The London Chamber of Commerce and Industry (LCCI) has raised concerns over a lack of funding being allocated to youth charities and groups in the capital through the government’s £300m Youth Investment Fund.

In the first round of allocations earlier this year none of the 43 charities and youth organisations that benefited from £90m worth of capital building funding were based in London.

A total of £300m is available through the Fund to build or refurbish 300 youth facilities, targeting areas in need of improved support for young people.

But only locations in two London boroughs, Tower Hamlets and Barking & Dagenham, are among the 45 areas selected based on need for funding.

The LCCI is appealing to charities minister Stuart Andrew to ensure that areas in need of improved youth support in the capital do not miss out on further allocations.

“During the double whammy of COVID-19 pandemic and the cost-of-living crisis, too many of London’s young people suffered poverty of income as household rents shot up and access to food became difficult,” it said.

“According to the Greater London Authority, over 600,000 of London's children live in poverty. Lack of youth centres in the capital means that young adults may not have access to the life-changing opportunities necessary to career growth that young adults elsewhere in the UK can receive. This is turn, will exacerbate the issue of damaging skills shortages that stunt London business growth.”

Social Investment Business along with National Youth Agency (NYA), Key Fund and Resonance is delivering the fund. Applications are assessed by a grant panel and evaluated by young assessors recruited by the NYA.

“We urge the Government to reconsider the Youth Investment funding decision and to ensure that London receives the help it needs, along with the rest of the country, to ensure all young Londoners have the best start in life,” added LCCI chief executive Richard Burge.

“Whilst LCCI strongly supports the government’s levelling up agenda, this must mean levelling up London as well. We need to support young people in our capital to achieve their full potential.”

The initial £90m worth of capital funding included more than £40m to youth charity Onside to improve centres in Bristol, Crewe, Preston, Grimsby and Salford. Other charities to benefit included Nottingham Mencap, Sunderland based Lambton Street Youth and Community Hub and Birmingham based Marine Society and Sea Cadets.

It was announced last month that applications for funding through the Fund will close in June after being “heavily oversubscribed” and as projects must be completed by the end of March 2025.

“Given the remaining life of the grant programme and the deadline for spending the funds and completing projects, the Youth Investment Fund will soon only accept bids that are seeking to deliver less complex, smaller projects that can be fully completed by 31 March 2025,” said the announcement.

A Department of Culture, Media and Sport spokesperson said: “The Youth Investment Fund is paving the way for up to 300 youth facilities to be built or refurbished over the next two years in areas where need is high and existing youth provision is low, including in London.

“The government believes every young person deserves the best start in life and the Youth Investment Fund will provide access to the kinds of life-changing activities which expand their horizons and allow them to develop vital life skills."

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