Grimsby and Cleethorpes communities could miss out on vital funding, as the government redirects money from dormant bank accounts towards smaller towns, bypassing many deprived areas.

Initially, the plan was to use dormant assets for a community wealth fund targeting deprived neighbourhoods. Now, the focus has shifted to towns with populations under 20,000 – many of them in the South of England.

This decision has alarmed a cross-party group MPs. They’ve expressed their dismay, urging a reconsideration. Their concerns are justified, as a mere 7.6% of the 225 ‘left behind’ neighbourhoods are in these smaller towns. These areas are characterised by economic challenges, limited community engagement, and a lack of communal spaces.

While many local authorities support community wealth funds, the recent government criteria adjustment risks diluting its impact. Labour’s Dame Diana Johnson, co-chair of the APPG for left behind neighbourhoods, highlighted the government’s earlier commitment to ‘neighbourhoods’ with less than 10,000 residents. The sudden shift to towns of up to 20,000 people excludes many needy communities.

The APPG has voiced its distress over this shift, emphasising the potential undermining of the community wealth fund’s core purpose. Grimsby and Cleethorpes, along with other deprived areas, could greatly benefit from such funds.