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Most UK Levelling Up Projects Remain Incomplete Years After Funding Allocation

Freedom of information data reveals that 57% of regional regeneration initiatives across the UK are still unfinished, leaving dozens of council areas without a single completed scheme.

Most UK Levelling Up Projects Remain Incomplete Years After Funding Allocation
Image: The Guardian Business

At a glance

  • Freedom of information data shows 821 of 1,347 levelling up projects across the UK were incomplete as of May.
  • A total of 73 local council areas with approved bids have not seen a single project reach full completion.
  • Delays have been driven by inflation and centralised bidding, pushing consolidated project deadlines back to 2028.

More than half of the UK's regional levelling up initiatives remain incomplete years after receiving funding allocations, according to freedom of information data released as of May this year.

The analysis, obtained by Groundwork Research and examined by the Guardian, found that 821 of 1,347 projects had not been finalised. Furthermore, 73 local authority areas that secured funding had not seen a single project cross the finish line. While 59 projects have finished since the data was initially gathered, 57% of the total schemes remained unfinished, excluding 69 initiatives that were cancelled or merged into others.

Slower project completion rates were particularly pronounced in Wales, Scotland, and Northern Ireland, despite those regions handling fewer initiatives overall. In England, Yorkshire and the North West experienced low delivery rates, though both regions had been awarded the highest number of projects from the outset.

Individual councils continue to face major backlogs. In Leeds, none of the eight funded initiatives have closed, leaving projects such as the Morley town hall refurbishment, the station gateway transport link, and green housing retrofits in Holbeck incomplete. Blackburn with Darwen council also had not completed any of its eight designated regeneration schemes.

Rising inflation has contributed significantly to the stalled progress, driving up construction costs and forcing local authorities to pause or scale back approved work. The findings cover the Future High Streets Fund started in 2018, Town Deals from 2019, and the Levelling Up Fund launched in 2021.

Criticism of Centralised Bidding

Policy experts argued that the structure of the funds hampered delivery. Zoë Billingham, director of the IPPR North thinktank, criticised the initiative for fostering a "begging bowl culture" reliant on short-term pots instead of sustainable long-term strategies. Andy Haldane, former chief economist at the Bank of England, noted that centralised decision-making led to inefficiencies and political favouritism in fund allocation.

Under the Labour government, the Levelling Up Fund and Town Deals were consolidated into the Local Regeneration Fund, pushing spending deadlines out to March 2028. The government also introduced the £5.8bn Pride in Place programme, which offers 10-year funding allocations managed by local boards.

A spokesperson for the Ministry of Housing, Communities and Local Government stated that the administration is committed to giving local leaders stability through targeted funding, noting that the Local Regeneration Fund is helping deliver previous funding streams more rapidly.

Source: The Guardian Business.

Questions and answers

How many levelling up projects are currently unfinished?
Data shows that 821 out of 1,347 projects—about 57%—were not finalised as of May, with 73 council areas having zero completed projects, though 59 schemes have completed since the figures were collected.
Why have so many levelling up projects been delayed?
Delays were largely caused by high inflation increasing project expenses and forcing councils to pause or scale back plans, alongside challenges with centralised bidding systems and the time required for major capital projects.
What changes has the Labour government made to these funds?
Labour merged the Levelling Up Fund and Town Deals into the Local Regeneration Fund, extending deadlines to March 2028, and introduced the £5.8bn Pride in Place programme to give local boards long-term funding control.
levelling upuk politicslocal governmentregenerationinfrastructure

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