Rural communities and property groups have called on the government to address regional inequality.
The government’s algorithm for allocating its £4.8bn levelling-up programme is overlooking remote parts of England, instead favouring Red Wall areas, the Rural Services Network argues.
The organisation said the method does not account for lower wages or the difference in cost of living in rural and urban areas. As a result, just 18 districts have been placed on the government’s priority list of 123 local authorities, whereas it believes a more accurate algorithm would put this at 27.
RSN said large swathes of rural central and southern England, including many that previously received funds through EU-backed programmes, are now seen as low priority. It wants the government to revise the algorithm in the upcoming UK Shared Prosperity Fund.
Graham Biggs, chief executive of the Rural Services Network, said: “The way in which government allocates spending spatially is failing to unlock the opportunities rural areas can offer to the nation.”
“Whitehall needs to keep it simple. Allocate levelling-up funds to where living standards, and economic opportunities, are lowest – regardless of whether these are in the North or the South, or in towns, cities, conurbations or in countryside,” he added.
“If government economic and structural development funds were prioritised and allocated on the basis of local real incomes, there would be a clearer line of sight from the levelling up objective through to action on the ground.”
‘Ad hoc’ approach
The call follows ongoing criticism over rigid methodologies to fix financing. However, leading property groups say decisions should be devolved.
London Property Alliance and Sheffield Property Association say the main issue preventing the levelling up agenda is the lack of transport plan.
The groups have demanded government support for metro mayors and combined and local authorities in their rapid-transit system roll-outs. They have slammed the “lack of urgency and vision” on transport infrastructure, adding that the government’s commitment to HS2 should not be at the expense of regional transport investment.
The City Region Connectivity report, authored by JLL and backed by Greater Manchester mayor Andy Burnham, calls for greater devolution of decision-making and funding powers, to ultimately provide jobs, homes and economic growth.
Charles Begley, executive director at the London Property Alliance, said: “The ad hoc nature of transport investment and the absence of a clear and coherent strategy is one of the major barriers to levelling up and driving social and economic prosperity across all regions of the country.”
He added: “We urgently need to unlock the potential of all regions and this can only be achieved through uniting the country, not dividing it.”
Last month, Legal & General found the UK was a long way from levelling up, in its latest Rebuilding Britain Index. In particular, it said more investment was needed to deliver affordable housing in the south and greater employment opportunities in the North.
L&G chief executive Nigel Wilson said: “It is clear that the longer we wait in bringing forward further major schemes, the greater the risk of existing inequalities between and within our communities deepening further.”
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