Local people to ‘control where Whitehall cash goes’ under neighbourhoods plans

Local people will have “control of where the Whitehall cash goes” under funding plans for deprived neighbourhoods, ministers have announced.

Officials have set aside £1.5 billion to be shared around 75 areas across the UK, which can be used for projects such as youth clubs and cultural venues, as well as community services such as health and education.

The scheme follows on from the long-term plan for towns under Rishi Sunak’s government, which had similarly pledged funding for the same areas across Britain and Northern Ireland.

Under the “plan for neighbourhoods”, the selected areas will all be handed up to £20 million each and will have a local board set up – comprised of residents, businesses and campaigners – who will get to decide how money is used, according to the Ministry of Housing, Communities and Local Government.

The boards will be presented with options of where the cash can be spent, such as repairs to pavements or neighbourhood watch schemes.

Among the areas selected to receive funding are Coleraine in Northern Ireland, Kilmarnock in Scotland and Wrexham in Wales.

Across the English regions, among the included towns are Darlington, Scarborough and Great Yarmouth.

Angela Rayner, Deputy Prime Minister and the secretary of state responsible for local government said: “For years, too many neighbourhoods have been starved of investment, despite their potential to thrive and grow. Communities across the UK have so much to offer – rich cultural capital, unique heritage but most of all, an understanding of their own neighbourhood.

“We will do things differently, our fully funded Plan for Neighbourhoods puts local people in the driving seat of their potential, having control of where the Whitehall cash goes – what issues they want to tackle, where they want to regenerate and what growth they want turbocharge.”

Local growth minister Alex Norris said that “when our local neighbourhoods thrive, the rest of the country thrives too. That’s why we are empowering communities to take control of their futures and create the regeneration and growth they want to see”.

Money will be made available from April 2025, with projects expected to be able to get up and running in 2026.

The Conservatives criticised the funding plans as “wasteful pet projects”.

“Local areas are feeling increased pressure due to immigration, increased council tax and Labour changing the local government finance settlement to benefit urban areas over rural areas,” Shadow housing secretary Kevin Hollinrake said.

“Labour erased the phrase ‘levelling up’ from government and instead of delivering for local communities are now spending taxpayer cash on wasteful pet projects this country can’t afford.”

Several MPs welcomed the funding plans announced by the Government.

Labour MP Florence Eshalomi, who chairs the Housing, Communities and Local Government Committee, told the Commons: “The competitive tendering process did, unfortunately, pit some councils against each other, including depriving councils, so I think it’s right that we move away from that and the sticking plaster politics we’ve seen over the last few years.”

Liberal Democrat housing and planning spokesman Gideon Amos said his party welcomed the move away from the previous “divisive” bidding system and “towards a more objective approach”.

Mr Norris, responding to questions, said the Government has “honoured” the commitment to 75 areas before noting: “There may be scope to go further in the future, I can’t run ahead of the spending review.

“But we know if we can prove that things have worked in these 75 towns then there’ll be a very strong case to do them elsewhere.”