There are so many aspects of “Levelling Up” which are vulnerable to harsh criticism that it’s surprising that the Conservative Government sticks to this spending project. “Levelling Up” was a project started by former Prime Minister Boris Johnson, but it has been carried on by successive UK Governments.
The Government’s project is a political project. It’s a slogan. Maybe that should be no surprise.
One explanation for the project’s continuation can be found in Brexit. Whereas the regions of the UK received funds from the European Regional Development Fund (ERDF) matched by UK Government funds that source of funding was lost upon EU exit.
Redistribution is not new. A drive to improve social and economic conditions is popular, in principle. Creating more opportunities for areas suffering hardship makes sense. That said, this centralised distribution project is flawed in multiple ways.
For a start, any vox pop will show that no one really knows what it means. Some say that “Levelling Up” is when the Government spends in deprived or “left behind” areas.
Even this is doggy territory. There are without doubt areas of deprivation that need assistance. We need to ask, is a beauty contest run by Ministers the best way of lifting those areas out of their disadvantaged condition? Talk of “left behind” areas after decades of the stigmatisation of certain parts of the UK is hardly a positive way of regeneration.
I think the “Levelling Up” agenda has continued in its current form because of the oil tanker effect. That is the propensity of big spending initiatives to roll on regardless because they are difficult to stop. With little time to run to the next General Election (GE) inventing and implementing something new and more effective is just too politically risky.
This second round of funding, worth more than £2 billion, sounds like a lot of money but set in the context of annual UK Government spending of over £1000 billion[1] that doesn’t seem so much. Given that local government spending has been so heavily curtailed in recent years it is reasonable to say that this “Levelling Up” funding is a poor attempt at a replacement.
When central government picks projects to fund on this basis, it’s saying that it knows better than local government. Or is it that it knows how to win votes better than local government?
[1] In 2020/21 the government of the United Kingdom had a total managed expenditure of over 1053.3 billion British, an increase of over a 100 billion pounds when compared with 2018/19. Statista