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Rishi Sunak has announced that more than £2bn will be invested in over 100 projects across the UK through the levelling up fund – with £19m going to his own constituency.

Reinforcing his commitment to levelling up the country, the prime minister promised the latest round of funding would “build a future of optimism” by delivering economic growth and new jobs across the UK.

Labour criticised the fund, accusing the government of presiding over a “Hunger Games-style contest where communities are pitted against one another”.

A spreadsheet of the 111 successful bids released by the Department for Levelling Up shows that £19,008,679 has been granted to a project in Mr Sunak’s Richmond constituency after an application by the local district council.

The document says: “Richmondshire will receive £19m to transform Catterick Garrison town centre. This includes new routes for walking and cycling, a new town square, and a new community facility that will host new businesses and a community kitchen.”

Speaking to broadcasters in a visit to Accrington, the prime minister defended the decision.

“If you look at the overall funding in the levelling-up funds that we’ve done, about two-thirds of all that funding has gone to the most deprived part of our country,” he said.

Prime Minister Rishi Sunak meets stall holders during a community project visit to Accrington Market Hall in Lancashire, as a £2 billion investment in over 100 projects across the UK, through the levelling up fund has been announced. Picture date: Thursday January 19, 2023.
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Prime Minister Rishi Sunak meets stall holders during a community project visit to Accrington Market Hall

“With regard to Catterick Garrison, the thing you need to know is that’s home to our largest army base and it’s home to actually thousands of serving personnel who are often away from their own families serving our country.

“It’s important that they have access to a town centre providing the amenities they need – that’s what that funding is going to deliver.”

Levelling Up Secretary Michael Gove also defended the funding allocations, telling Sky News the government had “objective criteria that govern where money is going”.

Among the other projects is the Eden Project North in Morecambe, which receives £50m for a regeneration project designed to transform the Lancashire town’s seafront.

Also on the list is the Cardiff Crossrail plan, which has been allocated £50m of government funds – and a new roll-on, roll-off ferry for Fair Isle in the Shetlands is to receive £27m.

The government said the £2.1bn in funding had been split between £672m to develop better transport links, £821m for community regeneration, and £594m to go towards restoring local heritage sites.

Mr Gove said: “These are areas which have been overlooked in the past by previous governments – but this government is absolutely committed to levelling up, to spreading opportunity and to investing in the future and making sure that people have, whether it’s investment in higher education here or investment in economic activity elsewhere, the opportunity to prosper in the future.”

Projects in London, however, have received more investment than those in Yorkshire and the North East combined, and projects in the South East have been allocated almost twice as much as those in the North East.

Levelling up funding has caused even more friction


Political correspondent Joe Pike

Joe Pike

Political correspondent

@joepike

Over 13 years of Conservative governments, we have seen the transition from George Osborne’s “Northern Powerhouse” project (which some argue laid the groundwork for the Tories’ 2019 “red wall” wins) to Boris Johnson’s “Levelling Up” and now Rishi Sunak’s own interpretation of that policy.

Grumbles from MPs in the Conservatives’ southern heartlands have clearly been noted in Whitehall. Today the South East has received more cash than the North East, Yorkshire, or the East or West Midlands.

While a number of affluent areas benefit, there is also funding for deprived communities in the south like parts of the Kent coast.

Michael Gove points out, very fairly, that North West England is the biggest winner.

But that includes millions for marginal Tory-held seats in Blackpool, as well as Workington and Copeland in Cumbria. More than twice as many Conservative seats benefit than Labour ones.

Allegations of favouritism are not, however, Labour’s only critique of this £2.1 billion funding injection.

Lisa Nandy claims that 15 months after the first round of allocations, just 5% of the money has made it to the communities who were promised it.

She also says the Conservatives are effectively offering a “partial refund” for money stripped out of communities in recent years, and Labour’s devolution plan is a far better solution than an occasional round of government funding.

Whitehall sources point out both Ms Nandy and Sir Keir Starmer’s constituencies are benefitting to the tune of almost £30m.

Ultimately it is ministers who make the final decisions and today’s figures show you are more likely to get a grant if you have a Conservative MP.

Read more:
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Landmark levelling up white paper is published

‘Centralised system of decision making flawed’

Some Conservative MPs expressed dissatisfaction at their local communities not having been allocated funding in the latest wave.

Robert Largan said he was “bitterly disappointed” that High Peak Borough Council had once again failed to secure £20m in investment.

While Conservative Mayor of the West Midlands Andy Street questioned why the majority of his region’s bids had been rejected.

“Fundamentally, this episode is just another example as to why Whitehall’s bidding and begging bowl culture is broken, and the sooner we can decentralise and move to proper fiscal devolution the better,” he said in a statement.

“The centralised system of London civil servants making local decisions is flawed and I cannot understand why the levelling up funding money was not devolved for local decision makers to decide what is best for their areas.”

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Labour: ‘Govt bears responsibility’

‘Time to end this Hunger Games-style contest’

While Lisa Nandy, shadow levelling up secretary, criticised the fund more generally and accused the government of “extraordinary arrogance”.

“The Levelling Up Fund is in chaos, beset by delays and allegations of favouritism,” she said.

“It takes an extraordinary arrogance to expect us to be grateful for a partial refund on the money they have stripped out of our communities, which has decimated vital local services like childcare, buses and social care.

“It is time to end this Hunger Games-style contest where communities are pitted against one another and Whitehall ministers pick winners and losers.”

But Mr Sunak said two thirds of funding was going to the north of England and denied the levelling up spending is an example of “pork barrel politics”.

“The region that has done the best in the amount of funding per person is the North,” he said.

“That’s why we’re here talking to you in Accrington market, these are the places that are benefiting from the funding.

“We’re delivering on what we said, we’re investing in local communities, this is levelling up in action.”

Ten projects in Scotland will share £177m of levelling up funding, including £20m to help turn Arbuthnot House in Aberdeenshire into a museum and library, as well as modernising Macduff Aquarium, and £20m to refurbish the Palace Theatre in Kilmarnock.

Other investments granted include:

• £20m to Gateshead Quays and the Sage
• £5.1m to build female changing rooms in 20 rugby clubs across Northern Ireland
• £50m to create a direct train service linking Newquay, St Austell, Truro and Falmouth/Penryn in Cornwall
• £40m for a new Multiversity – a carbon-neutral education campus in Blackpool’s Talbot Gateway central business district

Boris Johnson attends the COP27 summit in November 2022. Pic: AP
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Boris Johnson made ‘levelling up’ a key phrase and mission during his time as PM

Levelling up was a key Tory policy under Boris Johnson when he was prime minister.

“The defining mission of this government has been to level up this country, to break the link between geography and destiny so that no matter where you live you have access to the same opportunities,” Mr Johnson said as he unveiled the government’s levelling up white paper last year.

The latest successful bids follow the allocation of £1.7bn to 105 projects from round one of the levelling up fund in 2021.

The government confirmed last year that round two funding would match round one, but said it increased this by more than £400m after receiving a high number of bids.

The total allocated so far from the fund to local community projects is £3.8bn.

The government has also confirmed there will be a further round of investment.

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Hamas says it will not disarm unless an independent Palestinian state is established as Israeli fire kills 18 in Gaza

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Hamas says it will not disarm unless an independent Palestinian state is established as Israeli fire kills 18 in Gaza

Hamas has said it will not disarm unless an independent Palestinian state is established with Jerusalem as its capital.

The militant group said it was issuing a statement “in response to media reports quoting US envoy Steve Witkoff, claiming [Hamas] has shown willingness to disarm”.

It continued: “We reaffirm that resistance and its arms are a legitimate national and legal right as long as the occupation continues.

“This right is recognised by international laws and norms, and it cannot be relinquished except through the full restoration of our national rights – first and foremost, the establishment of an independent, fully sovereign Palestinian state with Jerusalem as its capital.”

Hamas also condemned Mr Witkoff’s visit to an aid distribution centre in Gaza on Friday as “nothing more than a premeditated staged show”.

Donald Trump’s Middle East envoy Mr Witkoff and Mike Huckabee, the US ambassador to Israel, visited a centre run by the controversial Gaza Humanitarian Foundation (GHF).

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Trump envoy Witkoff visits Gaza

Hamas said the trip was “designed to mislead public opinion, polish the image of the occupation, and provide it with political cover for its starvation campaign and continued systematic killing of defenceless children and civilians in the Gaza Strip”.

Mr Witkoff said he spent “over five hours in Gaza”. In a post on X on Friday, he said: “The purpose of the visit was to give [President Trump] a clear understanding of the humanitarian situation and help craft a plan to deliver food and medical aid to the people of Gaza.”

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Gaza health officials have said 18 people, including eight who were trying to access food, were killed by Israeli fire on Saturday.

Witness Yahia Youssef told Reuters news agency he helped carry three people wounded by gunshots and saw others lying on the ground near a food distribution centre.

In response to questions about several eyewitness accounts of violence at one of its facilities, GHF said “nothing [happened] at or near our sites”.

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The US- and Israel-backed GHF has been marred by controversy and fatal shootings ever since it was set up earlier this year.

According to the United Nations’ human rights office, at least 859 people have been killed “in the vicinity” of GHF aid sites since late May.

The war in Gaza began when Hamas-led militants killed around 1,200 people, mostly civilians, in an attack on Israel on 7 October 2023 and abducted 251 others. Of those, they still hold around 50, with 20 believed to be alive, after most of the others were released in ceasefires or other deals.

Israel’s retaliatory offensive has killed more than 60,000 Palestinians, according to Gaza’s Hamas-run health ministry, which does not differentiate between militants and civilians in its count.

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North Korea’s opened its doors to Russian tourists. So… how was their holiday?

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North Korea's opened its doors to Russian tourists. So... how was their holiday?

The world’s most secretive state is a mystery for billions of people – but not Anastasiya Samsonova.

She has returned from a week’s holiday in North Korea.

“We saw nothing terrible there, there is no danger there,” the 33-year-old HR manager tells me.

“Frankly speaking, we really liked it.”

She was part of a group of 15 Russian tourists who were the first foreign visitors to a new seaside resort, which was opened to great fanfare by North Korea’s leader Kim Jong Un in June.

Her holiday snaps show a white sand beach, shimmering seas and high-rise hotels. But something’s missing – people.

Russian tourist Anastasiya Samsonova at the Wonsan-Kalma beach resort in North Korea. Pic: Anastasiya Samsonova
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Anastasiya Samsonova at the Wonsan-Kalma beach resort in North Korea. Pic: Anastasiya Samsonova

There are rows of sun loungers, but not a soul sitting on them. A glittering banquet hall that’s devoid of diners.

That’s because, when it comes to international tourists, the Wonsan-Kalma resort is currently only open to Russians.

“The hotel was absolutely new,” Anastasiya enthuses, unfussed by the absence of others.

“Everything was done very beautifully, a good interior … very developed infrastructure.”

Russian tourist Anastasiya Samsonova enjoying a meal on a train in North Korea. Pic: Anastasiya Samsonova
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Pic: Anastasiya Samsonova

But why not Turkey? Or Thailand?

I gently suggest that people in Britain might be shocked at the idea of a summer break in a country better known for famines and forced labour than parasols and pina coladas.

“We were interested in seeing how people live there,” Anastasiya explains.

“There were a lot of prejudices about what you can and can’t do in North Korea, how you can behave. But actually, we felt absolutely free.”

Russian tourist Anastasiya Samsonova reading a North Korean newspaper. Pic: Anastasiya Samsonova
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Pic: Anastasiya Samsonova

Anastasiya is one of a growing number of Russians who are choosing to visit their reclusive neighbour as the two allies continue to forge closer ties following the Kremlin’s invasion of Ukraine.

Last year, North Korean troops supplied military support in Russia’s Kursk region, and now there is economic cooperation too.

North Korean produce, including apples and beer, has started appearing on supermarket shelves in Russia’s far east.

And last month, Moscow launched direct passenger flights to Pyongyang for the first time in decades.

North Korean apples on sale in Russia. Pic: Danil Biryukov / DVHAB.RU
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Pic: Danil Biryukov / DVHAB.RU

But can this hermit nation really become a holiday hotspot?

The Moscow office of the Vostok Intur travel agency believes so. The company runs twice-weekly tours there, and I’m being given the hard sell.

“North Korea is an amazing country, unlike any other in the world,” director Irina Kobeleva gushes, before listing some unusual highlights.

“It is a country where you will not see any advertising on the streets. And it is very clean – even the asphalt is washed.”

She shows me the brochures, which present a glossy paradise. There are images of towering monuments, pristine golf greens and immaculate ski slopes. But again, no people.

Irina Kobeleva, director of Vostok Intur travel's Moscow office
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‘There is a huge growing demand among young people,’ Irina Kobeleva says

Ms Kobeleva insists the company’s tours are increasingly popular, with 400 bookings a month.

“Our tourists are mostly older people who want to return to the USSR,” she says, “because there is a feeling that the real North Korea is very similar to what was once in the Soviet Union.

“But at the same time, there is a huge growing demand among young people.”

Sure enough, while we’re chatting, two customers walk in to book trips. The first is Pavel, a young blogger who likes to “collect” countries. North Korea will be number 89.

“The country has opened its doors to us, so I’m taking this chance,” he tells me when I ask why he wants to go.

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For pensioner Tatiana, the reason is sentimental.

“My husband wanted to go there, but now he’s gone. So I want his wish to come true,” she says.

It’ll certainly cost them. One week’s trip that takes in Pyongyang, a circus and the new beach resort, costs roughly £1,500 without flights.

At that price, I suspect most tourists will be content for this secretive state to remain hidden.

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US trade war: The state of play as Trump signs order imposing new tariffs – but there are more delays

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US trade war: The state of play as Trump signs order imposing new tariffs - but there are more delays

Donald Trump’s trade war has been difficult to keep up with, to put it mildly.

For all the threats and bluster of the US election campaign last year to the on-off implementation of trade tariffs – and more threats – since he returned to the White House in January, the president‘s protectionist agenda has been haphazard.

Trading partners, export-focused firms, customs agents and even his own trade team have had a lot on their plates as deadlines were imposed – and then retracted – and the tariff numbers tinkered.

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While the UK was the first country to secure a truce of sorts, described as a “deal”, the vast majority of nations have failed to secure any agreement.

Deal or no deal, no country is on better trading terms with the United States than it was when Trump 2.0 began.

Here, we examine what nations and blocs are on the hook for, and the potential consequences, as Mr Trump’s suspended “reciprocal” tariffs prepare to take effect. That will now not happen until 7 August.

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Why was 1 August such an important date?

To understand the present day, we must first wind the clock back to early April.

Then, Mr Trump proudly showed off a board in the White House Rose Garden containing a list of countries and the tariffs they would immediately face in retaliation for the rates they impose on US-made goods. He called it “liberation day”.

The tariff numbers were big and financial markets took fright.

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What does the UK-US trade deal involve?

Just days later, the president announced a 90-day pause in those rates for all countries except China, to allow for negotiations.

The initial deadline of 9 July was then extended again to 1 August. Late on 31 July, Mr Trump signed the executive order but said that the tariff rates would not kick in for seven additional days to allow for the orders to be fully communicated.

Since April, only eight countries or trading blocs have agreed “deals” to limit the reciprocal tariffs and – in some cases – sectoral tariffs already in place.

Who has agreed a deal over the past 120 days?

The UK, Japan, Indonesia, the European Union and South Korea are among the eight to be facing lower rates than had been threatened back in April.

China has not really done a deal but it is no longer facing punitive tariffs above 100%.

Its decision to retaliate against US levies prompted a truce level to be agreed between the pair, pending further talks.

There’s a backlash against the EU over its deal, with many national leaders accusing the European Commission of giving in too easily. A broad 15% rate is to apply, down from the threatened 30%, while the bloc has also committed to US investment and to pay for US-produced natural gas.

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Millions of EU jobs were in firing line

Where does the UK stand?

We’ve already mentioned that the UK was the first to avert the worst of what was threatened.

While a 10% baseline tariff covers the vast majority of the goods we send to the US, aerospace products are exempt.

Our steel sector has not been subjected to Trump’s 50% tariffs and has been facing down a 25% rate. The government announced on Thursday that it would not apply under the terms of a quota system.

UK car exports were on a 25% rate until the end of June when the deal agreed in May took that down to 10% under a similar quota arrangement that exempts the first 100,000 cars from a levy.

Who has not done a deal?

Canada is among the big names facing a 35% baseline tariff rate. That is up from 25% and covers all goods not subject to a US-Mexico-Canada trade agreement that involves rules of origin.

America is its biggest export market and it has long been in Trump’s sights.

Mexico, another country deeply ingrained in the US supply chain, is facing a 30% rate but has been given an extra 90 days to secure a deal.

Brazil is facing a 50% rate. For India, it’s 25%.

What are the consequences?

This is where it all gets a bit woolly – for good reasons.

The trade war is unprecedented in scale, given the global nature of modern business.

It takes time for official statistics to catch up, especially when tariff rates chop and change so much.

Any duties on exports to the United States are a threat to company sales and economic growth alike – in both the US and the rest of the world. Many carmakers, for example, have refused to offer guidance on their outlooks for revenue and profits.

Apple warned on Thursday night that US tariffs would add $1.1bn of costs in the three months to September alone.

Barriers to business are never good but the International Monetary Fund earlier this week raised its forecast for global economic growth this year from 2.8% to 3%.

Some of that increase can be explained by the deals involving major economies, including Japan, the EU and UK.

US growth figures have been skewed by the rush to beat import tariffs but the most recent employment data has signalled a significant slowdown in hiring, with a tick upwards in the jobless rate.

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The big risk ahead?

It’s the prospect of another self-inflicted wound.

The elephant in the room is inflation. Countries imposing duties on their imports force the recipient of those goods to foot the additional bill. Do the buyers swallow it or pass it on?

The latest US data contained strong evidence that tariff charges were now making their way down the country’s supply chains, threatening to squeeze American consumers in the months ahead.

It’s why the US central bank has been refusing demands from Mr Trump to cut interest rates. You don’t slow the pace of price rises by making borrowing costs cheaper.

A prolonged period of higher inflation would not go down well with US businesses or voters. It’s why financial markets have followed a recent trend known as TACO, helping stock markets remain at record levels.

The belief is that Trump always chickens out. He may have to back down if inflation takes off.

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