Conservative plans to launch national service for 18-year-olds could deprive some of the North East's poorest areas of cash for community safety and high street regeneration, new research has found.

Areas like Merthyr Tydfil in South Wales, Cornwall and the Tees Valley are among the areas with the most to lose, according to research by the Institute for Fiscal Studies (IFS).

Additionally, research by Labour shows that the conscription announcement will be partly paid for by "a potential raid" of up to £30,830,618 from County Durham.

The plan to close the Government’s flagship UK Shared Prosperity Fund (UKSPF) by 2028 and use £1.5 billion to support military and volunteering opportunities for 18-year-olds could result in wealthier areas across southern England receiving “a substantial increase in net funding”, researchers found.

But Prime Minister Rishi Sunak has said he is “absolutely committed” to levelling up in Cornwall, on a visit to Penzance today (Wednesday, May 29).

The Department for Levelling Up, Housing and Communities previously announced plans to spend £2.6 billion on local authorities between 2022 and 2025, to offer councils a “flexible approach” towards three primary areas: communities and place, supporting local business, and people and skills.

With the UKSPF figure set to reach £1.5 billion per year by March 2025, the Government claimed it could deliver on its “commitment to match EU structural funds for each nation” after Brexit.

The Conservative Party has costed its national service plan at £2.5 billion, with the remaining £1 billion to come from a crackdown on tax avoidance and evasion.

David Phillips, IFS associate director, said: “The Conservatives’ plan to wind up the UKSPF and use the resources instead to help pay for a new national service scheme would represent a major shift in how funding is allocated across the country.

“Rather than being targeted at poorer areas and aimed at levelling up, the funding would be spread across the country based on where 18-year-olds are undertaking their military or community service.

“The scheme may therefore create opportunities for young people across the UK but would mean hundreds of millions less in funding for community and economic development in Wales, Cornwall and the North and Midlands of England.”

Mr Sunak was asked by reporters if regions receiving UKSPF cash would miss out as a result of funding being repurposed for his scheme.

The Prime Minister replied: “I am absolutely committed to levelling up in Cornwall and you can see our track record.”

He pointed to investment in high streets, hospitals and transport infrastructure in Cornwall, and added: “Those are all examples of the investment that is going into levelling up here in Cornwall and that will always continue under a Conservative government led by me.”

Mr Sunak has previously said: “This modern form of national service will mean that young people get the skills and the opportunities that they need which is going to serve them very well in life.”

This comes as North East MPs have voiced their opinions 

Durham Labour MP Mary Kelly Foy reacted with fury at the policy.

“Reintroducing national service – doesn’t that just show the state that the country is in after 14 years of the Tories,” she said.

“How we sort young people out, give them a job, and a decent livelihood is by bringing in national service!? It’s outrageous.

“It’s a gimmick. Rishi is pandering to the far right to be quite honest.

“What we want is youth services, decent education, we want some aspiration and motivation. We have got three generations of unemployment in some of our areas here in Durham when Margaret Thatcher closed the pits. We need decent jobs, decent education and aspirations for our young people so they’ve got a bit hope in life.

“If he thinks that National Service is the answer to dealing with the issues of ASB or youth unemployment, we need a change of government. With Keir Starmer and the many Labour MPs who are progressive, hopeful people we can bring about a great future.”

Darlington MP Peter Gibson fell short of hailing the PM’s new flagship policy and said he welcomed a conversation on the idea.

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He said: “I welcome the conversation we are having as a nation on the idea of National Service.

“Strengthening our collective national purpose and bringing young people together from across society to work together for our security and community could be a good thing.

“I can think of many groups, organisations and challenges in our community that would be transformed with the support such help would bring.”