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Rishi Sunak has said northern England will “disproportionately benefit” from levelling up funding as he rejected suggestions schemes have been picked to shore up support in Tory areas.

Levelling up was a key policy under former PM Boris Johnson, who said he wanted to reduce the economic imbalance between the North and South.

But as part of the latest £2.1bn of support for local projects, almost £362m will be spent in London and the South East, while £354m will go to the North West.

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What is levelling up?

Politics hub: Labour hits out at Rishi Sunak using plane for levelling up funding trip

On a visit to Lancashire to promote the funding announcements, Mr Sunak insisted there was a “huge” difference in funding on a per capita basis, with the North West coming out on top.

“We are completely committed to levelling up across the United Kingdom,” he said.

“If you look at how we are spending this money it is disproportionately benefiting people in the North East, the North West, and that’s great.”

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Mr Sunak denied the funding allocations were motivated by an attempt to shore up support in Tory seats.

It was put to him that his cabinet has more members representing Surrey than the north of England, and if this has impacted the decision-making process.

“I think around half the funding we have announced over the course of today, or both funds, has actually gone to places that are not controlled by Conservative MPs or councils,” he said.

Prime Minister Rishi Sunak speaks during a Q&A session at The Platform in Morecambe
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Prime Minister Rishi Sunak speaks during a Q&A session at The Platform in Morecambe

“I don’t think anyone can say it’s being done on that basis, there’s a completely objective, transparent criteria.”

Mr Sunak also faced criticism that many deprived areas missed out on the funding, while his own Richmond constituency in North Yorkshire was awarded £19m.

The PM defended the regeneration of the Catterick Garrison high street, saying the funding would deliver the amenities needed by troops living there.

Centralised system of decision making flawed’

Speaking in the Commons earlier, Communities Minister Lucy Frazer said £8bn of bids were made for the funding, with around £2bn approved to 100 projects.

The £2bn allocated comes from the overall £4.8bn levelling up fund announced in 2020.

Some Conservative MPs expressed dissatisfaction at their local communities not having made the cut.

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.”

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

And a regional breakdown of the funding shows:

  • Yorkshire and the Humber: £120,619,162
  • West Midlands: £155,579,834
  • Wales: £208,175,566
  • South West: £186,663,673
  • South East: £210,467,526
  • Scotland: £177,206,114
  • Northern Ireland: £71,072,373
  • North West: £354,027,146
  • North East: £108,548,482
  • London: £151,266,674
  • East Midlands: £176,870,348
  • East: £165,903,400

Analysis in The Times indicated 52 Tory constituencies in England benefit – more than twice as many as those represented by Labour MPs.

Mr Sunak said the money allocated would boost growth, local pride and allow people to stay closer to where they grew up without feeling the need to move to the capital.

The PM has previously faced accusations of favouritism after leaked footage emerged of him telling Tory members in Kent how as chancellor he had channelled funding away from “deprived urban areas” to “make sure areas like this are getting the funding they deserve”.

The Q&A came amid criticism for using a jet to get to Lancashire rather than relying on the train.

Mr Sunak toured Accrington market on Thursday before heading to Morecambe, where £50m will support the Eden Project North attraction.

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

During a walkabout on the site of the project, one passer-by shouted: “Lend us 20 quid for my heating bill, Rishi.”

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

‘Rock-bottom’ allocation of funding

But shadow communities minister Alex Norris questioned “what on earth” that criteria was.

Speaking in the Commons, he told MPs: “There’s a rock-bottom allocation for Yorkshire and the Humber, nothing for the cities of Birmingham, Nottingham and Stoke, nothing for Stonehouse in Plymouth, a community in the bottom 0.2% for economic activity.

“But money for the prime minister’s constituency, money for areas in the top quartile economically. What on earth were the objective criteria used to make these decisions?”

Shadow levelling up secretary Lisa Nandy said the fund was a “Hunger Games-style contest” which only offered a partial refund for resources stripped out of communities through austerity measures.

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‘Nobody likes Trump’: Sky News finds defiance on the streets of Tehran

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'Nobody likes Trump': Sky News finds defiance on the streets of Tehran

To the sound of mournful chants and the slow beat of drums, they march, whipping their backs with metal flails.

It is an ancient ceremony going back almost 14 centuries – the Shia commemoration of Ashura.

But this year in particular has poignant significance for Iranians.

The devout remember the betrayal and death of the Imam Hussein as if it happened yesterday.

The Shia commemoration of Ashura in Tehran, 2025
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Iranians gather ahead of Ashura

The Shia commemoration of Ashura in Tehran, 2025

We filmed men and women weep as they worshipped at the Imamzadeh Saleh Shrine in northern Tehran.

The grandson of the Prophet Muhammad was killed by the armies of the Caliph Yazid in the seventh century Battle of Karbala.

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Shia Muslims mark the anniversary every year and reflect on the virtue it celebrates – of resistance against oppression and injustice. But more so than ever this year, in the wake of Israel and America’s attacks on their country.

The story is one of prevailing over adversity and deception. A sense of betrayal is keenly felt here by people and officials.

The Shia commemoration of Ashura in Tehran, 2025
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Men and women weeped as they worshipped at the Imamzadeh Saleh Shrine

Many Iranians believe they were lured into pursuing diplomacy as part of a ruse by the US.

Iran believed it was making diplomatic progress in talks with America, which it hoped could lead to a deal. Then Israel launched its attacks and, instead of condemning them, the US joined in.

“Death to Israel” chants resounded outside the mosque in skies that for 12 days were filled with the sounds of Israeli jets.

There is a renewed sense of defiance here.

One man told us: “The lesson to be learned from Hussein is not to give in to oppression, even if it is the most powerful force in the world.”

I don't think about Trump. Nobody likes him," one woman tells Sky News
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‘I don’t think about Trump. Nobody likes him,’ one woman tells Sky News

A woman was dismissive about the US president.

“I don’t think about Trump. Nobody likes him. He always wants to attack too many countries.”

Pictures on billboards nearby link Imam Hussein’s story and current events. They show the seventh century imam on horseback alongside images of modern missiles and drones from the present day.

The Shia commemoration of Ashura
The billboard illustrates the 7th century imam on horseback alongside missiles and drones from the present day

Other huge signs remember the dead. Iran says almost 1,000 people were killed in the strikes, many of them women and children.

Officially Iran is projecting defiance, but not closing the door to diplomacy.

Government spokeswoman Dr Fatemeh Mohajerani told Sky News that Israel should not even think about attacking again.

“We are very strong in defence, and as state officials have announced, this time Israel will receive an even stronger response compared to previous times. We hope that Israel will not make such a mistake.”

Government spokeswoman Dr Fatemeh Mohajerani told Sky News that Israel should not even think about attacking again
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Dr Fatemeh Mohajerani said it would be a mistake for Israel to attack again

But there is also a hint of conciliation. Senior Iranian officials have told Sky News back-channel efforts are under way to explore new talks with the US.

Israel had hoped its attacks could topple the Iranian leadership. Those hopes proved unfounded. The government is in control here.

For many Iranians it seems quite the opposite happened – the 12-day war has brought them closer together.

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Two security workers injured after grenades thrown at aid site, Gaza Humanitarian Foundation says

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Two security workers injured after grenades thrown at aid site, Gaza Humanitarian Foundation says

Two American security workers in Gaza were injured after grenades were thrown during food distribution in Khan Younis, the Gaza Humanitarian Foundation (GHF) has said.

In a statement, the US and Israeli-backed aid group said a targeted terrorist attack was carried out at one of its sites in southern Gaza on Saturday morning.

The two Americans injured “are receiving medical treatment and are in stable condition,” it said, adding that the delivery of aid was “otherwise successful” and that “no local aid workers or civilians were harmed”.

GHF didn’t say exactly when the incident happened but claimed Hamas was behind the attack, adding: “GHF has repeatedly warned of credible threats from Hamas, including explicit plans to target American personnel, Palestinian aid workers, and the civilians who rely on our sites for food.

“Today’s attack tragically affirms those warnings.”

Later, the aid group posted a picture on social media, which it said showed “fragments of a grenade packed with ball bearings” that was used in the attack.

Asked by Sky’s US partner network, NBC News, whether the two injured individuals were responsible for handing out aid or were responsible for providing security, GHF said they were “American security workers” and “two American veterans.”

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The aid group did not provide specific evidence that Hamas was behind the attack.

The US and Israeli-backed group has been primarily responsible for aid distribution since Israel lifted its 11-week blockade of the Gaza Strip in May.

Read more:
Hamas gives ‘positive’ response to ceasefire proposal
Outcry as Israeli strike hits school
94 killed in Israeli strikes in Gaza, health staff say

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It comes after Sky News analysis showed GHF aid distributions are associated with a significant increase in deaths in Gaza.

According to Gaza’s health ministry, 600 Palestinians have been killed while seeking aid from GHF sites as of 3 July, which charities and the UN have branded “death traps”.

Meanwhile, the Associated Press has reported that Israeli-backed American contractors guarding GHF aid centres in Gaza are using live ammunition and stun grenades.

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Contractors allege colleagues ‘fired on Palestinians’

GHF has vehemently denied the accusations, adding that it investigated AP’s allegations and found them to be “categorically false”.

Israel’s military added that it fires only warning shots and is investigating reports of civilian harm.

It denies deliberately shooting at any innocent civilians and says it’s examining how to reduce “friction with the population” in the areas surrounding the distribution centres.

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Hamas gives ‘positive’ response to ceasefire proposal but asks for amendments

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Hamas gives 'positive' response to ceasefire proposal but asks for amendments

Hamas has said it has “submitted its positive response” to the latest proposal for a ceasefire in Gaza to mediators.

The proposal for a 60-day ceasefire was presented by US President Donald Trump, who has been pushing hard for a deal to end the fighting in Gaza, with Israeli Prime Minister Benjamin Netanyahu set to visit the White House next week to discuss a deal.

Mr Trump said Israel had agreed to his proposed ceasefire terms, and he urged Hamas to accept the deal as well.

Hamas’ “positive” response to the proposal had slightly different wording on three issues around humanitarian aid, the status of the Israeli Defence Forces inside Gaza and the language around guarantees beyond the 60-day ceasefire, a source with knowledge of the negotiations revealed.

But the source told Sky News: “Things are looking good.”

The mother of Anas Al-Basyouni mourns his loss shortly after he was killed while on his way to an aid distribution center, during his funeral at Shifa Hospital in Gaza City on Thursday, July 3, 2025. (AP Photo/Jehad Alshrafi)
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A woman cries after her son was killed while on his way to an aid distribution centre. Pic: AP/Jehad Alshrafi

Hamas said it is “fully prepared to immediately enter into a round of negotiations regarding the mechanism for implementing this framework” without elaborating on what needed to be worked out in the proposal’s implementation.

The US said during the ceasefire it would “work with all parties to end the war”.

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A Hamas official said on condition of anonymity that the truce could start as early as next week.

An Israeli army tank advances in the Gaza Strip, as seen from southern Israel. Pic: AP/Leo Correa
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An Israeli army tank advances in the Gaza Strip, as seen from southern Israel. Pic: AP/Leo Correa

But he added that talks were needed first to establish how many Palestinian prisoners would be released in return for each freed Israeli hostage and to specify the amount of humanitarian aid that will be allowed to enter Gaza during the ceasefire.

He said negotiations on a permanent ceasefire and the full withdrawal of Israeli troops from Gaza in return for the release of the remaining hostages would start on the first day of the truce.

Hamas has been seeking guarantees that the 60-day ceasefire would lead to a total end to the nearly 21-month-old war, which caused previous rounds of negotiations to fail as Mr Netanyahu has insisted that Israel would continue fighting in Gaza to ensure the destruction of Hamas.

The Hamas official said that Mr Trump has guaranteed that the ceasefire will extend beyond 60 days if necessary to reach a peace deal, but there is no confirmation from the US of such a guarantee.

Speaking to journalists on Air Force One, Mr Trump welcomed Hamas’s “positive spirit” to the proposal, adding that there could be a ceasefire deal by next week.

Palestinians dispersing away from tear gas fired at an aid distribution site in Gaza. Pic: AP
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Palestinians dispersing away from tear gas fired at an aid distribution site in Gaza. Pic: AP

Lian Al-Za'anin, center, is comforted by relatives as she mourns the loss of her father, Rami Al-Za'anin, who was killed while heading to an aid distribution hub, at the morgue of the Shifa Hospital in Gaza City, on Thursday, July 3, 2025. (AP Photo/Jehad Alshrafi)
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A girl mourns the loss of her father, who was killed while heading to an aid distribution hub. Pic: AP/Jehad Alshrafi

Hamas also said it wants more aid to flow through the United Nations and other humanitarian agencies, which comes as the UN human rights officer said it recorded 613 Palestinians killed in Gaza within a month while trying to obtain aid.

Most of them were said to have been killed while trying to reach food distribution points by the controversial US- and Israeli-backed Gaza Humanitarian Foundation (GHF).

The spokeswoman for the UN human rights office, Ravina Shamdasani, said the agency was not able to attribute responsibility for the killings, but added that “it is clear that the Israeli military has shelled and shot at Palestinians trying to reach the distribution points” operated by GHF.

Read more:
The man in the room acting as backchannel for Hamas in negotiations with US
GHF reacts to claims US contractors fired at Palestinians
Deaths in Gaza rise significantly when GHF distributes aid

Palestinians carry aid packages near the GHF distribution centre in Khan Younis. Pic: AP/Abdel Kareem Hana
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Palestinians carry aid packages near the GHF distribution centre in Khan Younis. Pic: AP/Abdel Kareem Hana

Ms Shamdasani said that of the total tallied, 509 killings were “GHF-related”, meaning at or near its distribution sites.

The GHF accused the UN of taking its casualty figures “directly from the Hamas-controlled Gaza health ministry” and of trying “to falsely smear our effort”, which echoed statements to Sky News by the executive director of GHF, Johnnie Moore.

Mr Moore called the UN figures a “disinformation campaign” that is “meant to shut down our efforts” in the Gaza Strip.

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