CHANCELLOR Rishi Sunak has defended council funding and “Levelling Up” cash for Teesside on a visit to the streets of Yarm. 

The Richmond MP hit the High Street on Thursday afternoon – popping his head around the door at Diana Kaye’s Florist and Strickland and Holt before a meeting in Yarm Town Hall. 

The 18th Century venue was a beneficiary of recently announced cash from the Levelling Up Fund – with the £20m grant also going towards an overhaul at Preston Park, new toilets in Yarm, and improved cycle links.

But the snub of another eight figure bid to overhaul Billingham’s Western Precinct has angered some Teesside politicians. 

The move was branded “disgraceful” by Stockton Council’s leader Bob Cook last month. 

Asked why more deprived Billingham hadn’t got the money this time around, Mr Sunak said more than 100 different places had received cash from the pot.

And he added the North East had received the “third highest per capita” allocation out of all areas in the UK. 

Mr Sunak said: “The North East did well – bids are assessed on a number of different criteria and those criteria are applied consistently across the board. 

“The good news for places that missed out is they will get feedback on their bids – that has already happened, or will happen, and they will get a chance to bid again because there is another round of the Levelling Up Fund opening in the Spring.”

The Chancellor also pointed to other pots of money distributed across Teesside as evidence of things it was doing in the region.

Mr Sunak added: “Thornaby and Middlesbrough have received Towns Fund funding in the past – Darlington Station is being upgraded and the Freeport. 

“There is lots going on in Teesside which is good for everyone in the broader area.”

Bishop Auckland, Stockton South, Sunderland and two projects in Newcastle were successful in the first round of the £4.8bn “Levelling Up Fund”.

Billingham also lost out in its bid to the Towns Fund last year – with Thornaby (£23.9m) and Middlesbrough (£21.9m) getting the thumbs up from the Government. 

Stockton Council chiefs have confirmed they will work to lodge a “rock solid” bid for Billingham once again next year. 

Authority chiefs have repeatedly pointed to the loss of more than £70m to the council’s coffers since 2010 – and the lack of certainty over long term funding settlements to help it plan ahead. 

Asked about funding struggles, Mr Sunak said his spending review and budget saw government and public spending “growing at healthy and generous rates”.

“No-one can say there isn’t plenty of money going into public services in the next couple of years,” he added.

“For councils in particular, there will be over £1bn a year of fresh grant funding which will mean they will see quite healthy rises in “core spending power” which is the metric we use.

“For Stockton, this year their core spending power has grown about 4.5 per cent – which is definitely above the national average.

“That is helping with the pressures they’re facing.”

The newly announced Freeport has been a hot topic in Teesside’s political climate of late. 

Thousands of jobs have been promised to be spawned from the new free trade zones.

But the Office for Budget Responsibility (OBR) expressed its doubts about their effectiveness in a recent report. 

It stated: “Given historical and international evidence, we have assumed that the main effect of the freeports will be to alter the location rather than the volume of economic activity.”

Officials at the Tees Valley Combined Authority (TVCA) have sent a case to the government to fund the huge A19 Tees Crossing – arguing it’s needed to bolster the fortunes of Teesworks. 

The Local Democracy Reporting Service quizzed the Chancellor about funding the £500m Tees Crossing over the A19 – given how it linked to the fortunes of the newly created Freeport. 

Mr Sunak said the Freeport was “already working” in bringing investment and jobs – pointing to the upcoming GE plant. 

He added: “Also, the UK Infrastructure Bank, which is the new organisation I set up earlier this year, made its first investment in the Freeport for offshore wind – an £100m investment. 

“And by the way the Freeport actually comes with capital funding for local infrastructure improvements as well – tribute to Ben, it’s going brilliantly and is a great example of what this policy can deliver.”