Stronger towns fund ‘too little, too late’

A new £1.6bn government fund for ‘less prosperous’ areas of the country has been dismissed as a ‘drop in the ocean’ and ‘too little, too late’ by some Greater Manchester council leaders.

The Stronger Towns Fund – unveiled by the Prime Minister on Monday (4 March) – will see £281m handed out to the North West up to 2026, to help create jobs, train workforces and give local communities ‘a say on how the money is spent’.

Its launch comes ahead of Theresa May facing a crunch vote next week on her Brexit deal, and the announcement is said to be a way of gaining the support of MPs in leave-voting areas.

Such towns have a ‘glorious heritage’ and a ‘bright future ahead of them’, she said.

But the amount of funding has been dismissed by council leaders across GM who have seen local government budgets slashed over the last decade.

The Labour leaders have echoed their national party’s reaction to the fund, with shadow chancellor John McDonnell saying it ‘smacks of desperation from a government reduced to bribing MPs to vote for their damaging flagship Brexit legislation’.

A spokesperson for Rochdale Council said: “It’s too early to say what this could mean for Rochdale, but we will be looking at the bid criteria before liaising with the relevant council service to formulate a bid. 

“We look at all available funds and if beneficial to Rochdale would be keen to submit a bid.

Sean Fielding, leader of Oldham council, said the fund ‘is insulting to the people of Oldham who have been the victims of Tory cuts for almost 10 years’ and Councillor Brenda Warrington, leader of Tameside Council, said the offer from Westminster ‘fails to take into account the reality of the current funding crisis in local government’.

Communities secretary James Brokenshire said part of the funding will be allocated on a ‘needs basis’ and insisted it was not contingent on MPs in local areas supporting Mrs May’s Brexit deal.

A further share of the cash will be distributed through a bidding process.

It will help create new jobs, train workforces and boost local economies with local communities ‘having a say on how the money is spent’, ministers have said.

In a statement, Mr Brokenshire said: “We have listened to people who are concerned by momentous changes to their communities and I am determined to provide the support they need to create a more prosperous future beyond Brexit.

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

“I look forward to working closely with local leaders to take forward their encouraging proposals and to hear what more they propose to bring benefits to their communities.”

In a statement on Monday, Prime Minister Theresa May 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.”

James Illingworth, Local Democracy Reporter