NORTH East communities have missed out on millions of pounds despite benefiting from government funding as part of the government's levelling up agenda.
New analysis has found areas which were allocated money under the Government Towns Fund, Levelling Up Fund or Community Renewal Fund are still millions of pounds worse off since 2010.
Local authorities across the north have had their budgets cut by an estimated £15 billion overall since 2010 and received less in funding on average since 2018 than they received from regional development funds.
A total of 144 local authority areas were still worse off by £50 million on average, even after receiving levelling up funding, the Labour analysis found.
Stockton-on-Tees was the only local authority area in the North East which benefited from a gain in funding, receiving £4.6m more. Plans for the regeneration of Thornaby town centre were boosted by £23.9m of Government money while Yarm and Eaglescliffe received £20m in the Levelling Up Fund.
Read more: Billingham locals say town is suffering due to lack of funding
Stockton North MP Alex Cunningham praised the work of the local council but criticised the Government for ignoring Billingham's two funding bids.
“The Tories talk a good game about 'levelling up' but their refusal to fund bids for Billingham while giving tens of millions of pounds to more affluent areas is proof that it is nothing more than an empty slogan," he said.
"For too long local councils have had budgets slashed and been told to compete for the same pots of recycled money.
"We’re lucky Stockton-on-Tees’ Labour-led Council is stepping in when the Government fails, but it’s clear that we need a better deal for councils that ensures local communities like those in Stockton North get the resources and investment they need.”
However, the funding outcomes were bleaker across the rest of the region. The County Durham local authority area recorded a £64.5m loss despite benefiting from £54m in Government funding.
A £33.2m bid to turn Bishop Auckland town centre into a world-class visitor destination of national importance was approved, while £20m was also approved for improving Whorlton Bridge, re-routing the A68 to bypass Toft Hill and enhancing the Locomotion heritage attraction at Shildon. It also received a further £800,000 from the Community Renewal Fund.
North Yorkshire has lost out on £54.6m, according to the analysis, even though it received £38.1m in funding.
In Middlesbrough, the town's authority has lost out on £16.8m. It received £21.9m from the Towns Fund to improve the local area but £0 from neither of the other funds.
Redcar and Cleveland has lost out on £8.9m since 2018 despite earning £25m from the Towns Fund to transform its town centre.
Read more: Redcar and Cleveland 'benefiting' from levelling up funding
Hartlepool and Darlington also reported a loss in funding, but not as significant as other areas in the region.
Darlington received £22.3m to regenerate its town centre from the Towns Fund but £0 from the other two available funds, meaning it lost out on £400,000.
Hartlepool received £500,000 less funding despite its £25m Towns Fund boost.
Read more: Hartlepool waiting for levelling up cash from Boris Johnson
Levelling Up Secretary Michael Gove has promised that the new plans, to be announced in detail on Wednesday, will “breathe fresh life into disadvantaged communities” across England, including parts of the North East.
However opposition politicians pointed out that cash being pledged was not new money as it had already been announced.
Lisa Nandy, Labour’s shadow levelling up secretary, accused the Government of short-changing the North.
She said: “For all the talk of levelling up, we have been completely shortchanged. The prime minister has handed us a fiver, but nicked a tenner.
“This must end now. It simply will not be good enough to give us more of the same –pots of our money to scrap over – without real power on what it’s spent on or a few new mayors.
Levelling Up Secretary Michael Gove said: “We are on a mission to regenerate the nation, transforming derelict areas in our towns and cities into thriving places people are proud to live and work in.
“This huge investment in infrastructure and regeneration will spread opportunity more evenly and help to reverse the geographical inequalities which still exist in the UK.”
Henri Murison, director of the Northern Powerhouse Partnership, said: “The good news is that, after a few years in the wilderness, it looks like devolution is back on the agenda.
“There’s a lot to like: Innovation Accelerators will play a crucial role in breathing new life into manufacturing here in the north of England, while growing our existing strengths in health innovation.
“The bad news is that much of its impact will be undermined through a lack of funding. We remain concerned that the north could be at risk of losing up to £300 million a year in regional economic development funding post-Brexit, with areas such as the Tees Valley bearing the brunt of the cuts.
“Worryingly, we seem to be moving backwards on education, with places such as Bradford, Blackpool, Oldham and Doncaster all at risk of losing out on funding if the budget for Opportunity Areas is not protected. Only a localised approach to education, such as ‘smart’ opportunity areas, can solve the multifaceted deep-seated issues that contribute to the education disadvantage gap.”
Lord Jim O’Neill, vice-chair of the Northern Powerhouse Partnership, said: “We won’t close the education disadvantage gap without simultaneously addressing place-based challenges such as health and housing.
"Education is just one part of the puzzle - ’smart’ opportunity areas led by metro mayors could tackle local issues in tandem, with far more effective results.
“The original premise of the Opportunity Area programme set out by Justine Greening back in 2016 was based on bespoke, local solutions - we’re at risk of doing the total opposite.”
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