Cllr Nesil Caliskhan says London boroughs waited in vain for an update in the spring statement on the UK Shared Prosperity Fund, and concerns remain that the capital will lose out.
There was a lot missing from the chancellor’s most recent spring statement. Many are left disappointed, including London boroughs, who eagerly listened for an update on the long-awaited, multi-billion UK Shared Prosperity Fund (UKSPF).
Due to launch this year, the UKSPF is the post-Brexit replacement for EU economic development funding – resources that to date London has mostly used to support employment and skills provision.
The optimistic view from council leaders like me is that the UKSPF is an opportunity to do things differently and to reduce bureaucracy. The fund could provide crucial investment in support of levelling up disadvantaged communities throughout the UK.
But we are frustrated by the continuing uncertainty over local allocations of UKSPF. In London, boroughs are concerned about the overall amount the capital might receive – crucial money for us given that some of the most deprived communities live in the capital and inequality is significant.
Last year’s allocations for the Community Renewal Fund, which was introduced to support economic development activity ahead of the UKSPF, saw London receive just £3.8m of funding. This represented only 1.9% of the total, despite the capital accounting for 13.4% of the UK population.
And with the coronavirus pandemic having hit London particularly hard, this money to support skills and employment has never been more vital. The latest ONS figures show 5% of Londoners are unemployed, the second highest rate in the country after the north-east.
The picture amongst our young people – many of whom will have faced disruption to their final years of formal education as a result of the pandemic – is even more worrying. Unemployment among Londoners aged 16-24 is 5% points higher than the pre-pandemic rate and significantly higher than the UK rate.
We know that the pandemic exacerbated London’s longstanding challenges around joblessness, economic exclusion, and poverty. We continue to suffer extremely high deprivation rates, with more than one in four Londoners living in relative poverty after housing costs are taken into account.
That is why it is essential that the UKSPF helps London make faster progress in boosting opportunity and spreading prosperity.
We’re reiterating our call for all regions – including London – to receive at least as much investment under UKSPF as through previous EU funds. And London must be given the freedom to focus investment on the employment and skills challenges where we know UKSPF resources can make a real difference to our most pressing problems.
The levelling up agenda must include levelling up all communities, including those within London.
Cllr Nesil Caliskan is London Councils’ Executive Member for Employment & Skills