The Department for Levelling Up is having to ask the Treasury to sign off on big projects, a minister has confirmed.
The Financial Times had reported the Treasury had banned capital spending by Michael Gove’s department amid doubts regarding its ability to deliver its flagship policy to reduce regional economic divides.
The agenda was a key part of the Conservative Party’s election-winning manifesto in 2019.
Capital spending is the money used to buy, upgrade or maintain physical things like buildings and equipment.
Answering a question on the matter in the Commons, Levelling Up minister Lee Rowley emphasised the change would not have an impact on the department’s agenda or ambitions.
‘No change’ to budget or objectives, minister insists
“It is absolutely the case that processes change and they also may apply at times in different ways,” Mr Rowley told MPs.
“We are working within a new delegation approach with Treasury which involves sign off with Treasury on capital spend.
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“We will always work closely with Treasury, we value their value-for-money focus, they value our mission and they share our mission to level up the country as a whole, and we will continue to do that.”
He added: “There has been no change to the Department for Levelling Up, Housing and Communities budget whether capital or revenue, no change to our policy objective, no dilution of our ambition and there are no implications for the government’s policy agenda.”
‘Absurd’ if Gove can’t ‘sign off on a park bench’
Shadow levelling up secretary Lisa Nandy said “rogue” spending commitments made by Mr Gove to sort out poor social housing conditions may have led to the decision by the Treasury.
Referring to the Financial Times report, she told MPs: “If this report is true, we are in the absurd situation of having a secretary of state for levelling up who doesn’t even have the authority to sign off on a park bench.”
The report said Treasury chief secretary, John Glen, has stepped in to prevent the department from signing off spending on any new capital projects because of concerns about whether the department is delivering value for money.
Ms Nandy asked Mr Rowley: “Is it true that this decision by the Treasury was prompted by unauthorised spending commitments made by the secretary of state at the Convention for the North to spend money on improving appalling housing standards after the desperate death of a two-year-old boy in Rochdale?”
“I understand the secretary of state is in Rochdale today. How can he possibly tell housing associations to sort themselves out if he can’t sort out his own department?”
She added: “We deserve to know whether the chancellor of the exchequer believes that a secretary of state who is finally, belatedly, spending money on housing standards is a secretary of state who has gone rogue because that would be a very serious thing indeed.”
Responding to the Financial Times report, a Treasury spokesperson denied Mr Gove’s speech at the Convention for the North prompted the spending ban.
A government spokesperson said: “The government’s central mission is to level up every part of the United Kingdom by spreading opportunity, empowering local leaders and improving public services.
“DLUHC will continue to deliver its existing programme of capital projects as planned.”
NATO is to bolster Europe’s eastern flank, including the use of UK military resources, after Russia’s “reckless and unacceptable” violation of Polish airspace.
NATO Secretary-General Mark Rutte announced operation ‘Eastern Sentry’ on Friday, involving the deployment of equipment on the border with Belarus, Russia and Ukraine to deter potential Russian aggression.
Poland shot down Russian drones which flew over the country on Wednesday, something the military alliance has portrayed as an attempt by Moscow to test NATO’s military response.
It underlines long-held concerns about the potential expansion of Russia’s three-year war in Ukraine.
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Michael Clarke: Russia looking to frighten NATO
Russia said its drones went astray because they were jammed, but European leaders believe the incursions were a deliberate provocation by Russia.
“It’s reckless and unacceptable. We can’t have Russian drones entering allied airspace,” Mr Rutte told a news conference.
Image: Mark Rutte described Russian drones entering Polish airspace as ‘reckless’. Pic: Reuters
He added that allies, including the UK, France, Germany and Denmark, have so far committed to the mission with others set to join.
In a statement, the UK’s Ministry of Defence said: “The UK is fully committed to playing our part in NATO’s Eastern Sentry following the reckless and dangerous airspace violations by Russia”. It added that the details of the UK’s contribution would be announced soon.
Ms Cooper described her trip, which included a meeting with the country’s president, Volodymyr Zelenskyy, as a demonstration of solidarity with Ukraine.
“The UK will not stand idly by as Putin continues his barbaric invasion of Ukraine,” Ms Cooper said, noting what she said was the Russian president’s “complete disregard for sovereignty” by sending drones into NATO airspace.
Image: Yvette Cooper met Volodymyr Zelenskyy in Kyiv on Friday. Pic: Valentyn Ogirenko/Reuters
Image: Pic: Valentyn Ogirenko/Reuters
Prince Harry also made a surprise visit to Kyiv on Friday, where he met with wounded service members.
NATO already has substantial forces in eastern Europe, including thousands of troops, but the alliance did not explain how many additional forces would be involved in the new operation.
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Prince Harry’s surprise visit to Ukraine
Speaking at the alliance’s Brussels headquarters, US General Alexus Grynkewich told reporters the additional resources will enable the alliance to “plug gaps in the line” and concentrate forces wherever they’re needed while improving communications across NATO’s entire eastern flank.
NATO detailed a modest number of additional military assets – including two F-16 fighter jets and a frigate from Denmark, three Rafale fighter jets from France and four Eurofighter jets from Germany.
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Meanwhile, new measures were announced by the UK against Russia on Friday.
They included bans on 70 vessels the UK says are part of Russia’s “shadow fleet” that transports Russian oil in defiance of sanctions.
Some 30 individuals and companies – including Chinese and Turkey-based firms – were also sanctioned for their part in supplying Russia with electronics, chemicals, explosives and other weapons components.
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Thousands of troops are taking part in a joint military exercise between Russia and Belarus, as tensions with the EU run high following a Russian drone incursion into Polish airspace earlier this week.
The Zapad joint military exercise which began on Friday will involve drills in both Russia and Belarus as well as in the Baltic and Barents seas, the Russian defence ministry said.
Belarusian defence officials initially said about 13,000 troops would participate in the drill, but in May, its defence ministry said that would be cut nearly in half.
It comes just two days after Poland, with support from its NATO allies, shot down Russian drones over its airspace.
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Poland’s Prime Minister Donald Tusk on Friday morning hit back at a suggestion by US President Donald Trumpon Thursday that the incursion may have been a “mistake”.
He said in a post on X: “We would also wish that the drone attack on Poland was a mistake. But it wasn’t. And we know it.”
Russia said its forces had been attacking Ukraine at the time of the incursions and that it had not intended to hit any targets in Poland.
Friday also saw Foreign Secretary Yvette Cooper travelling to Ukraine’s capital of Kyiv on the same day the UK announced fresh sanctions against Moscow.
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Prince Harry was also in Kyivfor a surprise visitto help with the recovery of military personnel seriously injured in the three-year war with Russia.
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Prince Harry arrives in Kyiv
Ms Cooper, who was appointed foreign secretary last week, posted about her visit on X saying: “The UK’s support for Ukraine is steadfast. I am pleased to be in Kyiv on my first visit as Foreign Secretary.”
The UK’s new sanctions include bans on 70 vessels that Britain says are part of Russia’s “shadow fleet” that transports Russian oil in defiance of sanctions already in place.
Image: Yvette Cooper with Volodymyr Zelenskyy in Kyiv. Pic: Valentyn Ogirenko/PA
Some 30 individuals and companies – including Chinese and Turkey-based firms – have also been sanctioned for their part in supplying Russia with electronics, chemicals, explosives and other weapons components.
Her visit coincides with the UK launching a new package of Russia-related sanctions targeting ships carrying Russian oil as well as companies and individuals supplying electronics, chemicals and explosives used to make Russian weapons.
It comes as Russia and Belarus began a major joint military exercise on on NATO’s doorstep on Friday, just two days after Poland, with support from its NATO allies, shot down suspected Russian drones over its airspace.
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Drones shot down in Poland
The Zapad-2025 exercise – a show of force by Russia and its close ally – will involve drills in both countries and in the Baltic and Barents seas, the Russian defence ministry said.
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Meanwhile on the frontline, Russian defence systems intercepted and destroyed 221 Ukrainian drones overnight, including nine over the Moscow region, the ministry said on Friday.
The duke told the Guardian while on an overnight train to Kyiv: “We cannot stop the war but what we can do is do everything we can to help the recovery process.
“We can continue to humanise the people involved in this war and what they are going through.
“We have to keep it in the forefront of people’s minds. I hope this trip will help to bring it home to people because it’s easy to become desensitised to what has been going on.”
Harry, who served two tours in Afghanistan, previously travelled to Ukraine in April, when he visited war victims as part of his work with wounded veterans.
The prince visited the Superhumans Center, an orthopaedic clinic in Lviv that treats and rehabilitates wounded military personnel and civilians.
Earlier this week, Harry said the King is “great” after he reunited with him at Clarence House for a private tea.
It was their first meeting in 19 months and lasted just 54 minutes.