Levelling up: Sheffield and Wolverhampton chosen for regeneration plans

Sheffield and Wolverhampton have been chosen as the first places to benefit from government regeneration funding.

Ministers want to help transform derelict areas of 20 towns and cities in England, with new housing and jobs.

The government says further details will be set out in its long-awaited blueprint to "level up" economic opportunities around the UK.

But Labour said the announcement was "recycled money" and would not do enough to boost poorer areas.

The government's levelling up policy paper, to be published next week, is also set to outline plans to expand devolution in England.

Cabinet sources have told the BBC some government figures do not think the plans are ambitious enough, with concerns the proposals repackage certain policies that have already been announced.

The government regeneration of the 20 locations is being funded by part of a £1.5bn fund announced by the chancellor at the last Budget in October.

The money, which will be made available from April, will be allocated to councils in England to pay for new infrastructure on brownfield land - land that has previously been developed.

The government is yet to confirm which other areas, other than Sheffield and Wolverhampton, will be prioritised for the cash.

Writing in the Mail on Sunday, Levelling Up Secretary Michael Gove said the plans would help "transform" these areas, as well as relieving pressure on green fields and infrastructure in the South East.

"While talent is spread equally across the UK, opportunity is not. Our country is a success story, but not everyone is sharing in it," he wrote.

"That has to change. We need to tackle, and reverse, the inequality that is limiting so many horizons, and which also harms our economy."

"The gap between much of the South East and the rest of the country - in productivity, health outcomes, wages, school results and job opportunities - must be closed."

However, Labour's shadow levelling up secretary Lisa Nandy said the brownfield funding announcement was "recycled money" that would simply give "a bit of a refund in a few places" of investment lost under the Conservatives.

Speaking on BBC One's Sunday Morning programme, she added that the announcement "completely misses the point," adding that people needed "good jobs and wages" to ensure levelling up was a success.

The party has set out its own five-point plan for levelling up, including better broadband for towns and villages, action to tackle anti-social behaviour in city centres, and more affordable housing.

Meanwhile, more than 100 places outside London will benefit from extra funding for arts and culture from 2023, the Department of Digital, Culture, Media and Sport (DCMS) said.

Arts Council England will identify the locations, and DCMS said 100% of the additional funding recently agreed for the group would go to supporting culture and creativity outside of London.

Announcing his Spending Review to parliament in October, Chancellor Rishi Sunak said more than £850m was being allocated to cultural and heritage infrastructure.