£197m investment for region’s towns announced

A £197m investment for Yorkshire and Humber  has been announced by the government for towns in the region.

The funding, from the Stronger Towns Fund, will be delivered over seven years from 2019-20. The total £1.6bn  fund is part of the Government’s commitment to providing long term support for places that have not shared in the proceeds of growth in the same way as more prosperous parts of the country.

It will be used to create new jobs, help train local people and boost growth, said the government.

Across England, a total of £1bn will be allocated at Local Enterprise Partnership area level using a needs-based formula, with over half of this share – £583m –  going to the Northern Powerhouse.

Another £600m will be available through a competitive process. The government said the fund will help unlock the potential of Yorkshire and the Humber towns by investing in their building blocks of productivity and success.

Prime Minister Theresa May MP said: “For too long in our country prosperity has been unfairly spread.  Our economy has worked well for some places but we want it to work for all communities.

“Communities across the country voted for Brexit as an expression of their desire to see change – that must be a change for the better, with more opportunity and greater control.

“These towns have a glorious heritage, huge potential and, with the right help, a bright future ahead of them.”

Chris Hearld, North Region Chairman at KPMG UK said: “Today’s Stronger Towns Fund announcement is positive but, as always the challenge will be in the delivery.

“The left behind towns which Brexit has acutely highlighted haven’t just skipped a recent funding round – their problems are more deep rooted.   They have often suffered from structural weaknesses in education, connectivity and infrastructure.  If this fund is going to make a difference it must target critical geographical areas across the country and specific investment criteria.

“This must be the start of a much bigger move to re-energise the overlooked and ignored.  Sharing the drivers and proceeds of growth more evenly has to become business as usual – not some novel investment process.

“The UK is approaching a pivotal point in its economic history and we’ve seen how the Brexit process has consumed government capacity over the last two years.  In the meantime the world is changing under our feet.  The UK badly needs to fix the fundamental conditions for pan-UK growth if we are to repair problems of social division, uneven and piecemeal investment around the country, plus a growing skills gap.”

Rt Hon James Brokenshire MP added: “We have listened to people across Yorkshire and Humber who feel left behind by momentous changes to their local communities and I’m determined to provide the support they need to create a prosperous future beyond Brexit.

“This major new fund builds on over £9 billion in City and Growth Deals we have delivered since 2010 to help hardworking people reach their full potential and to build an economy that works for everyone.

“I look forward to working closely with local leaders as they develop their ideas and to hearing what more they propose to bring benefits to their local communities.”

Minister for the Northern Powerhouse, Jake Berry MP said: “We must create inclusive growth everywhere, which means enabling towns and people across the Northern Powerhouse to prosper.

“What has worked in Grimsby is a blueprint for how the Government can work with local people to build infrastructure, confidence and ambition.

“I am determined for the whole north to grow and this fund will ensure no one is left behind.”