Tories accused of levelling up 'stitch-up' over regional deprivation fund
March 5, 2021, 12:14 pm

Tories accused of levelling up 'stitch-up' over regional deprivation fund

Richmondshire in North Yorkshire, where the local MP is Rishi Sunak, is in the uppermost level for funding.

Richer areas with Conservative MPs prioritised for help, Guardian analysis finds

A fund intended to boost the UK’s most deprived places appears overwhelmingly skewed towards Tory-held areas, with dozens of Conservative regions in the top tier for assistance despite being relatively affluent, a Guardian analysis has found.

Among 93 English regions placed in the priority group of three tiers to receive money from the £4.8bn levelling up fund, 31 are included while not being ranked as in the top third most deprived places by average deprivation score.

Of these 31, 26 are entirely represented by Conservative MPs, with the others having at least one Tory MP.

Among the remaining five is Canterbury, is a highly marginal Labour-Conservative seat.

Labour described the way the fund was allocated as “divide and rule”, and called on ministers to publish the criteria for the tiers. One MP whose area was excluded from the top tier called the decision “a stitch-up”.

Four places are in the uppermost level for funding despite being ranked in the bottom third of English regions by deprivation score, the analysis found. All those areas have Conservative MPs.

One area is Richmondshire in North Yorkshire, where the local MP is Rishi Sunak, the chancellor, whose own department is leading work on the fund. This is among the top fifth of most prosperous places in England by the average deprivation score.

The analysis will add weight to complaints about “pork barrel politics” within Sunak’s budget on Wednesday. It included money for two other funds, both of which appear also to lean towards Conservative-held areas.

The chancellor announced £1bn in extra money for an existing towns fund, intended to help struggling areas. Of the 45 new grants unveiled this week, 39 will go to towns with a Conservative MP.

Finally, a community renewal fund, with a total spend of £220m, will also benefit Sunak’s Richmondshire region. In all, seven areas represented by cabinet ministers are among the 100 areas targeted for help.

Dan Jarvis, mayor of the Sheffield city region and the Labour MP for Barnsley Central, said the government’s treatment of the levelling up fund was “symbolic of their divide and rule approach”, noting that while Richmondshire was in the top level, Sheffield and Barnsley – both of which have notably higher deprivation levels – were in tier 2.

Jarvis called for the funding metric to be published: “It’s yet again proof that this government’s actions are levelling South Yorkshire down, pushing our region and some of the poorest places in the north to the back of the queue for investment.”

Paul Dennett, the Labour mayor of Salford, said he could not understand why his city was tier 2 for the fund: “Salford is the 18th most deprived area in the country according to government’s own index of multiple deprivation. We would have fully expected Salford to have been included in category 1.”

While the levelling up fund also covers Scotland and Wales, deprivation statistics between the nations are not directly comparable, meaning the Guardian analysis only covers England.

However, Plaid Cymru’s Westminster leader, Liz Saville Roberts, said she could not understand why Gwynedd, in north-west Wales, which includes her Dwyfor Meirionnydd constituency, was put in the lowest tier for help, saying that earlier EU funds prioritised it as among the least developed areas in Europe.

She said: “Our public money is being snatched for the budget of Tory bungs. This is not levelling up but a stitch-up.”

Boris Johnson was asked on Thursday about the allocation of the towns fund towards Conservative seats, arguing that his party’s win in the 2019 election meant “there are a lot of Conservative-represented towns”.

Speaking to reporters on a visit to Teesport in north-east England, he said: “I’ve asked about this and I’m told that the criteria was entirely objective – it takes in data on poverty, employment and so on.”

The row has been exacerbated by apparent confusion in government over how the decision to allocate spending had been made.

While Sunak had told a post-budget press conference that the metric was “based on an index of economic need, which is transparently published”, an apparent reference to the levelling-up fund, the fund’s official prospectus, says this information is coming “shortly”. Treasury sources were unable to say how long this might be.

A Treasury spokesman said: “The bandings do not represent eligibility criteria – and money will be allocated to the areas most in need. Further technical details will be published by the government in due course.”

The metrics for the towns fund also appear somewhat open to interpretation. While a wider pool of 541 eligible towns was selected based on official deprivation levels, further selection was down to factors including what was called “strategic alignment with government priorities”, investment opportunities, and other indicators of need.

Similarly, the formula for deciding who received money from the community renewal fund was also somewhat qualitative, based on an assessment by the housing ministry of seven “strategic fit considerations”.

source: Pamela Duncan

Levant

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BENEFIT, the Kingdom’s innovator and leading company in Fintech and electronic financial transactions service, held its Annual General Meeting (AGM) at the company’s headquarters in the Seef District.
During the meeting, shareholders approved all items listed on the agenda, including the ratification of the minutes of the previous AGM held on 26 March 2024. The session reviewed and approved the Board’s Annual Report on the company’s activities and financial performance for the fiscal year ended 31 December 2024, and the shareholders expressed their satisfaction with the company’s operational and financial results during the reporting period.
The meeting also reviewed the Independent External Auditor’s Report on the company’s consolidated financial statements for the year ended 31 December 2024. Subsequently, the shareholders approved the audited financial statements for the fiscal year. Based on the Board’s recommendation, the shareholders approved the distribution of a cash dividend equivalent to 10% of the paid-up share capital.
Furthermore, the shareholders endorsed the allocation of a total amount of BD 172,500 as remuneration to the members of the Board for the year ended 31 December 2024, subject to prior clearance by related authorities.
The extension of the current composition of the Board was approved, which includes ten members and one CBB observer, for a further six-month term, expiring in September 2025, pending no objection from the CBB.
The meeting reviewed and approved the Corporate Governance Report for 2024, which affirmed the company’s full compliance with the corporate governance directives issued by the CBB and other applicable regulatory frameworks. The AGM absolved the Board Members of liability for any of their actions during the year ending on 31st December 2024, in accordance with the Commercial Companies Law.
In alignment with regulatory requirements, the session approved the reappointment of Ernst & Young (EY) as the company’s External Auditors for the fiscal year 2025, covering both the parent company and its subsidiaries—Sinnad and Bahrain FinTech Bay. The Board was authorised to determine the external auditors’ professional fees, subject to approval from the CBB, and the meeting concluded with a discussion of any additional issues as per Article (207) of the Commercial Companies Law.
Speaking on the company’s performance, Mr. Mohamed Al Bastaki, Chairman BENEFIT , stated: “In terms of the financial results for 2024, I am pleased to say that the year gone by has also been proved to be a success in delivering tangible results. Growth rate for 2024 was 19 per cent. Revenue for the year was BD 17 M (US$ 45.3 Million) and net profit was 2 Million ($ 5.3 Million).

Mr. Al Bastaki also announced that the Board had formally adopted a new three-year strategic roadmap to commence in 2025. The strategy encompasses a phased international expansion, optimisation of internal operations, enhanced revenue diversification, long-term sustainability initiatives, and the advancement of innovation and digital transformation initiatives across all service lines.
“I extend my sincere appreciation to the CBB for its continued support of BENEFIT and its pivotal role in fostering a stable and progressive regulatory environment for the Kingdom’s banking and financial sector—an environment that has significantly reinforced Bahrain’s standing as a leading financial hub in the region,” said Mr. Al Bastaki. “I would also like to thank our partner banks and valued customers for their trust, and our shareholders for their ongoing encouragement. The achievements of 2024 set a strong precedent, and I am confident they will serve as a foundation for yet another successful and impactful year ahead.”
Chief Executive of BENEFIT; Mr. Abdulwahed AlJanahi commented, “The year 2024 represented another pivotal chapter in BENEFIT ’s evolution. We achieved substantial progress in advancing our digital strategy across multiple sectors, while reinforcing our long-term commitment to the development of Bahrain’s financial services and payments landscape. Throughout the year, we remained firmly aligned with our objective of delivering measurable value to our shareholders, strategic partners, and customers. At the same time, we continued to play an active role in enabling Bahrain’s digital economy by introducing innovative solutions and service enhancements that directly address market needs and future opportunities.”
Mr. AlJanahi affirmed that BENEFIT has successfully developed a robust and well-integrated payment network that connects individuals and businesses across Bahrain, accelerating the adoption of emerging technologies in the banking and financial services sector and reinforcing Bahrain’s position as a growing fintech hub, and added, “Our achievements of the past year reflect a long-term vision to establish a resilient electronic payment infrastructure that supports the Kingdom’s digital economy. Key developments in 2024 included the implementation of central authentication for open banking via BENEFIT Pay”
Mr. AlJanahi concluded by thanking the Board for its strategic direction, the company’s staff for their continued dedication, and the Central Bank of Bahrain, member banks, and shareholders for their valuable partnership and confidence in the company’s long-term vision.