What is the levelling up fund?
The Levelling Up Fund was a £4.8 billion UK government fund launched in 2021. It paid for local projects such as town centre regeneration, transport schemes and cultural sites. Councils bid for money in three competitive rounds. It aimed to reduce regional inequality, especially in poorer towns.
The fund was part of the levelling up agenda, which aimed to narrow gaps in wealth, health and opportunity between regions. Councils across the UK could bid for up to £20 million per project, or more for transport schemes. Local MPs could formally back bids in their area. Places were ranked by need, using measures such as productivity, unemployment and transport links.
Round one awarded around £1.7 billion in October 2021. Round two awarded about £2.1 billion in January 2023. A third round of around £1 billion went to projects that had narrowly missed out, in November 2023. Projects included road upgrades, new arts venues and market halls. Successful bids ranged from bypasses and bus stations to museums and new public spaces.
The fund was widely criticised. Councils spent large sums preparing bids, many of which failed. Critics argued competitive bidding pitted places against each other and that money was spread too thinly. Some projects were delayed by rising building costs. Later governments have moved towards longer-term funding for local areas rather than one-off competitions. Some projects were cancelled or scaled back.
- Funds councils in England
- Sets planning rules and housebuilding targets
- Supports affordable and social housing
- Leads on building safety after Grenfell
- Agrees devolution deals with regional mayors
Budget: About £30bn to £40bn a year, much of it passed to councils. Staff: About 4,000
What it runs or funds
Homes England, Planning Inspectorate, Regulator of Social Housing, Building Safety Regulator, Valuation Tribunal Service
Did you know? The department has been renamed many times; it got its current name back in 2024.
The left criticised the fund as too small, too slow and politically skewed, after years of cuts to council budgets.
The right saw it as a way to deliver visible improvements in towns that felt left behind, though some questioned value for money.
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How much was the Levelling Up Fund?
£4.8 billion across three rounds between 2021 and 2023.
Who could bid for the Levelling Up Fund?
Local councils across the UK, often with formal backing from local MPs.
Does the Levelling Up Fund still exist?
No new rounds are running. Funded projects are still being delivered.
What is MHCLG responsible for?
Housing, planning and local councils in England. MHCLG covers housing, planning, local councils and communities in England.
Where does much of MHCLG's budget go?
To councils. Much of its budget is passed to councils.