London’s local authorities have expressed frustration after the capital was excluded from a £1.5 billion regeneration programme designed to revitalise “left behind” communities across the UK.
The Plan for Neighbourhoods, announced by Chancellor Rachel Reeves, is a rebranded version of the Conservative Government’s Long-Term Plan for Towns, which was originally launched in October 2023. Under the initiative, 75 towns across England, Scotland, Wales, and Northern Ireland will receive £20 million each to invest in community infrastructure, tackling crime, and boosting employment. However, London remains the only region not to benefit from the scheme, despite having some of the country’s most deprived communities.
Frustration over exclusion
The decision to exclude London has drawn sharp criticism from local government representatives, who argue that the capital faces significant deprivation and would greatly benefit from investment.
A London Councils spokesperson said:
“The capital is home to some of the most deprived communities in the country, with one in four Londoners living in poverty. There are indisputably neighbourhoods here that could benefit considerably from regeneration investment.
“The eligibility criteria for this programme did not take into account London’s challenges. For example, we are concerned the specific deprivation measures used do not adequately capture the impact of London’s extreme housing costs.”
The capital’s most deprived boroughs include Hackney, Tower Hamlets, Newham, and Barking and Dagenham, as well as areas like North Kensington and the western side of the Lea Valley.
Yet, government sources have defended the decision, citing the programme’s population criteria. The scheme is designed for towns with populations between 20,000 and 100,000, which excludes London as a whole, given its population of over nine million.
Criticism of inconsistent selection
Despite this population limit, several towns included in the scheme exist within much larger urban areas. Critics have pointed out that places like Leigh in Greater Manchester (45,000 population) and Dudley in the West Midlands (64,000 population) received funding, even though they form part of metropolitan regions with populations in the millions.
Notably, both Leigh and Dudley switched from Labour to the Conservatives in the 2019 election, raising questions about political considerations in the selection process.
Labour’s promise to ‘reform’ the scheme falls flat
During her autumn Budget, Chancellor Rachel Reeves promised to retain and reform the programme she inherited from the previous government. However, rather than expanding it to include deprived areas in London, Labour has chosen to maintain the list of 75 towns already selected by the Conservatives.
Moreover, no additional funding has been provided beyond the £1.5 billion initially pledged by the former administration. Instead, the Government claims it has “doubled the scope” of eligible projects, allowing investment in high streets, local parks, youth clubs, cultural venues, libraries, and health services.
Government defends decision
The Ministry of Housing, Communities and Local Government (MHCLG) has defended the Government’s approach, arguing that the funding was an “unfunded commitment” when Labour took office.
An MHCLG spokesperson said:
“Through our £1.5 billion Plan for Neighbourhoods, we are delivering on the previous Government’s unfunded commitment, to give places what they have been promised and put communities at the heart of these changes.”
While London Mayor Sadiq Khan’s office declined to comment, Labour’s decision to stick with the Tory-designed funding map has left many questioning whether the capital’s deprived areas will receive any meaningful regeneration support under the new administration.
London’s challenges overlooked
Many argue that the specific measures of deprivation used to determine eligibility fail to reflect London’s unique economic pressures.
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Housing costs in the capital are significantly higher than in other UK regions, meaning that even those on relatively higher incomes often struggle to afford basic necessities. Low-income Londoners are disproportionately affected by high rents, expensive childcare, and transport costs—factors that were not sufficiently accounted for in the Government’s methodology.
London Councils and local MPs are now calling on the Labour Government to introduce a dedicated funding stream for deprived areas within the capital, arguing that failing to do so will widen regional inequalities rather than address them.
A missed opportunity?
The exclusion of London from the Plan for Neighbourhoods marks another chapter in the ongoing debate over levelling up and regional disparities in the UK.
While the programme is intended to restore pride in struggling communities, critics argue that ignoring the capital’s most deprived districts undermines the Government’s commitment to fairness and equality.
With no additional funding allocated and no plans to reconsider London’s exclusion, many of the capital’s hardest-hit communities will have to look elsewhere for support—despite their evident need for investment and regeneration.
