Levelling Up Fund round two: the results

The results for round two of the Government’s Levelling Up Fund were announced on 19 January 2023, with more than 100 projects awarded funding of over £2.1 billion in total. The £4.8 billion fund was launched as part of Boris Johnson’s 2019 manifesto to level up communities across the UK by supporting economically struggling towns and cities.

The recent batch of projects which will receive funding include:

• £50 million to Lancashire City Council to transform Morecambe’s seafront into an Eden by the Bay, inspiring a sense of wonder in the natural world and drawing thousands of new visitors to the bustling seaside resort every year;
• Nearly £50 million to Cornwall Council to create a direct train service linking Newquay, St Austell, Truro and Falmouth alongside better walking and cycling access to stations;
• £20 million to Sandwell Metropolitan Borough Council for a new leisure centre in Rowley Regis which will replace the old Haden Hill Leisure Centre and revive sport and leisure facilities; and
• £14.5 million in Bristol for a project to provide new high quality housing, community and business space at Filwood Broadway and investment in the community centre and outdoor recreation areas.

In launching the results of round two, the Prime Minister said: “Through greater investment in local areas, we can grow the economy, create good jobs and spread opportunity everywhere. That’s why we are backing more than 100 projects with new transformational funding to level up local communities across the United Kingdom. By reaching even more parts of the country than before, we will build a future of optimism and pride in people’s lives and the places they call home.”

The awards have already attracted criticism from some who consider that a disproportionate number of the grants have been allocated in affluent areas of the country, particularly in the South East which received over £210 million of the funding (around 10%). However, following further analysis, there is evidence to suggest that the funds were allocated most generously to more deprived constituencies, and that round two is more evenly distributed than round one. The region which received the largest share of the fund was the North-West with 17%.

The allocations from highest to lowest per region are:

• North West: £354,027,146
• South East: £210,467,526
• Wales: £208,175,566
• South West: £186,663,673
• Scotland: £177,206,114
• East Midlands: £176,870,348
• East: £165,903,400
• West Midlands: £155,579,834
• London: £151,266,674
• Yorkshire and the Humber: £120,619,162
• North East: £108,548,482
• Northern Ireland: £71,072,373

The Department for Levelling Up, Communities and Housing has defended the critics, saying that all projects had been subject to a “rigorous assessment process under robust, fair and transparent rules”.

With round two now decided, around £1 billion still remains in the fund and we anticipate round three to be launched in the coming months.

Ashfords has been supporting their local authority clients with their Levelling Up Fund applications and projects, including advising on project structuring, joint ventures, procurement, real estate, construction and subsidy control assessments.

Please get in touch with our Public Sector Team to see how we can support you.

To view our previous articles on the Levelling Up Fund, please follow these links:

LU White Paper:
https://www.ashfords.co.uk/news-and-media/general/the-levelling-up-white-paper

LU Round 2:
https://www.ashfords.co.uk/news-and-media/general/levelling-up-round-2-what-you-need-to-know

To find out more about the new subsidy control regime, you can view our bitesize articles here:

Part 1 - What is a subsidy?

Part 2 - Prohibited and exempt subsidies

Part 3 - The subsidy control principles

For more information on the above contact the Public Sector team.