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Tories' national service plan will divert funding from poorest areas, Institute for Fiscal Studies warns
An armoured personnel carrier, on the training range at Bovington Camp, a British Army military base in Dorset, February 22, 2023.

RISHI SUNAK claimed he was committed to levelling-up after it emerged the poorest areas of Britain may be deprived of high street and community safety funding to launch the Tories’ national service.

The Institute for Fiscal Studies (IFS) warned today that areas with high deprivation have the most to lose under government plans to close its flagship UK Shared Prosperity Fund (UKSPF) and use £1.5 billion to support military and volunteering opportunities for 18-year-olds.

This could result in wealthier areas across southern England receiving “a substantial increase in net funding” as the UKSPF is worth up to 45 times less per person in areas such as Merthyr Tydfil in south Wales, Cornwall and the Tees Valley, the think tank said.

IFS associate director David Phillips said: “The Conservatives’ plan to wind up the UKSPF and use the resources instead to help pay for a new national service scheme would represent a major shift in how funding is allocated across the country.

“Rather than being targeted at poorer areas and aimed at levelling up, the funding would be spread across the country based on where 18-year-olds are undertaking their military or community service.

“The scheme may therefore create opportunities for young people across the UK but would mean hundreds of millions less in funding for community and economic development in Wales, Cornwall and the north and Midlands of England.”

Merthyr Tydfil County Borough Council’s initiatives on its Shared Prosperity Fund webpage include a start-up grant scheme of up to £2,000, a decarbonisation scheme for up to £50,000, and a tourism attraction capital scheme for up to £20,000.

Prime Minister Mr Sunak said he was “absolutely committed” to levelling up in Cornwall after being asked if regions receiving UKSPF cash would miss out.

Usdaw general secretary Paddy Lillis said the Tory proposals for national service “will be disastrous for a struggling retail industry and young people.”

The UKSPF “desperately needs to be invested in high streets and our communities to help save our shops and halt the proliferation of so called ‘ghost-towns’,” he told the Morning Star.

He warned the plans would leave a “significant” number of young Usdaw members who work out of necessity no longer make ends meet, “while at the same time there has been no mention of how employers will be supported in covering staff hours for those required to take part in the scheme.”

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