Andy Rumfitt, head of Business Cases and Funding at Turley, reflects on what the future of levelling up looks like following the party conferences.
Following this year’s Conservative Party Conference, it’s clear to see that the Government’s approach to levelling up has fundamentally changed.
Firstly, much of the discussion around levelling up during the conference was absorbed by speculation about the status of HS2, which was ultimately cancelled in favour of Rishi Sunak’s ‘Network North’ — with £36bn dedicated to a number of smaller indicative transport projects across the north of England (and elsewhere).
Secondly, we saw the Government change the way in which it allocates levelling up funds and move away from a competitive bidding approach, the time-consuming and often unsuccessful nature of which has long been seen as problematic by many local authorities.
Instead, the Government unveiled a ‘long term plan for towns’, which will see £1.1bn invested into 55 towns over the next 10 years allied with up to 20 Levelling Up Partnerships.
Conversely, the Labour Party conference did not articulate precisely what levelling up under a Labour government would entail either, although their shared endorsement of the policy of devolution was clear. Further work is required to cement how exactly a Labour government would deliver devolution in practice. However, regardless of whichever party wins the next election, a renewed focus on devolution is set to be popular across the board.
So then, what does this new outlook on levelling up mean from a local perspective?
How can local authorities embrace devolution?
The UK’s experience with practical devolution of power away from central government has typically focused on city regions. In the cases of Greater Manchester or the West Midlands, devolution has worked well, in part, due to the fact these areas have a particularly strong sense of identity.
Leadership from mayoral figures such as Andy Burnham and Andy Street helps drive levelling up across the city regions, and provides a sense of direct accountability for progress, with elected officials working to deliver for the greater good of their region and generally setting aside political ideology.
If these are the models of devolution adopted more widely, we need to ensure these executive bodies are tied in closely with existing local authorities that can help drive change at a more localised level within these broader city regions and ensure funding is directed towards where it is needed most.
Ultimately, devolving power is all well and good, but this must be backed with a devolution of funding. If Government cannot financially uphold devolution, then it is essentially just passing down existing issues to local authorities without empowering them or providing the financial means to deal with the issues, which leads to low-level infighting amongst councils whereby very little tangible progress is made.
The need for a long-term regeneration plan
The Government bringing competitive funding to an end is a noteworthy shift in levelling up practice. Round 2 of the Levelling Up Fund resulted in 100 projects being awarded, however, over 500 bids were submitted, meaning roughly 80% of entrants being discontent with the result.
Pitting countless local authorities against each other resulted in nationwide bidding fatigue, so it is high time that the Government proposed a different approach and reviewed how best to distribute funding on the basis of need.
Post-conference, things are clearer. At present, the plan is that 55 ‘overlooked’ towns across the UK will receive £20m each to spend over the next 10 years – or £2m per year. The idea is that spending will be led by residents, putting more power in the hands of people who have a greater knowledge of where exactly money needs to be spent to futureproof communities in the most optimal way possible.
The proposed approach certainly brings a more cohesive approach to levelling up local communities, encouraging local entities to partner with central government in a much more effective and open way.
Crucially, there is now a focus on regeneration in the long term, which feels like the final piece of the puzzle for many local authorities.
Although towns being given £2m to spend per year perhaps doesn’t look like much money, to begin with, looking ahead to the long term means that a coherent system which promotes some much-needed stability around levelling up is finally being prioritised.
Final thoughts
If the Government’s plans to level up the country are to stand any hope of succeeding, then upholding its commitment to measures such as a new approach to allocating funds, opening communication between central and local government, and a renewed long-term approach are key.
The Government must look at levelling up through a local lens and continue putting local government organisations at the heart of the agenda. Ultimately, this is the only way to successfully deliver on its ambitious programme to improve opportunities and reduce inequalities throughout all parts of the UK.
