{"id":6958,"date":"2025-07-31T07:47:06","date_gmt":"2025-07-31T07:47:06","guid":{"rendered":"https:\/\/cita.co.uk\/news\/?p=6958"},"modified":"2025-07-31T07:47:06","modified_gmt":"2025-07-31T07:47:06","slug":"major-delays-hit-4-8bn-levelling-up-project-programme","status":"publish","type":"post","link":"https:\/\/cita.co.uk\/news\/major-delays-hit-4-8bn-levelling-up-project-programme\/","title":{"rendered":"Major delays hit \u00a34.8bn Levelling Up project programme"},"content":{"rendered":"

The government\u2019s flagship Levelling Up Fund is facing serious delivery delays, with nearly all projects running behind schedule and costs spiralling due to inflation and underdeveloped bids.<\/p>\n

A major evaluation of the \u00a34.8bn programme has lifted the lid on the challenges facing local authorities trying to deliver regeneration, transport and cultural schemes backed by the fund.<\/p>\n

According to the Ministry of Housing, Communities & Local Government\u2019s own process review<\/a>, a staggering 95% of projects funded in Rounds 1 and 2 have been delayed \u2014 with nearly 40% now more than a year behind schedule.<\/p>\n

\n
<\/a><\/div>\n<\/div>\n

A race to submit for funding by council meant that only 3% were “shovel ready” at the point of award.<\/p>\n

This stored up a welter of problems that severely hampered the fund\u2019s aim to visibly improve everyday life across the UK, says the review.<\/p>\n

Headline findings<\/strong><\/h4>\n\n\n\n\n\n\n\n\n\n
Key Stat<\/th>\nDetail<\/th>\n<\/tr>\n<\/thead>\n
Total LUF value<\/td>\n\u00a34.8bn across 271 bids<\/td>\n<\/tr>\n
% of delayed projects<\/td>\n95%<\/td>\n<\/tr>\n
Average delay length<\/td>\n12 months<\/td>\n<\/tr>\n
Top causes of delay<\/td>\nInflation, lack of design readiness, regulatory hold-ups<\/td>\n<\/tr>\n
Construction-ready at award<\/td>\nOnly 3%<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Round 1 of the Fund launched with little notice in March 2021. Councils were given just three months to pull together complex bids \u2014 often with no full designs or cost plans.<\/p>\n

Officials had to be recruited and trained at speed, and guidance was vague. Round 2 improved slightly with an online portal and better assessment tools, but delays and poor communication still plagued the process.<\/p>\n

\n
<\/a><\/div>\n<\/div>\n

In Round 3, bidders were invited to resubmit unsuccessful Round 2 proposals \u2014 but rising construction costs meant many had to be rescoped, causing yet more delays.<\/p>\n

The Government report reveals that most schemes are stuck in pre-construction stages.<\/p>\n

Planning, design, procurement and inflation have all contributed to major slippages.<\/p>\n

\n
<\/a><\/div>\n<\/div>\n

Two-thirds of projects cited inflation as their top delivery barrier, with another 40% flagging underfunding.<\/p>\n

Common hurdles to progress:<\/p>\n