Levelling-up Fund: Delivery of Funds

3. What assessment he has made of the effectiveness of the process of delivering funds for successful levelling-up fund bids.

19. What assessment he has made of the effectiveness of criteria for awarding levelling-up funding.

My Department has undertaken a robust assessment and decision-making process in both rounds of the levelling-up fund. Taking on board feedback, we made a number of improvements to better support applicants in the most recent round, including by making £65 million of support available to help with the delivery of projects. We are currently reflecting on the lessons learned from the first two rounds of the fund, and we will be making an announcement on round 3 shortly.

It is deeply concerning to hear from Bridgend County Borough Council officers that the Minister’s officials are suggesting that any local authority that was successful in the second round will get no additional funding in the third round. My Ogmore constituency has lost out on all levelling-up funding, despite Department for Transport officials suggesting that the only way I could get a level crossing closure in my constituency was by accessing levelling-up funds. What assurances can the Minister give the officials in Bridgend County Borough Council and my constituents that the much promised levelling-up funding will be delivered to the people of Ogmore? Or is it another case of the Tories misleading the people of Wales?

I know the hon. Gentleman has been campaigning hard for the level crossing in his constituency. As I said, we are reflecting on lessons learned, but no decision has yet formally been made on allocations in round 3. We will keep the House updated.

North Edinburgh Arts in my constituency recently joined the City of Edinburgh Council in a project to provide a new state-of-the art venue in a deprived area, building on already vital work, but that project failed to receive funds in both levelling-up rounds. Only 21% of bids are currently successful, and only 8% of the funds are going to Scotland. Does the Minister think we should review the criteria to make applications more efficient, so that communities can benefit from the levelling-up fund?

I am certainly willing to meet the hon. Lady to discuss the project. It is worth noting that the allocations we have made to Scotland meet the commitments that we made in our first levelling-up fund prospectus, but of course we want to ensure that the funds reach the areas that need them most.

Given the soaring costs in the construction sector, many local authorities, including Pembrokeshire County Council in my constituency, will find it a real challenge to meet the full scope of their successful levelling-up bids. I know that the Minister has been proactive in reaching out to councils, but can she assure the House that she and her team will continue to provide all possible support for local authorities to ensure that money is spent well on meaningful projects that fulfil our levelling-up objectives?

I am grateful to my right hon. Friend for his engagement with his own levelling-up funding projects. As I have said, we have made £65 million available specifically to support the development and completion of projects, which will include some cost engineering in some cases, because we recognise that inflation has been extremely hard on the construction industry, but my officials and I stand ready to help in any way we can.

Halesowen town centre has recovered well from the covid pandemic, not least as a result of the work done by Vicky Rogers of the Halesowen business improvement district and Eve O’Connor of the Cornbow shopping centre, but we were not successful in the last round of levelling-up bidding. Will the Minister meet me to discuss the Halesowen bid and how it might need to be improved to meet any criteria for the third round?

My hon. Friend’s council will now have received written feedback explaining why the bid was not successful, but he is a fantastic champion for Halesowen, and I shall of course be happy to meet him to discuss the project further.

I call the Chair of the Levelling Up, Housing and Communities Committee.

The Committee recently produced a report on levelling-up funding, which I hope the Minister has had a chance to read by now. Commenting on the current arrangements, we said that despite the Government’s commitment to reducing requirements for competitive bidding, we had seen no evidence that it had yet been implemented. We were also shocked to discover that the Department did not know how many

“pots of money across Government contribute towards levelling up”.

Does the Minister accept the Committee’s finding that the policy currently lacks

“a long-term, substantive strategy and funding approach”,

and does she agree that the Government need to sort this out if levelling up is to be delivered—given that, in principle, there would probably be widespread support for that on both sides of the House?

I disagree with the Select Committee Chair, in that we do have a long-term vision for levelling up. Indeed, our White Paper “Levelling Up the United Kingdom” set out our 12 core missions. I have engaged with the hon. Gentleman in the past about the funding point. I have also told the House that we will be publishing a funding simplification plan; that is coming soon, and I shall be happy to meet him to discuss it when it has been published.

I call the shadow Minister.

Nearly 18 months after the publication of the levelling up White Paper, instead of meaningful levelling up, all that we have is disorganisation and disappointment. The levelling-up directors were supposed to cut through the dysfunction to help areas obtain the support that they needed, and it was announced with great fanfare that there were nearly 600 applications for those roles. But as with everything this Department does, it was all smoke and mirrors, because the roles have now been quietly dropped and no levelling-up directors are to be appointed. Will the Minister come clean? The Government have given on levelling-up directors because they have given up on levelling up, have they not?

Absolutely not.