A £1.5 billion fund aimed at creating jobs in the poorest areas of Britain has been quietly dismantled by Labour, according to a new report. This move is seen as a betrayal by many, who argue that the government's decision to abolish assisted areas – regions eligible for special help due to their needs – was a crucial step in addressing regional disparities.
The fund, now known as local growth funds, has significantly reduced its financial firepower compared to its predecessor, the UK shared prosperity fund. In England and Scotland, funding is down by 76% from 2026, while in Wales, there's been a cut of 50%. This move has left many concerned that Labour's economic strategy is failing to deliver.
Regional policy has a proven track record of boosting output and creating jobs in the less prosperous parts of Britain. It has been instrumental in supporting sectors like textiles, shipbuilding, and coalmining, which have faced long-term decline. The fact that London is more than two and a half times as prosperous as Wales highlights the need for a more vigorous regional policy.
Labour's decision to axe the fund has sparked debate about the future of regional assistance in Britain. While some argue that it may be time to reassess the role of regional policy, others believe that Labour should take advantage of the freedom to develop a more expansive policy – including bringing back assisted areas status and making it more widely available.
The government's argument that its economic strategy is driven by the quest for faster growth seems hollow when compared to the historical success of regional assistance. A rising tide may lift all boats, but some are certainly lifted higher than others. The question remains whether Labour can adapt its strategy to address the growing disparities in Britain's regions and create jobs in areas like Abertillery, Maesteg, and Merthyr Tydfil.
The Welsh valleys, where long-term ill-health has led to a quarter of the working-age population claiming incapacity benefits, are a prime example of an area crying out for support. If Labour truly wishes to address regional disparities, it must take bold action – not quietly dismantle vital funds that could help create jobs and stimulate local economies.
The fund, now known as local growth funds, has significantly reduced its financial firepower compared to its predecessor, the UK shared prosperity fund. In England and Scotland, funding is down by 76% from 2026, while in Wales, there's been a cut of 50%. This move has left many concerned that Labour's economic strategy is failing to deliver.
Regional policy has a proven track record of boosting output and creating jobs in the less prosperous parts of Britain. It has been instrumental in supporting sectors like textiles, shipbuilding, and coalmining, which have faced long-term decline. The fact that London is more than two and a half times as prosperous as Wales highlights the need for a more vigorous regional policy.
Labour's decision to axe the fund has sparked debate about the future of regional assistance in Britain. While some argue that it may be time to reassess the role of regional policy, others believe that Labour should take advantage of the freedom to develop a more expansive policy – including bringing back assisted areas status and making it more widely available.
The government's argument that its economic strategy is driven by the quest for faster growth seems hollow when compared to the historical success of regional assistance. A rising tide may lift all boats, but some are certainly lifted higher than others. The question remains whether Labour can adapt its strategy to address the growing disparities in Britain's regions and create jobs in areas like Abertillery, Maesteg, and Merthyr Tydfil.
The Welsh valleys, where long-term ill-health has led to a quarter of the working-age population claiming incapacity benefits, are a prime example of an area crying out for support. If Labour truly wishes to address regional disparities, it must take bold action – not quietly dismantle vital funds that could help create jobs and stimulate local economies.
This is so frustrating... I mean, I get where they're coming from with trying to boost growth and all that, but you can't just cut off the lifeblood of a region like this and expect everything to be okay. 
It's like they think the valleys are just gonna magically become thriving again without any help. Newsflash: it takes more than just some fancy economic plan to turn things around in places like Abertillery and Maesteg. 
They need real, tangible support – not just empty promises. And what's with the 76% cut in funding for England and Scotland? That's just devastating. 
I'm all for a more balanced approach to growth, but this just feels like Labour is throwing regional policy under the bus. 
It feels like they're more worried about London getting even richer than supporting other areas that are struggling. The valleys in Wales are literally crying out for help! 
And I get why people are saying Labour should bring back assisted areas status and make it more widely available... it's time to stop playing it safe and take bold action 
But, on the flip side, some ppl might say they need to reassess regional policy and see if it's still effective... idk man, I'm just worried about those communities that are already struggling 
what about all those ppl struggling 2 make ends meet? labours economic strategy shouldnt be so one-dimensional, u feel?
. we all know london's gonna keep on booming while places like abertillery and maesteg struggle to make ends meet 
. the fact they're just quietly dismantling this fund without even a proper debate about it... it's just another example of them letting london-centric interests take over 
.
