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Introduction: The Central Paradox of ‘Levelling Up’
Is the UK truly committed to “levelling up,” or are we simply reinforcing the very disparities we claim to be dismantling? The allocation of the Global Talent Fund (GTF) stands as a recent and compelling illustration of a much larger, systemic issue: persistent regional inequality. Far from being an isolated administrative oversight, the GTF decision serves as a potent case study, revealing deeper patterns of uneven investment and opportunity distribution that disproportionately impact regions such as the North of England, and specifically, Yorkshire. This report will move beyond initial observations to provide a robust, evidence-based critique, demonstrating how the GTF’s distribution appears to contradict the stated aims of the government’s “levelling up” agenda, thereby establishing a critical tension that demands thorough examination.
The United Kingdom’s Global Talent Fund (GTF), a £54 million initiative designed to attract world-leading researchers, has inadvertently highlighted and potentially exacerbated existing regional inequalities within the UK. While ostensibly aimed at boosting national prosperity, the fund’s allocation to twelve institutions reveals a significant geographic concentration, predominantly favoring established research hubs in London and the South East. This distribution contrasts sharply with the government’s stated “levelling up” agenda, which seeks to reduce economic disparities across the country.
This report critically examines the GTF’s specifics, including its selection criteria, which appear to reward existing research strength rather than fostering new capacity in underserved regions. A detailed analysis of universities in the North of England, particularly within Yorkshire, demonstrates their substantial and often under-recognized economic and academic contributions. The complete exclusion of Northern institutions from the GTF, despite this proven impact, suggests a misalignment between funding mechanisms and regional development goals. Furthermore, a review of broader public and private investment trends reveals that the “levelling up” agenda has, in practice, led to sustained underinvestment in the North, with the spending gap between the North and London doubling between 2019 and 2021. This report, therefore, argues that genuine regional development requires a fundamental paradigm shift towards a truly decentralized, transparent, and regionally balanced funding model that empowers local institutions and economies.
A Microcosm of a Macro Problem
The allocation of the UK’s Global Talent Fund (GTF) stands as a recent and compelling illustration of a much larger, systemic issue within UK policy: persistent regional inequality. Far from being an isolated administrative oversight, the GTF decision serves as a potent case study, revealing deeper patterns of uneven investment and opportunity distribution that disproportionately impact regions such as the North of England and, specifically, Yorkshire. This report will move beyond initial observations to provide a robust, evidence-based critique, demonstrating how the GTF’s distribution appears to contradict the stated aims of the government’s “levelling up” agenda, thereby establishing a critical tension that demands thorough examination.
The Raw Data of Disparity: Unpacking the GTF
This section meticulously presents the foundational data concerning the GTF, contrasting the selected institutions with the significant contributions of excluded Northern and Yorkshire universities. The evidence presented systematically challenges any assertion that the exclusions were based purely on academic or economic merit, laying the groundwork for a critical assessment of the fund’s allocation.
Global Talent Fund (GTF) Specifics: The Chosen Few
The Global Talent Fund, totaling £117 million, was established with the stated broad objective of attracting world-leading researchers. However, the distribution of this fund tells a different story. The bulk of the funding was allocated to a small number of institutions, with a significant geographic concentration in London and the South East. This allocation is a powerful symbol of a wider issue. It is a financial blueprint of a country divided, where opportunity gravitates towards a single hub, leaving the “spokes” to fend for themselves.
The allocation of this fund to only twelve institutions has drawn significant criticism. An analysis by the Northern Powerhouse Partnership revealed that several Northern universities, including Leeds, Manchester, Sheffield, and Durham, met the government’s own criteria for international funding and international staff, yet none were selected for the fund (Northern Powerhouse Partnership, 2025). This suggests that the criteria may have been applied in a way that inherently favored the status quo, rewarding institutions that already have a significant concentration of talent rather than fostering new growth. The government’s own correspondence confirmed that “institutions based in the north of England” were not yielded by their quantitative assessment within the funding limits, despite the goal of being “inclusive” of all four UK nations (House of Commons, 2025).
The Broader Context of Regional Economic Imbalance
The GTF’s allocation pattern is not an isolated incident but a symptom of a deeper, systemic issue. Data from the Office for National Statistics (ONS) reveals that London and the South East are consistently the only UK regions with a Gross Value Added (GVA) per head above the national average (ONS, 2018). The House of Commons Library found that in 2018, productivity in the Yorkshire and the Humber region was 17% below the UK average (House of Commons Library, 2020), a figure that underscores the deep-seated economic disparities. A separate analysis by the IPPR North think tank concluded that the North of England is suffering from a “triple whammy of low investment, low productivity, and low pay,” which is holding back the entire country (IPPR North, 2025).
“Levelling Up”: Rhetoric vs. Reality
The GTF allocation directly contradicts the government’s much-vaunted “levelling up” agenda. This flagship policy, intended to reduce regional inequalities, has been met with skepticism and criticism from leading think tanks. Research by IPPR North shows that despite the rhetoric, public spending per person in the North has not only remained lower than the England-wide average but has also grown at a slower rate since 2019 (IPPR North, 2022). The spending gap between the North and London doubled over this period, growing from £1,513 per person to £3,008 per person (IPPR North, 2022). This evidence suggests that central government policy, rather than reducing regional divides, may be inadvertently reinforcing them.
The Economic and Social Contribution of Overlooked Regions
Northern universities, despite their exclusion from the GTF, are not economic bystanders. They are engines of regional growth. A report from Universities UK highlights the substantial economic impact of universities outside of London, with institutions in Yorkshire and the Humber alone supporting 74,000 jobs and contributing £9 billion to the economy. This is not a matter of charity; it is a matter of strategic economic investment. Ignoring these contributions is a missed opportunity to foster distributed excellence and national resilience.
The Wider Context of Systemic Inequality
The GTF is a symptom, not the disease. The unequal distribution of this fund is a microcosm of a much larger problem. Reports from organizations like Grant Thornton and the Institute for Fiscal Studies show a persistent and widening gap in economic output, health outcomes, and public funding between the North and South of England. The reality is that the “levelling up” agenda has made “glacial” progress, and on many key metrics, the UK has gone into reverse. The system is rigged against underperforming areas, with funding mechanisms often favoring projects with the highest value-for-money metrics, which are almost always found in more prosperous regions. This creates a vicious cycle: underfunded regions struggle, making them less competitive for future funding, and so the cycle continues.
A Call for a Paradigm Shift
This pattern of centralized investment is not inevitable. It is a choice. We must challenge the notion that all prosperity must emanate from a single, dominant hub. The UK’s productivity gap is among the most severe in the developed world, a problem intrinsically linked to our extreme centralization. To truly “level up,” we must re-evaluate our entire approach. We must empower local institutions, foster distributed excellence, and strategically invest in areas with high potential. The future prosperity of the entire United Kingdom depends on its ability to leverage the diverse strengths and innovation potential across all its regions, not just the capital.
Conclusion and Recommendations
The UK’s Global Talent Fund, while a well-intentioned initiative, serves as a powerful case study for the persistent regional inequality ingrained within the UK’s policy-making and funding structures. The exclusion of highly-qualified Northern institutions, in a context of already significant regional economic disparity and ineffective “levelling up” policies, suggests a fundamental flaw in the current approach. A genuine commitment to leveling up must involve more than just rhetoric; it requires a strategic, decentralized shift in power and investment away from the centralized London hub.
Recommendations:
- Introduce a Decentralized Funding Mandate: Implement a mandate for major funding bodies, such as UK Research and Innovation (UKRI), to ensure a more equitable geographic distribution of funds, prioritizing regions with the greatest need for research investment and talent attraction.
- Rethink Funding Criteria: Redesign funding criteria to reward potential and strategic impact in under-served regions, rather than simply reinforcing existing concentrations of wealth and research power. This would involve a shift away from metrics that inherently disadvantage larger, but less-resourced, regional institutions.
- Empower Regional Bodies: Grant greater autonomy and funding to regional bodies and combined authorities, allowing them to make strategic investment decisions that align with local economic priorities and strengths.
References
- House of Commons (2025). Correspondence to the Committee from Minister of State, relating to Global Talent Visa. Available at: https://committees.parliament.uk/publications/49085/documents/258612/default/
- House of Commons Library (2020). How big are regional economic inequalities in the UK?. Available at: https://commonslibrary.parliament.uk/how-big-are-regional-economic-inequalities-in-the-uk/
- IPPR North (2022). Leading think tank: “Levelling up was business as usual, but that has to change”. Available at: https://www.ippr.org/media-office/leading-think-tank-levelling-up-was-business-as-usual-but-that-has-to-change
- IPPR North (2025). The State of the North: Has Levelling Up Done Anything?. Available at: https://politicsuk.com/the-state-of-the-north-has-levelling-up-done-anything/
- Northern Powerhouse Partnership (2025). Global Talent Fund – Concern over exclusion of Northern Universities. Available at: https://www.northernpowerhousepartnership.co.uk/global-talent-fund-concern-over-exclusion-of-northern-universities/
- ONS (2018). Regional gross value added (income approach), UK: 1997 to 2015. Available at: https://www.ons.gov.uk/economy/grossvalueaddedgva/bulletins/regionalgrossvalueaddedincomeapproach/december2016
- An Analysis of the UK Global Talent Fund: Implications for Regional Inequality with a Deep Dive into Yorkshire’s Academic Contributions. Uploaded Document.
- The UK Global Talent Fund: A Microcosm of Entrenched Regional Inequality. Uploaded Document.
- Grant Thornton. “Regional inequalities in England weakening councils’ financial resilience.” Available from: https://www.grantthornton.co.uk/news-centre/regional-inequalities-in-england-weakening-councils-financial-resilience/
- House of Lords Library. “Higher education: Contribution to the economy and levelling up.” Available from: https://lordslibrary.parliament.uk/higher-education-contribution-to-the-economy-and-levelling-up/
- Institute for Government. “Levelling up: the IfG view on the white paper.” Available from: https://www.instituteforgovernment.org.uk/sites/default/files/publications/levelling-up-white-paper-ifg-view.pdf
- Institute for Fiscal Studies. “How do the last five years measure up on levelling up?” Available from: https://ifs.org.uk/publications/how-do-last-five-years-measure-levelling
- Universities UK. “How do universities grow the economy?” Available from: https://www.universitiesuk.ac.uk/what-we-do/policy-and-research/publications/features/impact-universities-numbers-2023/how-do-universities-grow-economy