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.
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.
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“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.
Image: 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.
Image: 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.
Donald Trump has said American troops will not be sent to Ukraine, but the US may provide air support as part of a peace deal with Russia.
A day after his extraordinary White House meeting with Ukrainian President Volodymyr Zelenskyy and the leaders of Kyiv’s European allies, the US president told Fox News “when it comes to security, [Europeans] are willing to put people on the ground. We’re willing to help them with things, especially, probably, by air”.
Mr Trump did not elaborate, but White House press secretary Karoline Leavitt told reporters US air support was “an option and a possibility”.
She said the US president “has definitively stated US boots will not be on the ground in Ukraine, but we can certainly help in the coordination and perhaps provide other means of security guarantees to our European allies”.
Air support could take many forms, including missile defence systems or fighter jets enforcing a no-fly zone – and it’s not clear what role the US would play under any proposed peace deal.
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4:14
What security guarantees could work?
Zelenskyy-Putin summit
It comes as planning for a possible Zelenskyy-Putin summit get under way. Talks between the Ukrainian and Russian president are seen by Mr Trump as vital to ending the war.
Sky News understands a meeting could happen before the end of the month, with Geneva, Vienna, Rome, Budapest, and Doha among the venues being considered.
Geneva, Switzerland, is considered the best option, with Rome or the Vatican disliked by the Russians and Budapest, Hungary, not favoured by the Ukrainians.
European allies are understood to want security guarantees to be defined before the meeting.
A NATO-like treaty, guaranteeing Ukraine’s allies would come to its defence in case of any future Russian attack, is being worked on and could be completed by next week.
Like the US, Sky News understands Italy is opposed to putting boots on the ground in Ukraine.
But EU diplomats are confident this is the best chance yet to stop the war, and allies could return to Washington in early September to celebrate any deal being struck.
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5:57
Sky’s Mark Stone takes you inside Zelenskyy-Trump 2.0
Trump still has doubts about Putin
Despite the renewed optimism about a peace deal following Monday’s White House summit, Mr Trump has admitted Vladimir Putin might not be sincere about wanting to end the war.
“We’re going to find out about President Putin in the next couple of weeks,” he told Fox News.
He’s previously threatened to put more sanctions on Russia if a peace deal isn’t reached, though previously set deadlines have been and gone.
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Russia launched its biggest air assault on Ukraine in more than a month on Monday night, sending 270 drones and 10 missiles, the Ukrainian air force said.
Ukraine’s European allies in the so-called Coalition of the Willing, an initiative spearheaded by Sir Keir Starmer and Emmanuel Macron, discussed additional sanctions to place on Russia on Tuesday.
Image: Boris Yeltsin (2L) and Bill Clinton (C) sign the 1994 Budapest Memorandum
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4:14
What security guarantees could work?
The Trump administration’s contradictory statements on possible security guarantees are causing concern here.
MP Lesia Vasylenko told Sky News it is not at all clear what the allies have in mind.
“Who is going to be there backing Ukraine in case Russia decides to revisit their imperialistic plans and strategies and in case they want to restart this war of aggression?”
For many Ukrainians, there is a troubling sense of deja vu.
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0:46
Ukrainian drone strikes Russian fuel train
In the 1994 Budapest Memorandum, Ukraine agreed to give up not land but its nuclear arsenal, inherited from the Soviet Union, in return for security assurances from Russia and other powers.
They know how that ended up to their enormous cost. Putin reneged on Russia’s side of the bargain, with his invasion of Crimea in 2014 and once again with his full-scale attack three and a half years ago.
We met veteran Ukrainian diplomat Yuri Kostenko, who helped lead those negotiations in the 90s.
Image: Veteran Ukrainian diplomat Yuri Kostenko helped lead the Budapest Memorandum negotiations
He said there is a danger the world makes the same mistake and trusts Vladimir Putin when he says he wants to stop the killing, something Mr Trump said he now believes.
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“It’s not true, it’s not true, Russia never, never, it’s my practices in more than 30 years, Russia never stop their aggression plans to occupy all Ukraine and I think that Mr Trump, if he really believes Mr Putin, it will be a very big mistake, Mr Trump, a very big mistake.”
Before the Alaska summit, allies agreed the best path to peace was forcing Mr Putin to stop his invasion, hitting him where it hurts with severe sanctions on his oil trade.
But Mr Trump has given up calls for a ceasefire and withdrawn threats to impose those tougher sanctions.
Instead, he has led allies down a different and more uncertain path.
Ukrainians we met on the streets of Kyiv said they would love to believe in progress more than anything, but are not encouraged by what they are hearing.
While the diplomacy moves on in an unclear direction, events on the ground and in the skies above Ukraine are depressingly predictable.
Russia is continuing hundreds of drone attacks every night, and its forces are advancing on the front.
If Vladimir Putin really wants this war to end, he’s showing no sign of it, while Ukrainians fear Donald Trump is taking allies down a blind alley of fruitless diplomacy.
Image: Vladimir Putin shaking hands with Donald Trump when they met last week. Pic: Reuters
It was a stunning illustration of Mr Trump’s about-face in his approach to peace. For the past six months, a ceasefire has been his priority, but after meeting Mr Putin in Alaska, suddenly it’s not.
Confirmation that he now views the war through Moscow’s eyes.
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2:10
Trump applauds Putin and shares ride in ‘The Beast’ last week
The second was the format itself, with Mr Trump reverting to his favoured ask-what-you-like open-ended Q&A.
In Alaska, Mr Putin wasn’t made to take any questions – most likely, because he didn’t want to. But here, Mr Zelenskyy didn’t have a choice. He was subjected to a barrage of them to see if he’d learnt his lesson from last time.
It was a further demonstration of the special status Mr Trump seems to afford to Mr Putin.
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The third was their phone call. Initially, President Trump said he’d speak to the Kremlin leader after his meeting with European leaders. But it turned out to be during it.
A face-to-face meeting with seven leaders was interrupted for a phone call with one – as if Mr Trump had to check first with Mr Putin, before continuing his discussions.
We still don’t know the full details of the peace proposal that’s being drawn up, but all this strongly suggests that it’s one sketched out by Russia. The White House is providing the paper, but the Kremlin is holding the pen.
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1:25
Trump, Zelenskyy and the suit: What happened?
For Moscow, the aim now is to keep Mr Trump on their path to peace, which is settlement first, ceasefire later.
It believes that’s the best way of securing its goals, because it has more leverage so long as the fighting continues.
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But Mr Putin will be wary that Mr Trump is pliable and can easily change his mind, depending on the last person he spoke to.
So to ensure that his sympathies aren’t swayed, and its red lines remain intact, Russia will be straining to keep its voice heard.
On Monday, for example, the Russian foreign ministry was quick to condemn recent comments from the UK government that it would be ready to send troops to help enforce any ceasefire.
It described the idea as “provocative” and “predatory”.
Moscow is trying to drown out European concerns by portraying itself as the party that wants peace the most, and Kyiv (and Europe) as the obstacle.
But while Mr Zelenskyy has agreed to a trilateral meeting, the Kremlin has not. After the phone call between Mr Putin and Mr Trump, it said the leaders discussed “raising the level of representatives” in the talks between Russia and Ukraine. No confirmation to what level.