This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.bbc.co.uk/news/uk-politics-62436193

The article has changed 14 times. There is an RSS feed of changes available.

Version 5 Version 6
Tory leadership: I took money out of deprived urban areas says Sunak Tory leadership: I took money out of deprived urban areas says Sunak
(32 minutes later)
Rishi Sunak: I diverted money from deprived urban areasRishi Sunak: I diverted money from deprived urban areas
Rishi Sunak: I diverted money from deprived urban areasRishi Sunak: I diverted money from deprived urban areas
A clip has emerged of ex-Chancellor Rishi Sunak saying he diverted public money from "deprived urban areas".A clip has emerged of ex-Chancellor Rishi Sunak saying he diverted public money from "deprived urban areas".
In a video the New Statesman has obtained, the Tory leadership candidate tells an audience in Tunbridge Wells, Kent, he wanted to ensure "areas like this" got the funding they deserved.In a video the New Statesman has obtained, the Tory leadership candidate tells an audience in Tunbridge Wells, Kent, he wanted to ensure "areas like this" got the funding they deserved.
Allies say he was referring to changing "outdated" rules to better reflect need in rural areas and towns.Allies say he was referring to changing "outdated" rules to better reflect need in rural areas and towns.
Labour said the leadership race was revealing the Tories' "true colours".Labour said the leadership race was revealing the Tories' "true colours".
The party's shadow levelling up secretary Lisa Nandy said: "It's scandalous that Rishi Sunak is openly boasting that he fixed the rules to funnel taxpayers' money to prosperous Tory shires."The party's shadow levelling up secretary Lisa Nandy said: "It's scandalous that Rishi Sunak is openly boasting that he fixed the rules to funnel taxpayers' money to prosperous Tory shires."
Ms Nandy has written to Levelling Up Secretary Greg Clark asking him to "urgently investigate" the changes made by Mr Sunak to funding formulas.Ms Nandy has written to Levelling Up Secretary Greg Clark asking him to "urgently investigate" the changes made by Mr Sunak to funding formulas.
Pressure is on for next PM to tackle economy swiftlyPressure is on for next PM to tackle economy swiftly
What are the policies of final two hoping to be PM?What are the policies of final two hoping to be PM?
Truss and Sunak row over Bank's recession warningTruss and Sunak row over Bank's recession warning
In the clip - filmed on 29 July - Mr Sunak says: "I managed to start changing the funding formulas, to make sure areas like this are getting the funding they deserve.In the clip - filmed on 29 July - Mr Sunak says: "I managed to start changing the funding formulas, to make sure areas like this are getting the funding they deserve.
"We inherited a bunch of formulas from Labour that shoved all the funding into deprived urban areas and that needed to be undone."We inherited a bunch of formulas from Labour that shoved all the funding into deprived urban areas and that needed to be undone.
"I started the work of undoing that.""I started the work of undoing that."
Mr Sunak's team has said he was referring to changes to Treasury rules on investment and the introduction of the levelling up fund. Mr Sunak's team have said he was referring to changes to Treasury rules on investment and the introduction of the levelling up fund.
In 2020 the government announced that Treasury equations would be updated to prioritise spending which had regional impact, rather than simply calculating the benefit compared to cost.
The Treasury said its previous formulas had favoured investment in south-east England and London.
Announcing the levelling up fund in November 2020, the government said it would prioritise bids "to drive growth and regeneration in places in need, those facing particular challenges, and areas that have received less government investment in recent years".Announcing the levelling up fund in November 2020, the government said it would prioritise bids "to drive growth and regeneration in places in need, those facing particular challenges, and areas that have received less government investment in recent years".
A spokesperson for Mr Sunak said: "Levelling up isn't just about city centres, it's also about towns and rural areas all over the country that need help too."A spokesperson for Mr Sunak said: "Levelling up isn't just about city centres, it's also about towns and rural areas all over the country that need help too."
"Travelling around the country, he's seen non-metropolitan areas that need better bus services, faster broadband in towns, or high quality schools. That's what he'll deliver as prime minister.""Travelling around the country, he's seen non-metropolitan areas that need better bus services, faster broadband in towns, or high quality schools. That's what he'll deliver as prime minister."
And Tees Valley Mayor Ben Houchen - a Sunak supporter - told BBC Radio 4's World at One programme the clip had been taken out of context, and the issue was about fairness, And Tees Valley Mayor Ben Houchen - a Sunak supporter - told BBC Radio 4's World at One programme the clip had been taken out of context, adding: "What he was getting across was why is it that poor urban areas receive significantly higher funding than poor rural or town areas."
"What he was getting across was why is it that poor urban areas receive significantly higher funding than poor rural or town areas."
Liz Truss is competing with Rishi Sunak to become the next prime ministerLiz Truss is competing with Rishi Sunak to become the next prime minister
He said places - such as Devon, Teesside and parts of Tunbridge Wells - needed fairer funding. He said places such as Devon, Teesside and parts of Tunbridge Wells needed fairer funding.
But Conservative MP and Truss ally Jake Berry tweeted: "In public Rishi Sunak claims he wants to level up the North, but here, he boasts about trying to funnel vital investment away from deprived areas? He says one thing and does another."But Conservative MP and Truss ally Jake Berry tweeted: "In public Rishi Sunak claims he wants to level up the North, but here, he boasts about trying to funnel vital investment away from deprived areas? He says one thing and does another."
Rishi Sunak's comments appear to fly in the face of recent Conservative rhetoric about levelling up and securing Labour's former "red wall".
Why would the former chancellor be boasting about diverting funding away from deprived urban areas?
In short, because he was in Royal Tunbridge Wells at the time, one of his party's traditional heartlands, speaking to grassroots members.
And while the Conservative party doesn't publish data on its membership, research shows most of them live in the South East of England, and are generally older and relatively wealthy.
Mr Sunak's team insist he was talking about changes to ensure pockets of deprivation in towns and rural areas got the funding they deserved.
His opponents will seize on his comments as not just clumsy, but another example of him appearing to be out of touch.
A Truss campaign source said: "Levelling up isn't about pitting one area of the country against another, or laying dividing lines between urban v rural, towns v cities.A Truss campaign source said: "Levelling up isn't about pitting one area of the country against another, or laying dividing lines between urban v rural, towns v cities.
"It is about unleashing growth and making sure every individual has the chance to thrive. Liz has a plan to create an aspiration nation based on equality of opportunity, and will deliver it in a conservative way.""It is about unleashing growth and making sure every individual has the chance to thrive. Liz has a plan to create an aspiration nation based on equality of opportunity, and will deliver it in a conservative way."
The comments were made as part of Mr Sunak's campaign bid to replace Boris Johnson as Conservative leader and prime minister.The comments were made as part of Mr Sunak's campaign bid to replace Boris Johnson as Conservative leader and prime minister.
He is competing against Ms Truss, who polls suggest is more popular among Conservative members.He is competing against Ms Truss, who polls suggest is more popular among Conservative members.