Public spending in the North East has fallen behind the England average despite the Government’s flagship “levelling up” policy, a think tank has said.
As the candidates for the Conservative leadership are being questioned on their commitment to the levelling up agenda, think tank IPPR North said that recent years have been more “business as usual”. That came after the organisation’s analysis of public spending showed that per-person public spending was higher in real terms in northern England in 2019 than the England average, but had fallen behind by 2021.
Although public spending has increased in every region of England, the think tank said its research show the rise in spending over the last three years was slowest in the North East at 16%. London saw the highest total per-person public spending and the highest increase, up 25% to £19,231.
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IPPR North said it also examined the data while excluding the spending on health and Covid support to allow for the impact of the pandemic, but that it found the same trend, with £11,505 per person public spending in 2021 in the North, up 2% on 2019, compared to the England average of a 3% increase to £11,524.
Marcus Johns, a research fellow at IPPR North, said: “On public spending, the money simply didn’t follow the levelling-up rhetoric. Although an increase in public spending on 2019 was welcome, and absolutely essential, spending is lower – and grew slower in the North – than in other parts of the country.
Commenting on the report, shadow communities secretary Lisa Nandy said: “These figures are scandalous. For all the Tory promises to people in the North, regional inequality has got worse since Boris Johnson became Prime Minister. And now the two continuity candidates scrapping to replace him are vying for the mantle of Margaret Thatcher.
“It’s now blindingly obvious that the Conservatives’ commitment to levelling up is dead. But levelling up is not dead. The next Labour government will give power to communities, invest to bring good jobs to every community, and ensure every part of the country has the backing to make a contribution again.”
A Government spokesperson said: “We do not recognise these figures and are pressing full steam ahead with levelling up the North. We are transforming the rail network with £96bn investment to deliver faster and more reliable journeys, creating thousands of jobs with freeports in Teesside and the Humber, and supporting projects that improve everyday life with our £4.8bn Levelling Up Fund.
“We also understand the pressures facing local authorities, which is why we made an additional £3.7bn available to councils in recognition of their vital role and to ensure they are able to deliver key services.”
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