A long-delayed strategy to “level up” the country will finally be unveiled by ministers, but with a warning that only major new funds will make up for previous harsh spending cuts.
The white paper – to set out what Boris Johnson has called his government’s “moral mission” – was due last September, but has been held back by wrangles over cash and criticism that it lacks fresh ideas.
Now Michael Gove will publish the document, which will point to another shake-up of local government structures in England – but will not necessarily boost spending in left-behind areas.
In October, The Independent revealed how almost £2bn has been slashed from promised development funding, through a failure to match EU funding lost because of Brexit.
And job support groups have warned that vulnerable people at risk of long-term unemployment will be left without help, because of the cuts and delays to spending.
Mr Gove is believed to have a lost a battle with Rishi Sunak for more cash, leaving only existing pots such as the £4.8bn Levelling Up Fund and the post-Brexit Shared Prosperity Fund – worth £2.6bn over three years, not a promised £4.5bn.
Ahead of the white paper, he is announcing £120m of regeneration funding for 20 towns and cities, including Wolverhampton and Sheffield, to improve housing and leisure.
“We are on a mission to regenerate the nation, transforming derelict areas in our towns and cities into thriving places people are proud to live and work in,” said Mr Gove, the secretary of state for levelling up.
But Labour unveiled new research showing how areas allocated money from the Levelling Up Fund and the Towns Fund are still millions of pounds worse off because of the austerity drive dating back to 2010.
No fewer than 144 local authority areas are each £50m out of pocket, on average, said Lisa Nandy, Labour’s shadow levelling up secretary.
“For all the talk of levelling up, we have been completely short-changed. The prime minister has handed us a fiver, but nicked a tenner,” she said. “Instead of delivering good jobs in every part of Britain, the prime minister is hopelessly distracted trying to save his own. This must end now. It simply will not be good enough to give us more of the same – pots of our money to scrap over, without real power on what it’s spent on or a few new mayors.”
Ms Nandy set out five principles for levelling up; good jobs, thriving high streets, better transport connections, devolved power and safe town centres.
The government has suggested its strategy will be built on four foundations; empowering local leaders, growing the private sector, spreading opportunity and “restoring local pride”.
Mr Johnson has been on the back foot over the issue since a disastrous speech last year, in which he admitted he had only “a skeleton” of a plan.
