The Levelling Up Fund, created by former Prime Minister Boris Johnson, is a highly competitive fund in place to strengthen the local economy and invest in areas most in need of support. This includes coastal towns and deprived areas, with the aim of levelling up opportunities across the UK. Through this scheme, areas must bid for investment on the projects they have prioritised leading to local MP’s providing support on two bids before official judgement. Controversy has stemmed from this approach as certain projects may spread over multiple constituencies which can involve MP’s from other parties.
In January 2023 the Levelling Up Fund awarded £2.1bn to various projects.
The 59 million awarded to the North East has been split between three projects in South Tyneside, Stockton-on-Tees and a restoration facility to sustain the use of the River Tyne.
£20m will be provided to South Tyneside in order to strengthen the South Shields riverside through three projects. These include the relocation of South Tyneside College closer to the town centre, a net zero centre at Holborn Renewable Energy Network and the redevelopment of Customs House. This would hope to improve the footfall in the city and aims to renew classrooms and performance areas as well as establishing educational visits.
The leader of South Tyneside Council, Cllr Tracey Dixon, described the development as ‘fantastic news’ and added “I’m delighted that the government has recognised the strength of our original bid.”
This comes with the aim to create more than 700 new jobs whilst protecting existing ones
Almost £20m will go toward the restoration facility focused on sustaining the use of the River Tyne and access to the Quays. This comes with the aim to create more than 700 new jobs whilst protecting existing ones. The leader of Newcastle City Council, Cllr Nick Kemp, stated “Shipbuilding is an iconic part of our industrial heritage associated with the River Tyne and today the area has evolved into a global hub for offshore renewable energy manufacturing.”
There will also be a further £20m handed to Billingham to revitalise the town centre, with an aim to gain some control back from private owners. Political conflict on the matter of Billingham sparked as the Conservatives made claims that the Labour-led council had been “sitting on” millions.
This was the third attempt to gain levelling up funding for Billingham as their council had lost out twice before. Councillor Nigel Cooke expressed his admiration for receiving the funding, “It’s a fantastic town with huge potential and now we have a golden opportunity before us to bring about real transformational change.”
Stockton-on-Tees holds the lowest life expectancy for women in England, and citizens from the area have had their say on the fund. A retired decorator, Nick Winn expressed his thoughts saying “The North-East lacks investment and people do resent Westminster. Most of them, if you said where’s Stockton, they couldn’t pick it out on a map.”
Winn went on further to label the scheme a “gimmick” adding “levelling up is just a catchphrase.”
Criticism of the Levelling Up Fund came around due to significant amounts going toward affluent and Conservative-held areas. The Levelling Up Secretary Michael Gove stated that this fund is provided with the intention of delivering change in “overlooked and undervalued” areas. Rishi Sunak previously had to deny that the funding favoured the South and that the allocations were an attempt to shore up support in Tory areas.
Whilst the latest allocation of funding is in place with the hope of improving areas which need it and strengthening the economy, it has been proven that the fund is not enough to benefit all areas in need. This is also not having much of an impact on the cuts to local authorities which have fallen considerably in the last decade. It is hoped in the future, funding will be allocated differently rather than a gambling bid and it will be enough to see through the desired change.
