Keir Starmer expands Pride in Place scheme to 40 new areas

LONDON – Labour leader Keir Starmer has unveiled a significant expansion of his party's "Pride in Place" scheme, pledging to empower an additional 40 towns and cities across the UK with new funding and devolved powers to spearhead local regeneration. The announcement positions community-led growth as a central pillar of Labour's economic strategy, drawing a sharp contrast with the government's top-down "Levelling Up" agenda.

The policy, which aims to revitalise struggling high streets and decaying town centres, represents a calculated move to address regional inequality and rebuild local economies from the ground up. It signals a potential shift in public investment under a Labour government, prioritising smaller, catalytic projects driven by local authorities over large-scale, centrally managed infrastructure programmes.

Starmer framed the policy not just in economic terms but as a mission to rebuild the nation's social fabric. Speaking at the announcement, he articulated a vision centred on communal strength: "That is where people come together, it is where you will find our common good and that is where we will discover once again the courage in each other."

The Mechanics of "Pride in Place"

The "Pride in Place" scheme is designed as a flexible framework for local renewal, moving away from a one-size-fits-all approach. While full details will be outlined in the party's election manifesto, the core components focus on giving local leaders the tools and capital to address their unique challenges.

The expanded programme would be built on several key principles:

• Devolved Authority: The central promise is a transfer of power from Whitehall to town halls. Local authorities in the 40 selected areas would be given greater control over planning, transport, and, crucially, a dedicated funding pot for regeneration.

• Catalytic Funding: The scheme is designed not to cover the full cost of large projects but to act as seed capital. The goal is to de-risk private investment by using public funds to kickstart developments, such as renovating derelict buildings or improving public realms, thereby attracting further private sector capital.

• Community Hubs: A primary focus is the creation or restoration of community assets. This could include converting empty retail units into libraries, health clinics, or shared workspaces, with the aim of increasing footfall and restoring a sense of civic purpose to town centres.

• Bespoke Renewal Plans: Each of the 40 areas will be tasked with developing a "Town Renewal Plan" in consultation with local businesses and residents. This ensures that investment is targeted towards specific local needs, whether it's boosting the night-time economy, creating green spaces, or improving digital connectivity.

Financial Implications and Scrutiny

As with any major spending pledge, the financial underpinnings of the "Pride in Place" expansion will face intense scrutiny. Labour has committed to stringent fiscal rules, and questions will immediately turn to the source and scale of the funding.

Key Financial Questions:

• Total Cost: Labour has not yet attached a precise figure to the 40-town expansion, but sources suggest it would represent a multi-billion-pound commitment over the course of a parliamentary term. The final number will be a critical data point for assessing its affordability.

• Funding Source: The party faces a choice between new borrowing, reallocating funds from existing departmental budgets (such as the current Levelling Up Fund), or raising taxes. Financial analysts will be watching for clarity on whether this constitutes new money or a re-badging of existing spending commitments.

• Return on Investment: The economic case rests on the scheme's ability to generate a positive return. Success will be measured not only in direct job creation but also in increased business rates revenue for councils, higher property values, and a reduction in the social costs associated with urban decay. Quantifying the "pride" element, however, remains a significant challenge for policymakers.

A Challenge to "Levelling Up"

The announcement is an undisguised challenge to the Conservative government's flagship "Levelling Up" policy. For years, the government has allocated billions through competitive bidding rounds via the Levelling Up Fund, a process critics have labelled a "begging bowl culture" that favours areas with the resources to write compelling bids.

Labour's "Pride in Place" model seeks to differentiate itself in several strategic ways:

• From Competition to Allocation: The scheme appears to move away from competitive bidding towards a more strategic allocation of funds to areas identified as having the greatest need and potential, reducing the administrative burden on under-resourced councils.

• Bottom-Up vs. Top-Down: By empowering local mayors and council leaders, Labour is promoting a "bottom-up" philosophy. This contrasts with the perception of "Levelling Up" as a "top-down" initiative where key decisions are ultimately made by ministers in London.

• Long-Term Partnership: The proposal implies a longer-term, more stable funding settlement for the selected towns, allowing for multi-year planning rather than a reliance on one-off project grants.

Looking Ahead: The Path to Implementation

Should Labour form the next government, the "Pride in Place" scheme will become a key test of its ability to deliver on its economic promises. The immediate next step would be the formal identification of the 40 areas, a politically sensitive process that will be closely watched.

The success of the programme will hinge on execution. A future government would need to ensure that local authorities have the capacity and expertise to manage these new funds effectively, avoiding the bureaucratic delays and inefficiencies that have plagued previous regeneration initiatives.

Ultimately, this policy signals a clear direction of travel for Labour's approach to regional economics: a belief that sustainable growth is best nurtured by empowering the communities themselves. While the vision is ambitious, its financial viability and practical implementation will determine whether it can truly revitalise the towns it aims to serve.