Martin Ford 01 July 2021

Levelling up funds risk 'amplifying regional inequalities'

Levelling up funds risk amplifying regional inequalities image

Efforts to level-up could result in embedding regional inequalities, a new report from the Chartered Institute of Public Finance and Accountancy (CIPFA) has found.

The report published today is critical of the current approach of bidding for pots of money.

CIPFA found it risks awarding funds based on the ability to create a bid rather than need, putting ‘smaller, less resilient councils at a disadvantage’ and ‘amplifying regional inequalities’.

The report added: ‘The money provided through levelling up does not alleviate any of the current local government funding problems and in some cases will increase the burden on local authorities.’

CIPFA’s local government policy manager Joanne Pitt said: ‘Levelling up funding cannot be used as a way of influencing voters to the detriment of good decision making.

‘Areas most in need of funding should be supported and allowed to engage with this national policy based on sound economic judgment rather than a ballot paper.'

CIPFA also recommended incorporating the Industrial Strategy into its forthcoming successor, the Plan for Growth to avoid ‘uprooting nearly four years of effort’.

Chief economist Jeffrey Matsu said: ‘Levelling up, net zero and a vision for global Britain were already being addressed by the Industrial Strategy’s four grand challenges and 10 sector deals.

‘Why not build on this approach rather than restart?’

The report raised concerns over a lack of ‘clear understanding of how success will be measured’ and urged the Government to be candid about what to expect in the Spending Review.

It added: ‘Trade-offs exist and it would be better for the Government to confront these difficult but necessary choices by making, at times, unpopular decisions.

‘To pretend that there will not be both winners and losers when attempting to level the playing field may, ultimately, erode public trust.’

SIGN UP
For your free daily news bulletin
Highways jobs

Director of Public Health

Royal Borough of Greenwich
Up to £131,210
The Public Health department is at the heart of the council’s business. Greenwich, London (Greater)
Recuriter: Royal Borough of Greenwich

Head of Regeneration and Growth

Plymouth City Council
£68,387 - £74,411 (MFS and relocation available, pay award pending)
This is a unique opportunity to lead our award-winning development team and directly deliver hundreds of millions of pounds of projects. Plymouth, Devon
Recuriter: Plymouth City Council

Director of Adult Social Care

Wiltshire Council
£119,390 - £127,137
Join us as the Director of Adult Social Care and make a real difference to people’s lives. Wiltshire
Recuriter: Wiltshire Council

Assistant Director Planning, Performance & Engagement

East Sussex County Council
up to £97,700
With strong local communities, unspoilt countryside and vibrant coastal towns, East Sussex offers an exceptional quality of life to many. East Sussex
Recuriter: East Sussex County Council

Director of Finance & Commerce

Lancashire County Council
Up to £114,339
You will play a critical role in driving the organisation through complex change and innovation. Lancashire
Recuriter: Lancashire County Council
Linkedin Banner