Labour's promise to 'power up' the levelling fund

The Levelling Up Fund was first introduced by the UK Conservative government in 2019 in an attempt to reduce regional inequalities in the UK under the slogan "no community is left behind". The £4.8 billion Fund was earmarked for investment in infrastructure and the regeneration of town centres, housing and local transport to reduce long-standing regional inequalities. In reality, the centralised distribution of funding, complex bidding procedures, lack of flexibility and subsequent delays have meant this Fund has not been fully utilised and few completed projects have materialised.

Labour's new plan to 'Power Up' Britain

The new UK Labour government is promising an expansion of the Levelling Up Fund under their 'Power Up Britain' manifesto. This expansion will have an emphasis on decentralising decision making to regional players who understand the needs of their communities, together with a greater focus on social infrastructure. This will coincide with what is described as "turbocharging" mayors and councils with new powers to make decisions with support from Westminster, and encouraging regional collaborations to ensure the funding is best allocated. It is hoped that these changes, and removing the previous bidding process for funding, will reduce the timescales for obtaining approval and increase investment in genuinely underserved communities.

With its promise to deliver "the biggest boost of social and affordable housebuilding in a generation" with the construction of 1.5 million new homes and its commitment to improve the planning system at a local level, there is no doubting the new government's stated ambition to "get Britain building".

Outlook for the real estate sector

If these promises can be delivered upon, developers and landowners can look forward to benefitting from quicker planning processes and increased government funding for projects that enhance social infrastructure and provide affordable housing. However, those requiring funding for non-social infrastructure may find increased competition, due to the new government's shift in focus.