The leading think tank for the north of England, IPPR North, has calculated that £1 in every £13 allocated through the Levelling Up and Shared Prosperity Funds will be lost to inflation.
They say the chancellor’s move not to “inflation-proof” levelling up – a flagship policy of the Conservative’s 2019 manifesto – means that £560m will be lost from these two key pots of funding:
- £223m will be lost from the Shared Prosperity Fund, the government’s replacement for EU structural funds over the next three years.
- £340m will be lost from the Levelling Up Fund, named after the government’s flagship agenda, over the same period.
Zoë Billingham, director of IPPR North, said the government is showing an “ever-weakening grip” on levelling up the north.
She said: “This autumn statement leans on local government to raise council tax, just as people are suffering from the soaring cost of living, double digit inflation and stagnant economic growth. This is the wrong call.
“Progress on agreeing devolution deals around the country is welcome, as is the decision to effectively scrap investment zones, as IPPR North has called for, and replace them with university led clusters.
“Overall, the government is showing an ever-weakening grip on levelling up the country.
Investing in and growing our regions is how we grow the UK economy. Northern Powerhouse Rail in skeleton form and levelling up funding eroded by high inflation won’t cut it.”
Source: Skynews.com