Boris Johnson’s promises to level up parts of the country could be abandoned after he leaves office as rising costs and inflation threaten key projects, experts have warned.

Councils could have to hand back money to the government, scale back projects, or fund the shortfall out of dwindling budgets amid fears schemes could become “undeliverable”.

Neil O’Brien, a former levelling-up minister and Johnson’s adviser on the issue, warned that it was time to “face up to reality” over the policy.

The Tory MP for Harborough told The Times that he fears projects previously considered value for money may no longer be able to go ahead because of rising costs.

He said: “Inflation will make a lot of projects less viable, because construction-cost inflation is even higher than general price inflation.

“A lot of councils will be looking at de-scoping projects or dropping elements. But short-term, ironically, it may reduce spending and slow needed progress, because councils may sit on their hands while they rework their projects.”

The Department for Levelling Up, Housing and Communities said it was ready to speak to councils that may have concerns.

The Levelling Up cash boosts aim to transform the UK by spreading prospects and prosperity to every corner as part of the ambitious proposals to close its long-standing geographical gaps by 2030.

The UK Government has committed £4.8billion to its Levelling Up Fund, which allows local authorities to bid for money for “high-value local infrastructure”.

Some £1.7 billion has already been awarded - including £20million for the new Aberdeen Market on Union Street - and more is to be announced in the second round later this year.

The new marketplace will create a vibrant retail area, promoting local produce and goods to shine a light on local makers and producers alongside continental-style delis, cafes and eateries.

There is no suggestion that the project is currently under threat - and earlier this month, Aberdeen City Council also submitted a £20million bid for plans to rejuvenate the beach area to that second round of funding.

The plans for the beachfront include a pier, a playpark and other leisure facilities, attractive streetscaping, increased usability for the Beach Ballroom, and a state-of-the-art sports area.

The elements which are part of the Levelling Up Fund 2 bid include an urban park (including the new playpark, sports area, and a pump track), an events field, a gateway building, a hub building and canopy features, and a pedestrian ‘spine’.

The Levelling Up Fund 2 operates on a competitive basis, with a maximum of one project being funded per Westminster constituency and one strategic transport project per local authority.

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