Concerns have been raised by North East council chiefs as to whether the Government’s “Levelling Up” initiative has benefited the region economically. It was an issue brought up by Cllr Graeme Miller, Sunderland City Council leader, following a discussion around the economic recovery in the North East over recent months.
At Tuesday’s (July 12) meeting of North East Combined Authority (NECA) economic development digital advisory board, the Labour representative for Washington South queried whether the area had seen the impact of the Government’s “Levelling Up” plans. Cllr Miller said: “There doesn’t seem to be any evidence of any levelling up impacting on our economic picture.
“It’s important that if you’re going to back something as an economic driver for change, which is what levelling up claimed to be, then it isn’t delivered, local authorities are left with trying to do it. There is no movement compared to England of us [the North East] improving.”
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Rory Sherwood-Parkin, corporate lead for policy and insight at South Tyneside Council, noted in terms of indicators such as employment and child poverty the gap “hasn’t closed really” between the North East and the national average. He added the Government has introduced the Levelling Up Fund and UK Shared Prosperity Fund for regions to claim additional funding.
In the first round of bidding for Levelling Up Funding, Sunderland was successful in gaining £20million towards the development of a Housing Innovation and Construction Skills Academy (HICSA) and creation of new sustainable housing. However South Tyneside was unsuccessful, with council leader Tracey Dixon telling the meeting it “wasn’t for the wanting of trying” and they submitted a “very strong bid”.
Cllr Miller added while he was pleased Sunderland was successful, he was “disappointed” for South Tyneside, and criticised the “beauty contest” bidding process. He said: “It’s terrible that we have that bidding mechanism.
“The circumstances between Sunderland and South Tyneside are very, very similar and very, very close so it was just bizarre, but that’s the problem when they only give limited money.” Councillor Malcolm Brain, cabinet member for economy on Gateshead Council, added he had concerns whether “Levelling Up” such regions would be a priority going forward, amid the current Conservative leadership race.
He said: “There is no guarantee that the next government will feel any commitment to meeting those guarantees.”
Levelling Up Fund round 2 is now opens for bids for a share of £4.8 billion.
Greg Clark, the newly appointed Secretary of State for Levelling Up, Housing and Communities said: "I am determined to press full steam ahead with levelling up communities across the United Kingdom.
"The Levelling Up Fund can provide the investment needed to make a project that communities have been dreaming of for years a reality. So I’m delighted to open applications for the second round of the Levelling Up Fund and I’m looking forward to seeing proposals that will make a positive impact on people’s lives."
