Levelling up: what progress has been made?

7th Dec 2021

While progress has been made within highways and transport sector, the is an urge for the White Paper to be published to provide guidance and consistency on "levelling up" priorities across the UK. Although, the government's Levelling up White Paper, will be published early in the new year.

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What does levelling up mean?

The Government announced within the Queen's Speech to introduce a Levelling up White Paper, which was due to come out in 2020. This mentioned the White Paper presenting an opportunity to reset the relationship between central and local government and put councils at the heart of delivering the Government’s ambitious programme to improve opportunities in all parts of the country. 

Many have felt confused when hearing the term "levelling up" due to it being too vague, but the government seeks to clarify the meaning with the White Paper. Although, the government's Levelling up White Paper, has been delayed and will now be published early 2022.

What should levelling up achieve?

Michael Gove, the Secretary of State for the Department of Levelling up, Communities and Housing has said he wants to "simplify the system". 

The Secretary has said:

"he thinks the key to "levelling-up" communities is improving four areas; local leadership, living standards, public services and "pride of place".

While, CIHT support these four areas, there is a need for links between levelling up and decarbonisation of transport integrated throughout policy and practice. From an infrastructure perspective, the government need to co-ordinate levelling up and decarbonisation to address:

  • the current short-term skills gap enabling the workforce to transition with these agendas - up-skilling our workforce to gain more knowledge and understanding for net-zero and decarbonisation 
  • the need to transition our assets and networks to become more resilient - improving and maintaining both our rail and road network and delivering this safely
  • the need for sustainable and healthy transport - delivering green and blue infrastructure to improve biodiversity, active travel to improve air quality and place making to improve the standard of living

What progress has been made?

In March 2021, the government announced a £4.8 billion Levelling Up Fund contributing to investing in infrastructure that improves everyday life across the UK, including regenerating town centre and high streets, upgrading local transport, and investing in cultural and heritage assets.

CIHT also welcome the funding allocated to levelling up in the autumn budget and spending review. With, Rishi Sunak mentioning "levelling up would be a ‘golden thread’ running through the autumn budget and the spending review."

In November 2021, the UK government launched the new levelling up and community investments. There are three new investment programmes to support communities right across the country, this includes:

  • The UK Community Renewal Fund
  • The Levelling Up Fund
  • The Community Ownership Fund

It is clear that highways and transport is seen as instrumental to the Government's levelling up agenda and whilst CIHT welcomes the investments into the local highway network, there is concern that funding for rail, especially in Wales and in the North, falls short of what is required.

Recent rail cuts 

The government recently announced in the integrated rail plan that HS2’s northeastern leg and the new Leeds-Manchester line will not currently be built. In its place, the government committed to conducting a study to establish the most effective way to provide high speed rail to Leeds. 

The investment in new rail infrastructure is a key tool for both "levelling up" the regions and decarbonising transport. 

Louise Gittins, TfN interim chair said: 

"Instead of this top-down centralised approach they need to reach out and work with local communities, and businesses.

Despite our deep concerns that the IRP is woefully inadequate, the TfN board unanimously agreed that it wishes to explore with Government funding options for the delivery of the preferred NPR: options could include local contributions, including through harnessing local economic benefits."

Transport for the North’s director of Northern Powerhouse Rail Tim Wood said: 

"We have long highlighted the fact that the transport system in the North is not fit for purpose. It is largely Victorian infrastructure trying to cope with the needs of a 21st Century economy."

The Department for Transport seeks to cut rail operator spending by 10% after the chancellor Rishi Sunak’s autumn budget. 

These cuts can led to real impacts to rail services. Timetables are likely to be thinned out and late-night services withdrawn to cut costs.

It is important that investment in infrastructure and local transport support decarbonisation encouraging drivers to use public transport, as well as improving the divergence seen across the country - in order to level up - in regions where public transport provisions are scarce. 

Future of Levelling up

The autumn budget has allocated three years’ worth of funding without outlining its priorities for this ambitious and cross-departmental agenda. The challenge departments face are the risks of spending money allocated on incoherent or inconsistent policies rather than using the white paper to guide them.

I would argue that allocating funding to "levelling up" schemes should not be focused primarily on transportation and local high streets, but more importantly delivering skills in order to level up the UK. The main problem the UK faces is the productivity gap, as outlined within the Institute for Fiscal Study report in 2020.

There is no single set of factors that characterise a ‘left-behind’ place. In turn, this means there is no one-size-fits-all policy agenda.

The Institute for Fiscal Studies, October 2020

There is still a lot of confusion over what the measures of success for levelling up is exactly. CIHT's Comprehensive Spending Review response called for the government to provide:

  • Levelling Up: City and Regional Investment Outside of London
  • Skills Revolution
  • Climate Action: Commitment to Net Zero 2050

CIHT are keen to see how the white paper addresses what is expected from the ambitions and cross-departmental agenda. 

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