Funding for Levelling Up
Housing, Communities and Local Government Committee
Closed
Inquiry
This inquiry will look at the funds available for levelling-up and how effectively resources are directed to those areas most in need. The Committee’s inquiry will examine questions around the allocation of levelling-up resources and the aim, size and focus of the many different funds available. The inquiry will also …
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14
Recommendations
20
Conclusions
1
Report
5
Oral sessions
32
Letters
5
Events
Activity timeline 44 events
8 Nov
2023
2023
26 Oct
2023
2023
21 Sep
2023
2023
11 Jul
2023
2023
26 May
2023
2023
Report published
27 Apr
2023
2023
25 Apr
2023
2023
29 Mar
2023
2023
14 Mar
2023
2023
14 Mar
2023
2023
21 Feb
2023
2023
Oral evidence sessions 5 sessions
23 Jan 2023
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Oral Evidence
Dehenna Davison · Department for Levelling Up, Housing and Communities
Jessica Blakely · Department for Levelling Up, Housing and Communities
12 Dec 2022
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Oral Evidence
Andy Burnham · Greater Manchester Combined Authority
Andy Street · Mayor of the West Midlands
Dominic McCullough · Northern Ireland Department of Finance
Laura McDonald · Northern Ireland Department of Finance
Maeve Hamilton · Northern Ireland Department for the Economy
Tony Simpson · Northern Ireland Department of Finance
Tracy Brabin MP · Mayor of West Yorkshire
Vaughan Gething MS · Welsh Government
28 Nov 2022
View on parliament.uk
Oral Evidence
Councillor Kevin Bentley · Local Government Association
Geoff Raw · Brighton and Hove City Council
Georgina Blakemore · Epping Forest District Council
John Swinney MSP · Scottish Government
Matt O'Neill · Barnsley Council
14 Nov 2022
View on parliament.uk
Oral Evidence
Adam Hawksbee · Onward
James Morrison · Robert Gordon University
Paul Swinney · Centre for Cities
Professor Steve Fothergill · Sheffield Hallam University
Reports 1 report · click to expand
| Title | HC No. | Published | Items | Response |
|---|---|---|---|---|
| Sixth Report - Funding for Levelling Up | HC 744 | 26 May 2023 | 34 | Responded |
Recommendations & Conclusions
19 results
4
Recommendation
Accepted
Sixth Report - Funding for Levelli…
Prioritise flexible revenue funding for local authorities and reduce bid-based allocations.
As a starting principle, local authorities who most require prioritising within the Levelling Up policy should be allocated money through revenue to achieve objectives that are in line with their local circumstances and need, with the appropriate monitoring and expenditure …
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Government Response
The government highlights its published plan for simplifying the funding landscape and its commitment to launch a Funding Simplification Doctrine in 2024, which will encourage allocative approaches over competitive bids where suitable. It cites the UKSPF as a non-competitive fund with a mix of revenue and capital funding, empowering local leaders with flexibility.
Ministry of Housing, Communities and Local Government
View details
5
Conclusion
Accepted
Sixth Report - Funding for Levelli…
Limited progress achieved simplifying Levelling Up funding streams and competitive bidding requirements.
The Levelling Up White Paper committed the Department to simplify funding streams and reducing the requirements to access competitive bidding. Despite this, we have seen limited evidence that any progress has been made on these objectives to date. Furthermore, the …
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Government Response
The government states it published a plan on 4 July 2023 for simplifying funding and will launch a Funding Simplification Doctrine in 2024 to guide appropriate distribution methodologies. It also highlights the UK Shared Prosperity Fund which provides formula-based allocation rather than competitive bidding.
Ministry of Housing, Communities and Local Government
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6
Conclusion
Accepted
Sixth Report - Funding for Levelli…
Competitive bidding processes are resource-intensive, costly, and disadvantage smaller local authorities.
It was made clear by our witnesses that competitive bidding is a resource intensive and costly activity. This can create barriers for stakeholders and communities in need of funding. Whilst limited funding was provided for some local authorities in the …
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Government Response
The government outlines its plan for simplifying the funding landscape, published on 4 July 2023, and commits to launching a Funding Simplification Doctrine in 2024. This doctrine will assess the most suitable distribution methodology, encouraging allocative approaches where appropriate to minimize demands on local authorities.
Ministry of Housing, Communities and Local Government
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8
Conclusion
Accepted
Sixth Report - Funding for Levelli…
DLUHC lacks a consistent, department-wide process for providing competitive bid feedback.
We heard evidence which brought into question the extent of support provided to applicants or unsuccessful applicants by DLUHC. There is a wide gap in perception between the quality of feedback the DLUHC said it had provided and the quality …
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Government Response
The government confirms it provided feedback to unsuccessful applicants in both rounds, improving the process in round two by providing detailed written feedback based on lessons learned from round one. They note receiving positive feedback on the round two process.
Ministry of Housing, Communities and Local Government
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11
Recommendation
Accepted
Sixth Report - Funding for Levelli…
Encourage collaboration between communities and local authorities in competitive bidding processes.
The nature of competitive bidding can result in resentment between communities and similar neighbouring authorities across the country. Communities and local 38 Funding for Levelling Up authorities should be encouraged to work together, and the Government should be mindful of …
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Government Response
The government acknowledges the administrative burden of competitive bidding and states the upcoming funding simplification doctrine will balance its approach. It commits to working with local authorities to ensure fair and transparent distribution of competitive funding and to encouraging collaboration, citing existing capacity grants and provisions for joint bids in the Levelling Up Fund.
Ministry of Housing, Communities and Local Government
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13
Recommendation
Accepted
Sixth Report - Funding for Levelli…
Prohibit DLUHC from introducing additional metrics, or mandate public communication of changes.
Throughout all future competitive bidding processes, the Government must avoid introducing additional metrics for success once an application process has closed. If, for any reason, this becomes unavoidable, the DLUHC must communicate this change via official and public channels of …
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Government Response
The government refutes the claim of introducing new metrics, stating its decision-making framework was published at the outset. It adds that it has provided £65 million in additional funding to support local authorities with project development, including adapting to inflation impacts.
Ministry of Housing, Communities and Local Government
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17
Recommendation
Accepted
Sixth Report - Funding for Levelli…
Require DLUHC to utilise local government data expertise and ensure clear data sources.
The DLUHC should not seek to fix something which is not broken. Rather than outsourcing the collection of new data sets, the Department should have called on the expertise of bodies such as the Local Government Association and offices within …
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Government Response
The government defends its data collection approach, explaining that its chosen indicators align with Levelling Up Fund interventions and that data sources are primarily government statistical releases, with links provided in published methodology notes. It states it chose to gather data from original sources rather than relying on aggregated data.
Ministry of Housing, Communities and Local Government
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18
Conclusion
Accepted
Sixth Report - Funding for Levelli…
DLUHC lacks sufficient data on levelling up expenditure to measure policy success.
We are concerned about the DLUHC’s lack of sufficient data on all aspects relating to levelling up. The Department has acknowledged that it lacks data of sufficient quality about Government department’s expenditure on the full range of levelling up funds. …
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Government Response
The government acknowledges data concerns but states good progress is being made on metrics, with new data publicly available. They also note the Levelling Up and Regeneration Bill will require annual reports and DLUHC is working to publish subnational expenditure data, with an annual report on devolution due by March 2024.
Ministry of Housing, Communities and Local Government
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19
Recommendation
Accepted
Sixth Report - Funding for Levelli…
Publish DLUHC departmental and combined authority expenditure data for public monitoring.
One of our core tasks is to monitor the policy of the DLUHC and without sufficient data we are limited in our ability to do so. We are concerned that the lack of accessible data was not foreseen or resolved …
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Government Response
The government outlines ongoing efforts to make data publicly available, including through the Subnational Indicators Explorer and a subnational expenditure project. It also states that an Annual Report on Devolution will be published by March 2024, and the Levelling Up and Regeneration Bill will mandate annual progress reports.
Ministry of Housing, Communities and Local Government
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20
Conclusion
Accepted
Sixth Report - Funding for Levelli…
DLUHC's Spatial Data Unit's work and future plans remain unclear.
The DLUHC’s solution to its lack of data appears to have been the creation of the ‘Spatial Data Unit’ (SDU). The SDU was set up over a year ago and since then we have sought to understand the work of …
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Government Response
The government clarifies that the Spatial Data Unit (SDU) is transforming data use for place-based decision-making and is already producing granular data, such as LSOA Gross Value Added (GVA) and improved R&D expenditure estimates. The SDU is also supporting the Subnational Indicators Explorer, which is updated quarterly.
Ministry of Housing, Communities and Local Government
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21
Recommendation
Accepted
Sixth Report - Funding for Levelli…
Publish annual data production plans and availability timelines for the SDU
The delay and lack of information regarding what the SDU is working on, what the Unit intends to produce and when these data sets will be available, is unsatisfactory. The DLUHC, via the SDU, must make clear at the start …
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Government Response
The government outlines the Spatial Data Unit's (SDU) ongoing work to transform data use, including subnational expenditure projects, partnerships with the ONS for local statistics, and the development of public tools like the Subnational Indicators Explorer, updated quarterly. It highlights various published data outputs and collaborative efforts.
Ministry of Housing, Communities and Local Government
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22
Conclusion
Accepted
Sixth Report - Funding for Levelli…
Clarify impact of Treasury's capital expenditure changes on future DLUHC projects
According to the Financial Times, concerns about the DLUHC’s ability to deliver ‘value for money’ have been raised by the Treasury. Despite DLUHC’s efforts to reassure us, the Treasury’s decision to remove DLUHC’s ability to sign off on capital expenditure …
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Government Response
The government clarifies that the change in capital expenditure sign-off only relates to new projects and has no implications for DLUHC's budgets, policy objectives, or the delivery of Levelling Up. They cite recent funding announcements as evidence of continued investment.
Ministry of Housing, Communities and Local Government
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27
Conclusion
Accepted
Sixth Report - Funding for Levelli…
DLUHC's consultation with Devolved Governments on levelling up funding proved unsatisfactory
The DLUHC has told us that it consulted with the Devolved Governments on the creation, compatibility, and implementation of the levelling up funds. However, we have heard from the Scottish and Welsh Governments, and officials from the Northern Ireland Executive, …
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Government Response
The government acknowledges shared goals with devolved administrations and outlines its existing close working relationship and consultation efforts across various levelling up initiatives, including joint Freeports, seeking advice on the Levelling Up Fund, and engaging on UKSPF interventions.
Ministry of Housing, Communities and Local Government
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28
Conclusion
Accepted
Sixth Report - Funding for Levelli…
Levelling Up funding often incompatible with devolved policy and inefficiently distributed
We have also heard from the Scottish and Welsh Governments, and officials from the Northern Ireland Executive, that levelling up funding was not always compatible with devolved policy and that the method of distribution was not appropriate. The Multiply fund …
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Government Response
The government acknowledges shared goals with devolved administrations and asserts they are working closely across various levelling up areas, citing examples like joint Freeports, and consultations on the Levelling Up Fund and UKSPF to agree bespoke interventions and align with priorities. They do not directly address the specific "wasteful" criticism of the Multiply fund.
Ministry of Housing, Communities and Local Government
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29
Recommendation
Accepted
Sixth Report - Funding for Levelli…
Ensure ongoing, detailed, and sufficient DLUHC engagement with Devolved Governments on funding distribution
Where the DLUHC is seeking to provide funding in [policy] areas that are generally understood to be devolved, it is critical that the Department works hand in glove with the Devolved Governments. As such, through good communication and close collaboration, …
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Government Response
The government describes its existing and past close collaboration with devolved administrations on Levelling Up, citing examples like joint Freeport announcements, seeking input on the Levelling Up Fund, and developing bespoke interventions for the UKSPF, asserting it is already working closely across the UK.
Ministry of Housing, Communities and Local Government
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30
Conclusion
Accepted
Sixth Report - Funding for Levelli…
DLUHC consultation parameters incompatible with Northern Ireland Act and existing structures
The lack of consideration for the circumstances in which the Executive and its Officials in Northern Ireland operate is of even greater concern to us and speaks to an on- going theme we found throughout this inquiry regarding the extent …
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Government Response
The government acknowledges the importance of Section 75 considerations for Northern Ireland. They state that for UKSPF, applicants must describe impacts and collect data on protected characteristics, and they will further embed these considerations. For the Levelling Up Fund, they explain that Memorandums of Understanding were used to ensure compliance with Section 75 principles and allow official engagement without legal risk.
Ministry of Housing, Communities and Local Government
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31
Recommendation
Accepted
Sixth Report - Funding for Levelli…
Engage with Northern Ireland officials through existing structures, ensuring Section 75 compatibility.
In the future, the DLUHC must make sure that its engagement with officials in Northern Ireland is compatible with section 75 of the 1998 Northern Ireland Act, so 42 Funding for Levelling Up that in the absence of an Executive, …
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Government Response
The government outlines existing measures to ensure engagement with Northern Ireland officials is compatible with Section 75 of the 1998 Northern Ireland Act, including requiring UKSPF applicants to describe project impact and using MoUs for the Levelling Up Fund, while acknowledging the challenge of a non-functioning Executive.
Ministry of Housing, Communities and Local Government
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32
Conclusion
Accepted
Sixth Report - Funding for Levelli…
Levelling Up is another short-term local growth initiative hindering sustained development.
The Government’s flagship Levelling Up policy is one in a long line of local growth initiatives. The National Audit Office reported that since 2010 there has been the repeated introduction of ‘new’ local growth policies. The stop-start character of local …
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Government Response
The government acknowledges the historic stop-start approach to local growth and states that Levelling Up is a long-term programme, with the Levelling Up and Regeneration Bill enabling missions to continue beyond 2030. It also refers to a recently published simplification plan to improve the current funding system.
Ministry of Housing, Communities and Local Government
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34
Recommendation
Accepted
Sixth Report - Funding for Levelli…
Adopt a sustained, long-term approach to Levelling Up with secure, ongoing funding.
We note the significant cross-party consensus there appears to be for the challenges that the Levelling Up policy is seeking to solve. We recommend that future Governments take a more sustained and long-term approach to levelling up matched by ongoing …
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Government Response
The government states that the Levelling Up policy is already a long-term program, with missions set until 2030 and provisions for continuation beyond. They also reference a simplification plan to streamline funding and reduce duplication, claiming existing efforts address the recommendation.
Ministry of Housing, Communities and Local Government
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Correspondence 32 letters
8 Nov 2023
To committee
Letter from the Secretary of State concerning the Committee’s report into funding for levelling up, dated 13 October 2023
Parliament page
21 Sep 2023
To committee
Letter from the Chair to the Secretary of State dated 19 September 2023 concerning the Government response to the Committee's report into Funding for Levelling Up
Parliament page
11 Jul 2023
To committee
Letter from the Minister for Levelling Up to the Chair dated 5 July 2023 concerning the funding landscape for local authorities
Parliament page
27 Apr 2023
To committee
Letter from the Minister for Levelling Up to the Chair dated 24 April 2023 concerning DLUHC capital delegation with the Treasury
Parliament page
25 Apr 2023
To committee
Letter from the Minister for Levelling Up to the Chair dated 21 April 2023 concerning the Northern Ireland UK Shared Prosperity Fund Investment Plan
Parliament page
29 Mar 2023
To committee
Letter from the Permanent Secretaries of the Northern Ireland Department of Finance and Department for the Economy to the Chair dated 24 March 2023 concerning funding for levelling up in Northern Ireland
Parliament page
14 Mar 2023
To committee
Letter from the Chair to the Minister for Levelling Up dated 13 March concerning the Northern Ireland Investment Plan
Parliament page
14 Mar 2023
To committee
Letter from the Chair to the Minister for Levelling Up dated 13 March concerning capital spending
Parliament page
21 Feb 2023
To committee
Letter from the Minister for Levelling Up to the Chair dated 14 February 2023 following up her appearance before the Committee on 23 January
Parliament page
7 Feb 2023
To committee
Letter from the Chair to the Minister for Levelling Up dated 6 February 2023 concerning the logistics of Government levelling up policy
Parliament page
24 Jan 2023
To committee
Letter from the DLUHC Permanent Secretary to the Chair dated 23 January 2023 concerning Levelling Up Funding Round 2
Parliament page
24 Jan 2023
To committee
Letter from the Minister for Levelling Up to the Chair dated 19 January 2023 concerning the announcement of Levelling Up Funding Round 2
Parliament page
23 Jan 2023
To committee
Letter from the Minister for Levelling Up to the Chair dated 20 January 2023 concerning levelling up funding and the Spatial Data Unit
Parliament page
17 Jan 2023
To committee
Letter from the Minister for Economy, Welsh Government, to the Chair dated 9 January 2023 concerning funding for levelling up
Parliament page
10 Jan 2023
To committee
Letter from the Chairman of the Local Government Association People and Places Board to the Chair dated 19 December 2022 concerning funding for levelling up
Parliament page
10 Jan 2023
To committee
Letter from the Minister for Levelling Up to the Chair dated 20 December 2022 concerning the announcement of Round 2 of levelling up funding
Parliament page
10 Jan 2023
To committee
Letter from the Deputy First Minister and Cabinet Secretary for Covid Recovery, Scottish Government, to the Chair dated 13 December 2022 concerning funding for levelling up
Parliament page
13 Dec 2022
To committee
Letter from the Minister for Levelling Up to the Chair dated 8 December 2022 concerning funding for levelling up
Parliament page
13 Dec 2022
To committee
Letter from the Minister for Levelling Up to the Chair dated 12 December 2022 concerning the Community Ownership Fund
Parliament page
13 Dec 2022
To committee
Letter from the Minister for Levelling Up to the Chair dated 5 December 2022 concerning the UK Shared Prosperity Fund
Parliament page
13 Dec 2022
To committee
Letter from the Chief Secretary to the Treasury to the Chair dated 8 December 2022 concerning funding for levelling up
Parliament page
8 Dec 2022
To committee
Letter from the Chair to the Minister for Levelling Up dated 6 December 2022 concerning data on funding for levelling up
Parliament page
24 Nov 2022
To committee
Letter from the Minister for Levelling Up to the Chair dated 9 November 2022 concerning levelling up funding programmes, with additional spreadsheets
Parliament page
22 Nov 2022
To committee
Letter from the Secretary of State to the Chair dated 17 November 2022 concerning Investment Zones
Parliament page
16 Nov 2022
To committee
Letter from the Minister for Economy, Welsh Government, to the Chair dated 14 November 2022 concerning an invitation to give evidence for the inquiry into Funding for Levelling Up
Parliament page
1 Nov 2022
To committee
Letter from the Comptroller and Auditor General to the Chair dated 26 October 2022 concerning funding for levelling up
Parliament page
1 Nov 2022
To committee
Letter from the Secretary of State to the Chair dated 20 October 2022 concerning Investment Zones
Parliament page
20 Oct 2022
To committee
Letter from the Chair to the Chancellor of the Exchequer dated 18 October 2022 concerning EU structural funds
Parliament page
20 Oct 2022
To committee
Letter from the Chair to the Parliamentary Under Secretary of State for Levelling Up dated 12 October 2022 concerning funding for levelling up
Parliament page
20 Oct 2022
To committee
Letter from the Chair to the Comptroller and Auditor General dated 12 October 2022 concerning funding for levelling up
Parliament page
20 Oct 2022
To committee
Letter from the Chair to the Secretary of State dated 12 October 2022 concerning Investment Zones
Parliament page
20 Oct 2022
To committee
Letter from the Secretary of State to the Chair dated 23 September 2022 concerning Investment Zones
Parliament page