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Will the Government’s 'Levelling up' plans work?

8 Feb 2022

The UK Government’s ‘Levelling Up’ white paper was published on 2 February, setting out an “ambitious blueprint” to improve lives by spreading opportunity more equally across the UK.

Following the publication of the white paper, Secretary of State for Levelling Up Michael Gove will invite the First Ministers of Scotland, Wales, and Northern Ireland to join a new collective effort to level up the whole of the United Kingdom. Said Prime Minister Boris Johnson:

“From day one, the defining mission of this Government has been to level up this country, to break the link between geography and destiny so that no matter where you live you have access to the same opportunities. The challenges we face have been embedded over generations and cannot be dug out overnight, but this white paper is the next crucial step. It is a vision for the future that will see public spending on R&D increased in every part of the country; transport connectivity improving; faster broadband in every community; life expectancies rising; violent crime falling; schools improving; and private sector investment being unleashed. It is the most comprehensive, ambitious plan of its kind that this country has ever seen and it will ensure that the Government continues to rise to the challenge and deliver for the people of the UK.”

Among the white paper’s 12 central missions are plans to:

  • Close the gap between the UK’s highest and lowest performing cities;
  • Improve educational attainment among children leaving primary school;
  • Narrow the gap in healthy life expectancy between the best and worst performing areas of the UK; and
  • Close gaps in transport and connectivity.

Ben Willmott, Head of Public Policy at the CIPD, broadly welcomed the “ambitious plans”, but did highlight some shortfalls:

“The ambition of the paper is to be welcomed in setting out some key ‘levelling up’ missions, for example, on skills and improving pay and productivity and measures of wellbeing in every part of the UK. Further devolution can potentially help boost local investment in skills development and support job creation and productivity. However, this will depend on sufficient additional funding being made available for this purpose and would be undermined without broader changes to skills and employment policy at a national level."

Wilmott continued:

“The paper recognises that skills are a crucial driver of economic disparities between people and places but fails to address some key long-standing problems with the skills system that underlie these inequalities. However, the announcement of a Future Skills Unit is a positive step and it is to be hoped that it can take the lead on advocating overdue changes to skills policy to address skills gaps within sectors and regions. For example, there is a glaring need for improvements in careers advice and guidance in schools, as well as major changes required to the apprenticeship system, including to the levy. There is also the need for further thinking on how employers, particularly SMEs, can meaningfully engage with the further education system."

TUC General Secretary, Frances O’Grady, felt more strongly that the white paper didn’t deliver, stating:

“If we don’t level up at work, we won’t level up the country. But the Government has failed to provide a serious plan to deliver decent well-paid jobs, in the parts of the UK that need them most. Insecure work and low pay are rife in modern Britain. And for far too many families hard work no longer pays. With the country facing a cost-of-living crisis, working families need action now to improve jobs and boost pay packets – especially after more than a decade of lost pay. Ministers should have announced a plan to get real wages rising – starting with a proper pay rise for all our key workers and the introduction of fair pay deals for low-paid industries. And they should have delivered the long-awaited Employment Bill to ban zero hours contracts – as well as new, meaningful investment in skills and good green jobs of the future. Without a plan to deliver decent work up and down the country, millions will struggle on, on low wages, and with poor health and prospects.”

The British Chambers of Commerce, meanwhile, recognised the white paper as a strong first step. Director General Shevaun Haviland said:

“This is an important first step in putting local economic prosperity at the heart of Government policy. This step though, must now rapidly become leaps and bounds. Business communities are keen to see the ambitions of this agenda turn into delivery in the very near future, improving prosperity around the country. What must now follow is the detail on the role local business leaders will have in oversight and delivery of the missions laid out. Where necessary, additional funding must be made available in order to drive change. Government must not forget the role that local businesses play in creating opportunity and prosperity in their communities, and should continue to work with British Chambers of Commerce and others to identify further ways to improve the business environment and enable more firms to grow and thrive.”