Proposals have been drawn up to spend millions in deprived neighbourhoods which are most at risk of failing to meet the government’s missions, Sky News understands.

Approving the money will ultimately be a decision for the Treasury in the upcoming spending review, but it has wide support among backbench MPs who have urged the government to do for towns “what Blair and Brown did for cities” and regenerate them.

Plans unveiled to ease prisons crisis – politics latest

Labour MPs told Sky News austerity is the main driver of voters turning to Reform UK and investment is “absolutely critical”.

The plan is based on the findings of the Independent Commission on Neighbourhoods (ICON), which identified 613 “mission-critical” areas that most need progress on Sir Keir Starmer’s “five missions”: the economy, crime, the NHS, clean energy and education.

The list of neighbourhoods has not been published but are largely concentrated around northern cities such as Manchester, Liverpool, Sunderland and Newcastle, a report said.

Some of the most acute need is in coastal towns such as Blackpool, Clacton, and Great Yarmouth, while pockets of high deprivation have been identified in the Midlands and the south.

Clacton is the seat of Reform UK leader Nigel Farage, who is hoping to be Sir Keir’s main challenger at the next general election following a meteoric rise in the polls.

‘Residents deserve better’

However, Labour MP for Blackpool South Chris Webb said this wasn’t about Reform – but investing in places that have been forgotten.

He told Sky News: “Coastal towns like my hometown of Blackpool have been overlooked by successive governments for too long, and it’s time to change that narrative.

“The findings of the ICON report are a wake-up call, highlighting the urgent need for investment in our communities to address the alarming levels of crime, antisocial behaviour, poverty, and the stark disparities in life expectancy.”

He said he’d be lobbying for at least £1m in funding. His residents are “understandably frustrated and angry” and “deserve better”.

‘Investment essential to beat Reform’

The spending review, which sets all departments’ budgets for future years, will happen on 11 June. It will be Rachel Reeves’ first as chancellor and the first by a Labour government in over a decade.

Southport MP Patrick Hurley told Sky News the last Labour government “massively invested in our big cities” after the dereliction of the 1980s, “but what Blair and Brown did for our cities, it’s now on the new government to do for our towns”.

He added: “Investment in our places to restore pride, and improve the look and feel of where people live, is essential.”

Another Labour backbencher in support of the report, Jake Richards, said seats like his Rother Valley constituency had been “battered by deindustrialisation and austerity”.

“Governments of different colours have not done enough, and now social and economic decay is driving voters to Farage,” he said.

“We need a major investment programme in deprived neighbourhoods to get tough on the causes of Reform.”

Read more:
Starmer defends ‘tiny tariff’ deal
PM rejects Enoch Powell comparison

ICON is chaired by former Labour minister Baroness Armstrong of Hill Top.

The report said focusing on neighbourhoods is the most efficient route to mission delivery and is likely to have more support among voters “than grandiose national visions of transformation” – pointing to the Tories’ “failed levelling up agenda”.

The last major neighbourhood policy initiative was New Labour’s “New Deal for Communities”, which funded the regeneration of 39 of England’s poorest areas.

Research suggests it narrowed inequalities on its targeted outcomes and had a cost-ratio benefit. It was scrapped by the coalition government.

Deputy Prime Minister and Housing Secretary Angela Rayner has already announced £1.5bn “Plan for Neighbourhoods” to invest in 75 areas over the next decade, with up to £20m available for each.

A government source told Sky News expanding the programme “would be a decision for the upcoming spending review”.