Most urban areas in the UK have been badly affected by the economic hit from COVID-19, but not received money from the government's new Levelling Up Fund, according to new research.
Sky News analysis found that only 15% of the new funding went to the 25% of areas most affected by the pandemic.
@UoNEconomic’s Prof John Gathergood says this is because the government based its decisions on old data even though the pandemic has "substantially changed the picture."
"If money isn't going into the right areas... there won't be levelling up in the right way across the UK.”
The result is that many of the hardest-hit places with the highest existing levels of deprivation missed out on funding – the top right areas on this chart.
In case you missed the first article in this series, we looked at how effectively the Levelling Up Fund is being targeted at the forgotten parts of the UK.
Sky News analysis has found that areas with high levels of deprivation suffered the most from austerity.
For the most deprived 10% of local authorities, spending power per person fell by almost two-fifths between 2010 and 2021, twice as much as it did for the least deprived 10%.
So, why has this happened? Largely because of changes to the way govt funds councils, which ties budgets closely to the wealth of the area.
Needs-based grants rely far more on council tax and retained business rates levied on residential and commercial properties in their area.
This has disproportionately affected poorer areas because they have lower property values.
One council that has suffered from this is Thanet, an area on the coast of Kent. It now gets only 5% of the government grant revenue it received in 2013.
Lib Dem candidate Helen Morgan overturned a huge Tory majority to triumph in the North Shropshire by-election in a shock result.
Here’s the latest news from this morning, as the prime minister is warned he is 'on last strike' 👇
Watch the moment the Liberal Democrats won the North Shropshire by-election.
Helen Morgan polled 17,957 votes, while the Tory candidate Neil Shastri-Hurst was second on 12,032
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"Tonight, the people of North Shropshire have spoken on behalf of the British people," says new Lib Dem MP Helen Morgan as she marks her historic North Shropshire win
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