The spending watchdog of parliament has discovered that Rishi Sunak’s plan to promote social and economic equality is facing significant delays. The government is unable to provide any noteworthy examples of the progress made so far.
The PAC reported that very few of the 71 “ready-to-go” projects scheduled to be finished by the end of this month are progressing as planned.
The chair of the committee, Dame Meg Hillier, stated that the amount of delay uncovered in one of the government’s top policy initiatives is incredibly surprising.
Most of the projects that successfully received funding in the first rounds of levelling up are now facing delays and will potentially experience more delays in the future.
According to the report, councils have only spent £1.05bn out of the promised £10.5bn. By December, the Department for Levelling Up, led by Michael Gove, has distributed £3.7bn, which accounts for a little over one-third of the promised funds.
Hillier stated that the Department of Education, headed by Gove, seemed to have been overly optimistic in choosing to fund projects that were not actually ready to be executed, disregarding other potential projects that could have had a significant impact.
The Members of Parliament were both worried and taken aback by the lack of a long-term plan for evaluating the success of this ambitious agenda.
After winning the 2019 general election, Boris Johnson made it his main goal to level the playing field and improve the lives of those in neglected areas of the UK.
However, the project has struggled to make progress under the leadership of his two successors in 10 Downing Street, and has faced additional setbacks due to rising inflation and challenges with funding from local authorities.
The Conservative party had anticipated being able to highlight their success in implementing leveling up before the upcoming general election, but according to the Parliamentary Accounts Committee (PAC), the government has not been able to present any convincing instances so far.
The bipartisan committee of Members of Parliament stated that it had requested three instances of initiatives that had achieved transformation.
Gove’s team provided two instances as illustrations. One involved expanding a tram route in the West Midlands, while the other included funding a college in Northumberland.
The report from the PAC stated that the department provided examples that, while significant to their communities, were relatively minor in comparison to the substantial and persuasive examples that the department should have had readily accessible at this point.
71 projects that received funding in the initial bidding round were expected to use the funds by the end of this month, but roughly 60 of them have been postponed until the following fiscal year.
According to the report, it was surprising to discover that the first round of funding for the levelling up program was given to projects that were meant to be finished and benefiting the community by March 2024.
Lawmakers also condemned the actions of Gove’s department for altering the regulations for requesting levelling up money during the middle of the bidding period, leading to municipalities squandering limited public resources.
A study revealed that 55 boards had used around £30,000 each in attempts to secure funds that were ultimately unattainable due to modifications in government regulations, resulting in a total wastage of approximately £1.6 million.
Labour’s shadow secretary for levelling up, Angela Rayner MP, stated that the Conservatives have completely given up on their goal of levelling up Britain.
This report states that the Conservative Party’s method of seeking funding bids has resulted in a waste of limited public resources. This has caused local government agencies to use valuable resources and time to apply for funds, even though many of them are unlikely to receive the funding.
“Labour’s strategy will involve discontinuing the short-term solutions pursued by the Conservatives and instead offering lasting financial commitments to community representatives. This will give them more confidence and the opportunity to strategize for the future.”
According to Henri Murison, the chief executive of the Northern Powerhouse Partnership established by George Osborne, the initial announcement of this fund gave rise to our apprehensions regarding the Treasury’s method of a bidding process, which we believed would be inefficient and arduous.
“This has been confirmed, leaving local governments vulnerable to significant inflation, especially within the construction industry, resulting in increased project expenses.”
The levelling up department’s spokesperson stated: “We take pride in our commitment of £15 billion since 2019 towards areas that are often forgotten, by forming significant devolution deals and transferring control and funding away from Westminster. This investment has resulted in the rejuvenation of town centres, the development of new infrastructure, and the promotion of community growth throughout the UK.”
“Constructing buildings is not an immediate process, and these projects typically span over several years. As a result, an increase in capital expenditure in subsequent years is anticipated. However, we are committed to providing skilled assistance to local councils in addressing any obstacles to timely project completion.”
Source: theguardian.com
