Labour has called for a full Government refund of the £1.2m spent by Durham County Council on unsuccessful Levelling Up bids.
The group claims changes to policy, after bids had already been submitted, which saw County Durham downgraded from “Priority 1” status, meant the county missed out.
The Tory-led Coalition running Durham County Council spent £1.2m on consultants and research to prepare comprehensive bids – vital investment that could have eased the financial burden on some of the most vulnerable or improvements in the most deprived areas in County Durham – for Round 3 Levelling Up funding.
Labour says that if costs are not recovered, then legal proceedings should be used to secure the refund via judicial review.
“The whole Levelling Up process was a Tory charade,”
Said Cllr Kevin Shaw, who raised questions about the Levelling Up process at November’s Full Council.
“In Round 1, we get tossed some funding for half a bypass to satisfy a Tory MP election pledge, which then seemingly gets us barred from Round 2 after the Tory Government changed policy after bids were submitted. Then, rather than return the money DCC used in Round 2, ask us to bid in Round 3…in which we miss out entirely 3 because they move the goal posts yet again.
“Under the Coalition administration, County Durham has not just been left behind, it has been forgotten entirely. Landmark projects have stalled or been cancelled, Council Tax is has spiralled, poverty levels rocketed and our most deprived areas have been ignored while culture funding was squandered on a high-end restaurant in the city that will require massive additional revenue support – serious questions must be asked about what is happening at DCC.
“The time is way past for this chaotic Coalition to finally realise what this Tory Government is all about and that we won’t take it anymore! £1.2m has been taken from deprived communities and families in County Durham to spend on preparing Levelling Up bids only for the Government to change its rules at the 11th hour. That money must be returned.”
At Full Council, Labour’s Cllr Shaw asked Leader, Cllr Amanda Hopgood, to update on bids and reveal the total cost to DCC for preparing bids for rounds 1,2 and 3. She confirmed the Council had spent £1.2m preparing bids, which all failed.
She explained that Government rule changes in Round 2, after bids were submitted, ruled out County Durham as it received funding in Round 1. Following Government guidance to resubmit bids in Round 3, the Council did just that, only to discover the criteria had changed yet again without anyone’s knowledge, once again after bids had been submitted. This time with County Durham losing its Priority 1 status area.
Cllr Shaw added:
“It’s hard to weigh up who has had the worst impact on County Durham, the Tory-led Council or the Tory Government.
“If this money is lost it will be unforgiveable, but this council must not and, in a cost-of-living crisis, cannot afford to write off £1.2m, lost because of a last minute change by the Government. This money must be recouped.
“The Coalition must finally stand up for the residents of County Durham and demand that money back!”
Labour believes that failure to recover costs incurred should see the Council expose the unfairness of the Levelling Up process by seeking judicial review of process.