Announced by Rishi Sunak in this year’s budget on the 3rd March. Today we are going to take a closer look at the levelling up fund and what it means for the country. The fund, a shared pot introduced by the government, is overseen by the Department for Transport, the Ministry for Housing, Communities and Local Government and the Treasury. In total, they are providing up to £4.8bn in investment in both local and national local infrastructure. The main purpose of this fund being introduced is so that it removes any barriers between the departments and allows for a great level of synergy and collaboration.
The fund is available to local governments and councils across the UK, however, it is maybe most beneficial to areas that are ex-industrial and coastal towns, that in recent years, have seen a downturn in revenue and tourism. Over the next 4 years, the government has set aside an initial amount of £4b for England with £800m respectively for the devolved nations of Scotland, Wales and Northern Ireland. For the devolved nations, funding available to areas within those countries will be delivered through the respective governments.
It’s anticipated that funding will be provided on a bid application basis and we expect more information to be released by the government later this year on how the fund will operate from next year onwards. However, what we understand so far is that the fund will focus on initial groups of investment for projects that require up to £20m in funding. Despite there being scope for investments on larger projects. Initially, any bids for projects above £20m and below £50m will only be accepted on projects linked to transport. And subsequently, these types of projects will require an extensive amount of planning to be demonstrated before approval.
If you want to know more about the levelling up fund, or if you have any questions about the budget in general and what it means for your business. Why not get in touch with our team over here at D&K Accounting. We are a qualified firm of Profit First professionals with years of experience helping businesses of all sizes across the UK take control of their finances and grow as a result of this.