A Teesside MP has accused a minister of “complete ignorance” after he challenged the government on levelling up in Billingham.

Alex Cunningham, Labour MP for Stockton North, spoke in Parliament about the town, which has lost out on two successive rounds of government levelling up funding, a disappointment which has led to charged debate at Labour-led Stockton Council in recent weeks.

In response, levelling up minister Dehenna Davison accused Labour of poor management and investment.

Mr Cunningham said: “For generations the people of Billingham have made a massive contribution to the British economy, amongst others through the chemical and pharmaceutical industries, and they continue to do so today. But sadly their once state-of-the-art town centre, also built on their backs, has seen better days.

“So can the minister explain, when it comes to levelling up, why has the government turned its back on those who have contributed the most and deserve investment in their town?”

Ms Davison, also an MP for Bishop Auckland, replied: “What I would suggest is perhaps the reason that some areas have been run down is due to decades of Labour poor management and poor Labour investment. This government is putting billions of pounds into regeneration and I would encourage him to make sure a bid comes in for Levelling Up Fund round three.”

Mr Cunningham later responded: “The minister showed her complete ignorance yesterday by suggesting Billingham has had no investment from Stockton Council when the facts show the complete opposite. Since 2011 alone the town has had upwards of £23m worth of investment in much loved facilities and events.

“Even the most basic of research from the Minister would have uncovered that. She needs to correct the record. The only people who have let the people of Billingham down are the Conservatives.”

He pointed to investment by the council including an £18m refurbishment of Billingham Forum in 2011, £2m in public spaces in 2013, a £3.5m new library and customer service centre in 2014, new play equipment in John Whitehead Park, improved theatre seating and support of the Billingham International Folklore Festival. He said the council had committed to £10m in a pitch to take control of the Billingham shopping precinct, support retail and create jobs, but the levelling up bid was turned down.

Ms Davison has been contacted for further comment.

Billingham was discussed before the council voted on its budget with a 4.9% council tax rise in February. Labour and Conservative councillors accused each other of ignoring, overlooking or abandoning the town and its residents as the authority committed to explore options for a regeneration scheme with £10m borrowing.

The town was mentioned again regarding levelling up and the government’s Spring Budget in Stockton Council’s last cabinet meeting, where Cllr Nigel Cooke, cabinet member for regeneration and housing, said: “We’re still reeling from the decision the government took not so long ago about the refusal of the levelling up funding bid in Billingham.

“Just what do you have to do to get that funding and what has the government got against places like Billingham?”

Council leader Cllr Bob Cook accused the government of “changing the goalposts” once the funding application was in, wasting resources in council staff, time, money and consultation to residents and businesses.

Cllr Ann McCoy added: “As a Billingham councillor, I have to say and I make no apology for it, it was appalling that Billingham was left out. There was a lot of work done with businesses and residents so their expectations were raised only to be shot down by this government.

“I just hope they have another think about it because that’s what the people of Billingham deserve.”