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There is a fund to create jobs in the poorest areas, and Labour has quietly gutted it. This is what betrayal looks like | Larry Elliott

11 December 2025 at 06:00

It’s a scandal laid bare. A stark new report highlights the price paid in Britain’s former industrial heartlands for this silent piece of ministerial vandalism

The Welsh valleys have some of the highest numbers of people claiming incapacity benefits in the whole of Britain. In Abertillery, Maesteg and Merthyr Tydfil, getting on for a quarter of the working-age population is not employed – in large part due to long-term ill-health. If the government was serious about reducing the growing welfare bill, it would be starting here and in the other parts of the country blighted by deindustrialisation and poverty. It would identify the parts of the country most in need – Wales, Scotland and large swaths of northern England – and love-bomb them.

Yet instead of devoting more money to regional economic development, ministers are doing the opposite. In one of its less-publicised policy moves, Labour has quietly gutted the fund designed to create jobs, a scheme inherited from the Conservatives. The silent demolition job on regional policy is laid bare in a new report by Steve Fothergill, national director of the Industrial Communities Alliance, an umbrella group for the local authorities worst affected by the hollowing out of Britain’s industrial base and the closure of the coalfields.

Larry Elliott is a Guardian columnist

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Β© Photograph: Sam Jones/Alamy

Β© Photograph: Sam Jones/Alamy

Β© Photograph: Sam Jones/Alamy

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