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.”
A famine has been declared in Gaza City and the surrounding neighbourhoods.
The Integrated Food Security Phase Classification (IPC) – a globally recognised system for classifying the severity of food insecurity and malnutrition – has confirmed just four famines since it was established in 2004.
These were in Somalia in 2011, and in Sudan in 2017, 2020, and 2024.
The confirmation of famine in Gaza City is the IPC’s first outside of Africa.
“After 22 months of relentless conflict, over half a million people in the Gaza Strip are facing catastrophic conditions characterised by starvation, destitution and death,” the report said, adding that more than a million other people face a severe level of food insecurity.
Image: Israel Gaza map
Over the next month conditions are also expected to worsen, with the famine projected to expand to Deir al-Balah and Khan Younis, the report said.
Nearly a third of the population (641,000 people) are expected to face catastrophic conditions while acute malnutrition is projected to continue getting worse rapidly.
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What is famine?
The IPC defines famine as a situation in which at least one in five households has an extreme lack of food and face starvation and destitution, resulting in extremely critical levels of acute malnutrition and death.
Famine is when an area has:
• More than 20% of households facing extreme food shortages
• More than 30% of children suffering from acute malnutrition
• A daily mortality rate that exceeds two per 10,000 people, or four per 10,000 children under five
Over the next year, the report said at least 132,000 children will suffer from acute malnutrition – double the organisation’s estimates from May 2024.
Israel says no famine in Gaza
Volker Turk, the UN Human Rights chief, said the famine is the direct result of actions taken by the Israeli government.
“It is a war crime to use starvation as method of warfare, and the resulting deaths may also amount to the war crime of wilful killing,” he said.
COGAT, the Israeli military agency that coordinates aid, has rejected the findings.
Israel accused of allowing famine to fester in Gaza
Tom Fletcher, speaking on behalf of the United Nations, did not mince his words.
Gaza was suffering from famine, the evidence was irrefutable and Israel had not just obstructed aid but had also used hunger as a weapon of war.
His anger seeped through every sentence, just as desperation is laced through the report from the Integrated Food Security Phase Classification (IPC).
Conditions are expected to worsen, it says, even though the Gaza Strip has been classified as a level 5 famine. There is no level 6.
But it took only moments for the Israeli government to respond in terms that were just as strident.
Israel’s foreign ministry said there is no famine in Gaza: “Over 100,000 trucks of aid have entered Gaza since the start of the war, and in recent weeks a massive influx of aid has flooded the Strip with staple foods and caused a sharp decline in food prices, which have plummeted in the markets.”
Another UN chief made a desperate plea to Israel’s prime minister to declare a ceasefire in the wake of the famine announcement.
Tom Fletcher, UN under-secretary general for humanitarian affairs, said famine could have been prevented in the strip if there hadn’t been a “systematic obstruction” of aid deliveries.
“My ask, my plea, my demand to Prime Minister Netanyahu and anyone who can reach him. Enough. Ceasefire. Open the crossings, north and south, all of them,” he said.
The IPC had previously warned famine was imminent in parts of Gaza, but had stopped short of a formal declaration.
Image: Palestinians struggle to get aid at a community kitchen in Gaza City. Pic: AP
The latest report on Gaza from the UN Office for the Coordination of Humanitarian Affairs (OCHA) says there were almost 13,000 new admissions of children for acute malnutrition recorded in July.
The latest numbers from the Gaza health ministry are 251 dead as a result of famine and malnutrition, including 108 children.
But Israel has previously accused Hamas of inflating these figures, saying that most of the children who died had pre-existing health conditions.
The Ukrainian suspected of coordinating attacks on the Nord Stream pipelines had served in Ukraine’s Secret Service and in the Ukrainian Army’s special forces, Sky News understand.
Serhii K., 49, was arrested in northern Italy on Thursday following the issuance of a European arrest warrant by German prosecutors.
It is not known whether he was still serving at the time of the pipeline attack in 2022 and Ukraine’s government has always denied any involvement in the explosions.
According to sources close to the case, the suspect has been found in a three-star bungalow hotel named La Pescaccia in San Clemente, in the province of Rimini.
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Man arrested over Nord Stream attacks
When military officers from Italy’s Carabinieri investigative and operational units raided his bedroom, he didn’t try to resist the arrest.
The hotel’s employees have been questioned, but no further evidence or any weapons were found, the sources added.
Serhii arrived on Italy’s Adriatic coast earlier this week, and the purpose of his trip was a holiday. He was found with his two children and his wife.
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At least one of the four people within his family had a travel ticket issued in Poland. He crossed the Italian border with his car with a Ukrainian license plate last Tuesday.
He was travelling with his passport, and he used his real identity to check into the hotel, triggering an emergency alert on a police server, we have been told.
Image: A satellite image shows gas from the Nord Stream pipeline bubbling up in the Baltic Sea. File pic: Roscosmos via Reuters
After the arrest, he was taken to the Rimini police station before being moved to a prison in Bologna, the regional capital, on Friday.
Deputy Bologna Prosecutor Licia Scagliarini has granted the German judicial authorities’ requests for Serhii’s surrender, but Sky News understands the man told the appeal court that he doesn’t consent to being handed over to Germany.
He also denied the charges and said he was in Ukraine during the Nord Stream sabotage. He added that he is currently in Italy for family reasons.
While leaving the court, he was seen making a typical Ukrainian nationalist ‘trident’ gesture to the reporters.
The next hearing is scheduled for 3 September, when the Bologna appeal court is set to decide whether Serhii will be extradited to Germany or not. He will remain in jail until then.
In Germany, he will face charges of collusion to cause an explosion, anti-constitutional sabotage and the destruction of structures.
German prosecutors believe he was part of a group of people who planted devices on the pipelines near the Danish island of Bornholm in September 2022.
Serhii and his accomplices are believed to have set off from Rostock on Germany’s north-eastern coast in a sailing yacht to carry out the attack.
The explosions severely damaged three pipelines transporting gas from Russia to Europe. It represented a significant escalation in the Ukraine conflict and worsening of the continent’s energy supply crisis.
According to a US intelligence report leaked in 2023, a pro-Ukraine group was behind the attack. Yet, no group has ever claimed responsibility.
Image: Spare pipes for the Nord Stream 2 gas pipeline. File pic: Reuters/Fabian Bimmer
Sky News understands Genoa’s Prosecutor’s Office in northern Italy has requested their colleagues in Bologna to share the information related to Serhii.
Anti-terrorism prosecutors are investigating another alleged sabotage linked to the Russian shadow fleet oil tanker Seajewel, which sank off the port of Savona last February.
On Thursday, they asked an investigative police unit to figure out whether there is a link between that episode and the Nord Stream attacks.