Levelling Up Round 3 allocations announced

The Department for Levelling Up, Housing and Communities recently published the list of successful projects that will receive funding as part of Round 3 of the Levelling Up Fund (LUF). 
 
The LUF is a key part of delivering the government’s levelling up agenda and is focused on investing £4.8 billion in local infrastructure projects. It aims to increase pride in place and bring people closer to opportunities which exist. 
 
The first 2 rounds of the Fund saw £3.8 billion awarded on a competitive basis to projects focused on one of three themes: regeneration and town centres; local transport; and cultural and heritage assets. Round 3 has moved away from the competitive approach of the first two rounds, with funding instead awarded to high-quality bids that were submitted in Round 2. The Government has said the change in approach was based on feedback from local authorities, and the principles set out in the Funding Simplification Plan which was published earlier this year. 

Using our mapping and analysis capabilities at GC Insight, we have mapped the projects which have been selected to receive funding. 

The Levelling Up Fund has used an index to measure places’ need for investment within the scope of the Fund’s priorities. Each local authority is prioritised on this basis, and the map  shows the approximate locations of the projects selected in Round 3, colour-coded by the local authority’s priority level. 

Funding Allocation

In Round 3, £756m was allocated to Priority 1 areas, with £165m to Priority 2 areas and £52m to Priority 3 areas. 

Yorkshire and the Humber were allocated the highest amount of funding in Round 3, totaling £168m. The North West was allocated £127m, Scotland was allocated £121m, and London was allocated the least at £30m.

Kirklees, a priority 1 area, has been allocated the most money through the fund, with £64m awarded over two projects in Round 3, and £76m allocated across all the rounds. Birmingham has been awarded the second highest sum across the three rounds, totaling £72m. 
 
Meanwhile, Dudley, North Ayrshire, Dumfries and Galloway and Neath Port Talbot were all awarded over £20m in Round 3 of the Fund. 
 
Notably, no funding was awarded to Northern Ireland in Round 3. The UK Government indicated that this was due to the absence of a working Executive and Assembly. Northern Ireland was awarded £120m in the first two rounds of the Fund. 
 
The change in approach in allocations for Round 3 has come as a surprise to many, and some MPs have questioned the decision due to the time and money spent by local authorities in preparing bids for the fund.  
 
The funding awards are currently provisional and subject to validation and checks. While for many local authorities the allocation of funding will be welcome news, there will now be some questions over the feasibility and scope of some projects, due to changes in inflation, affordability and local context since plans were first drawn up for Round 2 bids. 
 
Analysis by Nathan Shoesmith, nathan.shoesmith@ekosgen.co.uk
Research Consultant, GC Insight

Members of our team have been successful in supporting Levelling Up projects, including those in Round 3.  To find out how GC Insight can support Levelling Up projects, please do not hesitate to contact a member of the team: 
Lauren Newby, lauren.newby@ekosgen.co.uk 
Margaret Collins, margaret.collins@ekosgen.co.uk 
Pamela Reid, pamela.reid@ekosgen.co.uk