towns fund will be utilized by March 2026 as intended, with over 100 projects already finished. The pace of project completion aligns with our set delivery timelines.
The Labour party stated that the issues were another sign of Westminster officials attempting to control how local governments allocate their funds nationwide.
The shadow minister for levelling up, Justin Madders, stated that the Conservative Party’s method of levelling up is like begging for resources. This approach requires leaders to put in a lot of effort and spend taxpayers’ money to compete for limited and conditional funding. This approach will not equip local leaders with the necessary resources to foster growth and reach their full potential.
Source: theguardian.com
