Rachel Reeves says government has failed North East on levelling up

The Labour MP visited local businesses in Spennymoor with North East mayoral hopeful Kim McGuinness where she set out her party’s plans to improve opportunity across the region.

She also committed to maintaining the Treasury’s presence in Darlington if she becomes Chancellor.

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Speaking exclusively to the Northern Echo she said the government had failed on its levelling-up promise, adding that there are big opportunities for the region.

Ms Reeves said: “The government that got elected on a promise to level up has failed people here.

Shadow Chancellor Rachel Reeves (centre) on a visit to Spennymoor with Labour's North East Mayoral Candidate Kim McGuinness (right) and Spennymoor Town Councillor Stephen Gilling (left). (Image: SARAH CALDECOTT)

“There are big opportunities here and it’s great to be speaking from this lovely bar and café but there are boarded up shops and lots of deprivation in the area.

“I want to make sure that places have the funding they need and the power they need to make decisions on their own behalf, not always having to go cap in hand to Westminster.

“If Keir Starmer is Prime Minister and I am chancellor we want to work with mayors across the country to move more power back to local communities.”

She also said the Treasury’s Darlington Economic Campus will remain a key part of Labour’s levelling up plans.

The Leeds MP added: “We will be committed to keeping the economic campus in Darlington. As a Leeds MP I hope If I am given the chance to serve as Chancellor, I will be able to work from that Darlington office during recess when I am up in my constituency.

“I have a strong commitment to the North.

“I spend a lot of my time in the North of England both in Leeds and up in Northumberland and I expect I will be spending plenty of time in the Darlington campus.”

Rachel Reeves in Spennymoor. (Image: SARAH CALDECOTT)

Last month a report from cross-party MPs questioned the government’s “limited justification” for moving jobs out of Whitehall, including to Darlington, suggesting the decision to open the economic campus there had been “linked with the proximity of the town to then-chancellor Rishi Sunak’s constituency and with the suggestion that Darlington is a key ‘red wall’ seat”.

She also addressed the increasing cost of living hitting families after Labour analysis revealed monthly mortgage payments have increased by around £100 in parts of the region.

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“The figures speak for themselves. Our analysis reveals that monthly bills for the average household in the North East have soared by £443 since the last election. That’s £5,321 more a year,” she said.

 “The Office for National Statistics say rents are up 4.6% over the last twelve months.

 “Bank of England say rents could go up by £275 nationally if buy to let landlords pass on rates increases. That would work out as £183 in the North East.”