Durham: Council seeks to recover £1.2m for failed Levelling Up bids

Amanda Hopgood, Durham County Council's Liberal Democrat leader, shared concerns with Levelling Up Secretary Michael Gove

A council has asked the government to repay the £1.2m costs of its failed levelling up bids.

Durham County Council took action after five of its bids failed during the funding process.

A government spokesman said all councils were given feedback on unsuccessful bids, and Durham had received some £40m through other funds.

The council's costs, which include paying for external consultants, will not be refunded.

Failed bids included plans to regenerate town centres, improve transport and create cultural attractions.

'Exploring legal options'

The Department for Levelling Up, Housing and Communities (DLUHC) said bids earmarked for the third and final round of funding were chosen from a pool of previously unsuccessful bids, and £125,000 had been given to authorities deemed most in need after the first two rounds, to support bid development.

However, Liberal Democrat council leader Amanda Hopgood said officials were told County Durham was removed as a priority area before the third round was decided, "therefore reducing the likelihood of any success", she added.

The council also claims to have been left in the dark regarding second round feedback, according to the Local Democracy Reporting Service.

Ms Hopgood said concerns were shared with the Levelling Up Secretary Michael Gove, with the authority's disappointment expressed in "no uncertain terms".

The government's response to the council's correspondence, she said, was to suggest resubmitting bids in the third round.

However, a rule change meant any areas that benefited in the first round would not benefit in the next, a decision that affected County Durham's bids as Bishop Auckland had already received funding.

Prime Minister Rishi Sunak, pictured in 2021 as chancellor, visited Shildon to see how levelling up funding would be used to develop its heritage railway line

Ms Hopgood said: "Once again after the event we discovered the criteria had been changed yet again without anyone's knowledge.

"As a result of being made aware of this, and there being no more bidding rounds, a further letter has been sent to government requesting full reimbursement of the council's costs."

Labour councillor Kevin Shaw suggested the council explore legal options and "take every possible step" to get the funds back.

A DLUHC spokesperson said: "The £4.8bn Levelling Up Fund is giving a major boost to our towns and cities and is improving everyday life for people across the UK.

"Durham County Council has received £20m from the Long-Term Plan for Towns and £19m from the Future High Streets Fund."