Norfolk businesses are in danger of missing out on money through the government's flagship levelling up fund, a new report has warned.
Experts from the University of East Anglia say that the criteria used by ministers to allocate cash is currently too difficult to meet.
Under the government's levelling up policy, the Department for Levelling Up, Housing and Communities, headed by Michael Gove, is set to devolve more powers to councils - with Norfolk County Council having agreed in principle to a county deal with extra powers and an elected leader.
But researchers at the university have cast doubt on whether local businesses will benefit from councils having, on paper, more freedom to provide subsidies to firms.
READ MORE: Norfolk County Council devolution deal talks held with Gove
The UEA study found most local authorities will struggle to demonstrate they meet the necessary criteria for awarding subsidies.
Lead researcher Prof Andreas Stephan, from UEA’s School of Law, said: “It is promised that these measures will deliver more jobs, better services and more opportunities for local people – which would in turn help grow the economy and ‘level up’ areas of the UK.
"Local targeted subsidies are key to achieving this. The devolution of spending power could reduce regional inequality if public authorities have the freedom and confidence to award beneficial subsidies that best serve their cities and regions.
"To ensure subsidies benefit the local economy, a new system has been introduced that requires authorities to ensure their spending decisions meet a set of criteria.
"But this research shows that most authorities will likely struggle to demonstrate they meet the criteria - making it less likely good subsidies will be offered to local businesses."
The researchers say communities would benefit if the government expanded the scope of categories of subsidies automatically allowed.
The New Anglia Local Enterprise Partnership. Norfolk County Council and the various city, borough and district councils all provide various grants and support to businesses.
The DLUHC did not respond to a request for comment.
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