Investment zones will be funded with ‘new' Treasury cash, and not existing local government spending commitments, levelling up secretary Simon Clarke has told MPs.

Amid fears councils face further austerity to pay for the failed ‘Trussonomics' experiment, MPs this week sought assurances that flagship investment zones – which have survived government policy U-turns – will not be paid for from existing pots such as the £4.8bn Levelling Up Fund.