Levelling Up Fund
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| Levelling Up Fund | |
|---|---|
 | |
| Name | Levelling Up Fund |
| Established | 2020 |
| Jurisdiction | United Kingdom |
| Parent agency | HM Treasury |
| Responsible minister | Secretary of State for Levelling Up, Housing and Communities |
Levelling Up Fund
The Levelling Up Fund was a UK capital investment programme launched in 2020 intended to finance infrastructure and regeneration projects across England, Scotland, Wales, and Northern Ireland. It aimed to support transport, town centre, and cultural projects to address disparities highlighted by reports such as the Industrial Strategy and debates in the House of Commons and House of Lords. The programme intersected with policy initiatives led by the Prime Minister of the United Kingdom, Chancellor of the Exchequer, and the Department for Levelling Up, Housing and Communities.
Background and objectives
The scheme emerged amid political commitments from the Conservative Party (UK) manifesto and speeches by the Prime Minister of the United Kingdom alongside fiscal frameworks set by the HM Treasury and influenced by inquiries from the Public Accounts Committee, National Audit Office, and think tanks like the Institute for Government. Its stated objectives were to invest in transport schemes linked to Department for Transport priorities, urban regeneration aligned with the Ministry of Housing, Communities and Local Government remit, and cultural infrastructure tied to the Department for Digital, Culture, Media and Sport. The policy responded to regional disparities reported in research from the Office for National Statistics, the Joseph Rowntree Foundation, and the RSA (Royal Society for the encouragement of Arts, Manufactures and Commerce).
Governance and administration
Administration involved coordination between central departments including HM Treasury, the Cabinet Office, and the Department for Levelling Up, Housing and Communities, with oversight by ministers such as the Secretary of State for Levelling Up, Housing and Communities and input from agencies like the National Audit Office and the Local Government Association. Delivery relied on partnerships with local institutions such as combined authorities (e.g., Greater Manchester Combined Authority), unitary authorities (e.g., Birmingham City Council), and devolved administrations including the Scottish Government, Welsh Government, and the Northern Ireland Executive. Decision-making featured competitive bidding, appraisal by civil servants from the Treasury and sector specialists from the Department for Transport and DCMS (Department for Digital, Culture, Media and Sport).
Funding rounds and allocations
The fund distributed capital via rounds announced in fiscal statements by the Chancellor of the Exchequer and allocations defined in guidance published by the Department for Levelling Up, Housing and Communities. Initial allocations followed the Spending Review cycles and interacted with other funding lines such as the UK Shared Prosperity Fund, the Town Deal, and the Community Renewal Fund. Governance arrangements referenced precedents from programmes managed by the Ministry of Housing, Communities and Local Government and evaluations by the National Audit Office. Allocation decisions considered geography and political representation involving MPs from constituencies across regions including North East England, West Midlands, Yorkshire and the Humber, and South West England.
Eligible projects and selection criteria
Eligible capital projects included transport schemes consistent with Department for Transport priorities, regeneration of high streets similar to projects supported by the Future High Streets Fund, and cultural and heritage investments relating to institutions like the British Museum, Royal Albert Hall, or regional theatres. Local authorities, mayoral combined authorities such as the West Midlands Combined Authority, and historic bodies like Historic England could lead bids. Selection criteria emphasized deliverability, value for money judged against HM Treasury Green Book guidance, strategic fit with local industrial strategies, and co-funding from bodies such as the European Investment Bank or private sector partners like Transport for London or construction firms associated with major contractors.
Impact, criticisms, and controversies
The fund prompted debate in the House of Commons and scrutiny from the National Audit Office and Public Accounts Committee about transparency, geographic targeting, and electoral timing. Critics including opposition parties such as the Labour Party (UK) and commentators in outlets linked to BBC News and The Guardian argued that allocations showed partisan bias toward marginal constituencies similar to accusations in previous programmes like the Community Infrastructure Fund. Supporters cited case studies evaluated by the Institute for Fiscal Studies and local research by universities like the London School of Economics and University of Manchester that reported benefits in transport connectivity and cultural regeneration. Disputes arose over project delivery, cost escalation resembling controversies in projects overseen by Highways England and procurement disputes involving contractors active in United Kingdom construction industry.
Notable projects and regional distribution
Selected awards included transport upgrades in regions administered by bodies such as the Tees Valley Combined Authority and urban regeneration in local authority areas including Liverpool City Council and Newcastle City Council. Cultural investments were made in venues affiliated with networks like the Arts Council England and heritage works supported by Historic England in cities like Bristol, Edinburgh, and Cardiff. The distribution across regions showed concentrations in North West England, South East England, and the Midlands (England), with allocations in devolved nations coordinated with the Scottish Government and Welsh Government and projects in Northern Ireland involving the Department for Infrastructure (Northern Ireland). Notable beneficiaries included transport upgrades linked to Network Rail projects, town centre regeneration in former industrial towns, and refurbishment of cultural institutions with ties to national bodies such as the British Council.