Levelling-up Fund Round 2

Patricia Gibson Excerpts

Thursday 19th January 2023 Commons Chamber

[Lucy Frazer]

My hon. Friend makes a number of important points. Local councils were informed last night that we can improve on that. There were successful and unsuccessful areas, and that is because this levelling-up round was so successful. Some £8 billion-worth of bids were made, so of course there will be unhappy people this morning. However, £2 billion-worth have been successful.

On my hon. Friend’s second point, we will be providing feedback because there will be a third round and we want people to understand why they were not successful in this one.

[Patricia Gibson (North Ayrshire and Arran) (SNP)]

Scotland’s share of the funding is £177 million out of £2 billion—some 8.5%. That proves that the distribution of the funding is not needs-based at all and therefore, by definition, not levelling up. Around £1.1 billion of the £1.6 billion total levelling-up funding in England has been awarded to areas where there is a Tory MP or a majority of Tory MPs. The Chancellor’s constituency, one of the most affluent in the UK, has been successful; my own constituency of North Ayrshire and Arran, one of the most economically challenged constituencies in the UK, has not been successful in this round.

Let us not forget that the last successful bids, which took place last October, were based on costings at that time. However, labour and material costs have soared. Unless the funds are renewed, the bids cannot be delivered as envisaged and therefore they cannot level up as anticipated at the time. Is it not the case that the whole so-called levelling-up pantomime is more about Tory PR, spin and pork barrel politics than any attempt to reduce inequality?

[Lucy Frazer]

The answer to that point is absolutely not. The hon. Member forgot to mention that Scotland got £177 million—[Interruption.] The total is £349 million across both funds. The Opposition are making points about party politics, so I would like to point out that 45% of investment across both rounds has been allocated to areas held by Opposition parties.