Figures show less than 20% of upgrade projects completed in England

Less than a fifth of the projects approved by Michael Gove to improve England’s towns and cities have been completed, the government admitted, in the latest sign of problems facing his levelling-up agenda.

A response to a freedom of information request from Gove’s department revealed that less than 20% of projects approved under the £3.6bn towns fund are expected to be completed by the end of February. Data shows that even if the next election is held in November, less than half of the task will be completed by the time of the next election.

The figures are the latest example of the Conservatives struggling to deliver on the party’s promise at the last election to use post-Brexit freedoms to reduce regional inequality in England.

The Guardian revealed last year that councils have had to scale back or freeze upgrade projects due to soaring costs, while Gove’s department is returning nearly £2bn of housing funding after struggling to find available projects.

Jack Shaw, a local government expert who revealed the figures, said: “Given this was a flagship policy priority of the last election, expectations are high for the government to build new infrastructure in historically neglected places.

“Inflation and interest rates have hindered progress on some projects, but the government has also failed to respond to these changes, instead asking localities to scale back their ambitions. In the run-up to the election, current evidence suggests the government will fail to deliver on its ‘level up’ for communities level of commitment.”

The town fund was announced immediately after the last election, which included Gove has hope It will provide “under-invested towns with much-needed funding and support to implement their long-term plans”.

The fund is a key part of his plans to upgrade infrastructure in London and outside major cities. Projects include New investment areas around Blackpool Airport, the industrial center of Grimsby and the regeneration of Bedford Railway Station.

Since then, however, high inflation has eaten into much of Gove’s budget and made it increasingly difficult to complete building projects. The Guardian reported last year that at least £500m had been lost on upgrade projects due to rising costs, with leisure buildings, high streets, museums and public spaces all affected.

Many councils have shelved or reduced plans due to rising costs, with some saying they found it a lengthy and bureaucratic process to get Whitehall officials to approve changes to the original plans.

a report Thurrock Council In November, authorities struggled under the pressure of rising inflation.

The council plans to spend £22.8 million improving Tilbury town centre, including a new community centre, a youth centre, new cycle lanes and a new pier. In November, local officials warned of “significant price increases” since the plans were submitted, forcing them to review the entire scheme to ensure the council did not overspend.

The report added: “There has been a significant delay in the confirmation of the business case as further assurance and assessment work on governance is required. [the levelling up department] and committee members. “

Figures released by Shaw show that of 973 Town Fund projects, only 154 are expected to be completed by the end of February. By the end of November, that number had risen to 385, just 40% of the total.

More than 170 projects are due to be completed by March 2026, Gove’s official deadline for all town funds to be spent. Some of the projects are scheduled to be completed after that date, but officials said that may be because they rely on other funding sources to complete them.

The Ministry of Housing and Community Leveling said: “All funds allocated from the Towns Fund are on track to be spent by March 2026, with more than 100 projects already completed. The pace of completion of projects is fully consistent with the delivery timetable we set .”

Labor said the questions were further evidence of ministers in Westminster trying to decide how local authorities spend their money across the country.

Shadow upgrade minister Justin Madders said: “The Conservatives have adopted a begging bowl approach to upgrade, forcing leaders to spend time, energy and taxpayers’ money fighting for uncertain and tightly constrained funding. This A plaster-on-a-stick approach fails to provide local leaders with the tools they need to drive local economic growth and reach their highest potential.”