Selecting towns for the Towns Fund

Public Accounts Committee Closed Inquiry
Opened: 27 Jul 2020 Closed: 9 Nov 2020 Parliament page
On 27 July 2019, the government announced the £3.6 billion Towns Fund for England, to support towns that currently do not have the right conditions to develop and sustain strong local economies and recognising that many towns have not benefited from the growth experienced by cities over recent decades. Its … Read more
7 Recommendations
20 Conclusions
1 Report
1 Oral session
1 Letter
1 Event
Activity timeline 4 events
6 Jul
2021
Correspondence
4 Feb
2021
Report published
11 Nov
2020
Report published
21 Sep
2020
Oral evidence
Oral evidence sessions 1 session
21 Sep 2020
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Selecting towns for the towns fund
Emran Mian · Department for Levelling Up, Housing and Communities Jeremy Pocklington · Ministry of Defence Stephen Jones · Ministry of Housing, Communities and Local Government
Title HC No. Published Items Response
Twenty-Fourth Report - Selecting towns for the Towns Fund HC 651 11 Nov 2020 27 Responded
Recommendations & Conclusions
27 results
2 Recommendation Accepted
Twenty-Fourth Report - Selecting t…
The Department has a weak and unconvincing justification for not publishing any information on the...
The Department has a weak and unconvincing justification for not publishing any information on the process it followed, which does not vindicate its lack of transparency. The Department says that it did not reveal the detail behind its selection of … Read more
Government Response
The government commits to providing a record of Ministerial recusal, decision criteria, and assessment scores upon completion of all Towns Fund decisions. It also plans to publish Heads of Terms on GOV.UK when agreed with towns.
HM Treasury
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3 Recommendation Accepted
Twenty-Fourth Report - Selecting t…
It is unclear how much engagement and intelligence gathering, if any, Ministers held with local...
It is unclear how much engagement and intelligence gathering, if any, Ministers held with local and regional representatives, to inform their selection of towns from the medium- and low-priority groups. Departmental officials assessed towns against three qualitative criteria using the … Read more
Government Response
The government agrees with the recommendation and states it is already implemented, citing existing expectations for Town Deal Boards, assessed governance, and requirements for local stakeholder and resident consultation specified in the Towns Fund guidance.
HM Treasury
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4 Recommendation Deferred
Twenty-Fourth Report - Selecting t…
It is still unclear what impact the Department is expecting from the Towns Fund, or...
It is still unclear what impact the Department is expecting from the Towns Fund, or when, and how the Department will measure its success. Although the Department is positive about the quality of the 13 plans submitted by the first … Read more
Government Response
The government's truncated response indicates an annual update will be provided from the monitoring and evaluation process but does not, in this response, set out the requested details on how the fund will secure long-term outcomes, measures of success, or specific job creation metrics.
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5 Recommendation Accepted
Twenty-Fourth Report - Selecting t…
We are concerned that towns may not have the capacity to deliver their plans and...
We are concerned that towns may not have the capacity to deliver their plans and spend the money well. The Department says that the towns most in need of investment would have been disadvantaged in a competitive bidding process because … Read more
Government Response
The government accepts the recommendation and commits to providing annual updates to the Committee on the Towns Fund's progress, including an assessment of towns' capacity to deliver their plans, with a target implementation date of April 2021.
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6 Recommendation Accepted
Twenty-Fourth Report - Selecting t…
It is not clear how the Towns Fund fits with other government funding programmes with...
It is not clear how the Towns Fund fits with other government funding programmes with overlapping aims. The Department confirms that, despite the impact of Covid-19 on government spending plans, the £3.6 billion funding allocated to the Towns Fund is … Read more
Government Response
The government agrees, stating the Towns Fund is a central component of the Levelling Up strategy and that the new Levelling Up Fund, announced at the 2020 Spending Review, will consolidate fragmented funding streams to provide greater clarity and alignment across programmes.
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7 Recommendation Accepted
Twenty-Fourth Report - Selecting t…
The impact of Covid-19 is likely to mean that some towns’ plans for how best...
The impact of Covid-19 is likely to mean that some towns’ plans for how best to spend the money will need to be revisited. We are very concerned about the short-term and long-term effects of Covid-19 on towns, and high … Read more
Government Response
The government agrees with the recommendation, stating it has already provided accelerated funding to towns in September 2020, allowed additional time for plan development, and encouraged towns to review plans to address the ongoing impact of Covid-19.
HM Treasury
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1 Conclusion Acknowledged
Twenty-Fourth Report - Selecting t…
On the basis of a report by the Comptroller and Auditor General, we took evidence...
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Ministry of Housing, Communities and Local Government (the Department) about the Towns Fund.1
Government Response
The government acknowledges the committee's introductory statement, confirming the basis of the report and the timeline of evidence and publication.
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8 Conclusion Rejected
Twenty-Fourth Report - Selecting t…
The Department’s lack of transparency fuelled accusations of political bias in the selection process.16 Furthermore,...
The Department’s lack of transparency fuelled accusations of political bias in the selection process.16 Furthermore, the Department’s statements to the press, issued after the National Audit Office’s report was published, referred to the report concluding that the selection process had … Read more
Government Response
The government disagrees with the committee, stating that wider government practice precludes sharing full Accounting Officer advice and that a summary, NAO report, and ministerial statements provide sufficient detail on selection decisions.
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9 Conclusion Accepted in Part
Twenty-Fourth Report - Selecting t…
Other examples of lack of clarity around the Towns Fund process are also of concern...
Other examples of lack of clarity around the Towns Fund process are also of concern to us. The Department gave a confusing explanation for how and why the risks from a no- deal Brexit were assessed by Ministers, when already … Read more
Government Response
The government states it has already provided details on Brexit risk assessment, published further guidance on assessment processes, and will provide transparency on future funding decisions. It notes the Towns Fund competitive round is now part of the Levelling Up Fund, with processes to be set out later.
HM Treasury
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10 Conclusion Not Addressed
Twenty-Fourth Report - Selecting t…
We heard from the Department that its officials had assessed each town against three qualitative...
We heard from the Department that its officials had assessed each town against three qualitative criteria using the knowledge of its area-based teams, rather than consulting directly with local stakeholders. The Department argued that it gave more weight to the … Read more
Government Response
The government's response details ongoing engagement with local representatives and requirements for Town Deal Boards to involve local stakeholders, but it does not address the committee's observation regarding the lack of direct consultation or ministerial rejection of advice during the initial town selection process.
HM Treasury
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11 Conclusion Not Addressed
Twenty-Fourth Report - Selecting t…
We queried why the Department had required a new tier of governance—Town Deal Boards—to be...
We queried why the Department had required a new tier of governance—Town Deal Boards—to be set up, rather than use existing governance structures to plan and implement the Towns Fund at the local level. The Department explained that existing structures, … Read more
Government Response
The government's response details its expectations for Town Deal Boards and their engagement but does not directly address the committee's query about the rationale for creating a new tier of governance instead of utilising existing local structures.
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12 Recommendation Accepted
Twenty-Fourth Report - Selecting t…
The Department told us that it is satisfied that the Town Deal Boards are well...
The Department told us that it is satisfied that the Town Deal Boards are well constituted, meeting departmental stipulations, and coming together well. Boards are involving the private sector and the wider social sector, with examples of some Boards being … Read more
Government Response
The government states it has already set out expectations for Town Deal Boards regarding stakeholder and community engagement in its prospectus and guidance. It assesses board governance and requires towns to provide rigorously assessed stakeholder engagement plans.
HM Treasury
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13 Conclusion Acknowledged
Twenty-Fourth Report - Selecting t…
The Department told us that it had not completed its analysis of the 13 plans...
The Department told us that it had not completed its analysis of the 13 plans submitted by the first cohort of towns but its early impressions of the quality of the plans and the range of interventions proposed were positive.30 … Read more
Government Response
The government acknowledges the committee's observation about its assessment of town investment plans. It states it conducts thorough reviews of town capacity and plan deliverability as part of the established investment process and provides ongoing support to towns.
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14 Conclusion Accepted
Twenty-Fourth Report - Selecting t…
Given our concerns in the past about the Department’s failure to put in place quantifiable...
Given our concerns in the past about the Department’s failure to put in place quantifiable objectives to help it measure the impact of its interventions on local economic growth, we asked the Department how it intended to approach this for … Read more
Government Response
The government agrees with the committee's observation regarding monitoring and evaluation. It details existing plans for national and project-level impact assessments and commits to publishing its full monitoring and evaluation strategy in Spring 2021, providing annual updates to the Committee.
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15 Conclusion Accepted
Twenty-Fourth Report - Selecting t…
The Department told us that it is looking to probe each project to gauge how...
The Department told us that it is looking to probe each project to gauge how convinced it is that towns can deliver their plans successfully, and that it will build in robust monitoring and evaluation processes from the start, agreeing … Read more
Government Response
The government disagrees with the committee's conclusion about a lack of clarity on impact measurement, outlining specific plans for national and project-level monitoring and evaluation, including tracking metrics on employment, income, and wellbeing, and commits to publishing the full strategy in Spring 2021.
HM Treasury
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16 Conclusion Accepted
Twenty-Fourth Report - Selecting t…
The Department’s rationale for opting for “a deals-based approach” to funding, rather than a competitive...
The Department’s rationale for opting for “a deals-based approach” to funding, rather than a competitive bidding process, was because towns most in need of investment would have been disadvantaged in a competitive bidding process due to a lack of leadership, … Read more
Government Response
The government agrees with the implied recommendation to support towns, reiterating its recognition of multiple funding programmes and its support for towns to align funding and develop strategic Town Investment Plans. It notes the Levelling Up Fund includes previous Towns Fund competition money.
HM Treasury
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17 Conclusion Acknowledged
Twenty-Fourth Report - Selecting t…
The Department further told us that it had entered into a contract worth around £8...
The Department further told us that it had entered into a contract worth around £8 million with Arup, a professional services company, to provide towns with specific expertise in areas such as real estate valuation. The Department described the efficiency … Read more
Government Response
The government acknowledges the committee's observation regarding its contract with Arup for consultancy support, confirming that Arup and its consortium provide additional support to towns as the Towns Fund Delivery Partner.
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18 Conclusion Not Addressed
Twenty-Fourth Report - Selecting t…
The Department told us that it is working at pace to agree the funding that...
The Department told us that it is working at pace to agree the funding that will be available for the 13 towns in the first cohort and would like to be able to make decisions in October. But the Department … Read more
Government Response
The government's response, which incorrectly categorises the conclusion as a recommendation, details accelerated funding provided to towns due to COVID-19 but does not address the committee's observation regarding potential delays in agreeing funding and issuing final project approvals.
HM Treasury
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19 Conclusion
Twenty-Fourth Report - Selecting t…
The Department has developed a funding profile for the Towns Fund over the next four...
The Department has developed a funding profile for the Towns Fund over the next four financial years but does not know yet whether it aligns with towns’ individual investment plans. The Department explained that it wants the profile of funding … Read more
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20 Conclusion Acknowledged
Twenty-Fourth Report - Selecting t…
The £3.6 billion Towns Fund has three separate strands of funding comprising: • The 101...
The £3.6 billion Towns Fund has three separate strands of funding comprising: • The 101 selected towns invited to develop Town Deals and bid for up to £25 million each, or up to £50 million in exceptional circumstances; • A … Read more
Government Response
The government acknowledges the description of the Towns Fund's structure and provides an update, stating that the competition for towns not in the initial selection will now be run as part of the new Levelling Up Fund.
HM Treasury
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21 Conclusion Not Addressed
Twenty-Fourth Report - Selecting t…
The Department confirmed that, despite the impact of Covid-19 on government spending plans, the £3.6...
The Department confirmed that, despite the impact of Covid-19 on government spending plans, the £3.6 billion funding allocated to the Towns Fund is secure. It told us that it had no plans to do anything other than continue with the … Read more
Government Response
The government's response, again incorrectly categorising the conclusion as a recommendation, details accelerated funding provided to towns due to COVID-19 but does not explicitly re-confirm the security of the £3.6 billion Towns Fund as stated in the committee's observation.
HM Treasury
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22 Conclusion Acknowledged
Twenty-Fourth Report - Selecting t…
We asked the Department whether, given the scale of change happening, it will bid for...
We asked the Department whether, given the scale of change happening, it will bid for higher levels of funding to support the Future High Streets Fund. It explained that, as many of the towns that are eligible for Future High … Read more
Government Response
The government acknowledges the committee's observation regarding its approach to funding, explaining that it has announced the new Levelling Up Fund to consolidate various funding streams, including £300 million from the Towns Fund, for a more integrated approach to local investment.
HM Treasury
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23 Conclusion Accepted
Twenty-Fourth Report - Selecting t…
The Department told us that many of the bids are aligned with other funds, both...
The Department told us that many of the bids are aligned with other funds, both from central and local government, and highlighted the importance of aligning the Towns Fund projects with other interventions.48 But the specific aims of the Towns … Read more
Government Response
The government acknowledges the committee's concern regarding the clarity of the Towns Fund's aims and its fit with other programmes. It responds by detailing how the fund aligns with broader strategies and introduces the new Levelling Up Fund to consolidate various funding streams, clarifying a more integrated approach to local investment.
HM Treasury
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24 Conclusion Accepted
Twenty-Fourth Report - Selecting t…
A consistent theme highlighted in the town plans that the Department has seen so far...
A consistent theme highlighted in the town plans that the Department has seen so far is the impact of Covid-19, leading towns to think about a more diverse range of uses for the high street. The Department told us that … Read more
Government Response
The government agrees with the implied importance of considering COVID-19 impacts, stating it has already provided £81.5 million in accelerated funding, adjusted timelines, and requires towns to outline COVID-19 considerations in their proposals.
HM Treasury
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25 Conclusion Accepted
Twenty-Fourth Report - Selecting t…
How the impact of Covid-19 will influence decisions about how the Department allocates the Towns...
How the impact of Covid-19 will influence decisions about how the Department allocates the Towns Fund is unclear. Whether towns that have been adversely affected by Covid-19 will have a greater likelihood of selection, or whether events may mean that … Read more
Government Response
The government agrees with the implied importance of addressing COVID-19 impacts, stating it has already provided £81.5 million in accelerated funding, adjusted timelines, and requires towns to outline COVID-19 considerations in their proposals.
HM Treasury
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26 Conclusion Acknowledged
Twenty-Fourth Report - Selecting t…
The Department explained that because of Covid-19 and the recent demands that have been placed...
The Department explained that because of Covid-19 and the recent demands that have been placed on local government, the private sector and other members of the Town Deal Boards, it has left towns and the Town Deal Boards to determine … Read more
Government Response
The government acknowledges the committee's concern about Covid-19's impact on towns' ability to secure match funding. It explains that it has provided accelerated funding, allowed additional time for plan development, and encouraged towns to review plans to adapt to changing circumstances.
HM Treasury
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27 Conclusion Accepted
Twenty-Fourth Report - Selecting t…
The Department has brought forward £80 million of the Towns Fund, with each eligible town...
The Department has brought forward £80 million of the Towns Fund, with each eligible town receiving between £500,000 and £1 million for projects that will make a difference to the area, such as new green spaces, the creation of pop-up … Read more
Government Response
The government agrees with the implied importance of accelerated funding to address COVID-19 impacts, stating it has already provided £81.5 million in accelerated funding, adjusted timelines, and requires towns to outline COVID-19 considerations in their proposals.
HM Treasury
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Government Response AI assessment · 26 of 7 classified
Accepted 13
Accepted in Part 1
Acknowledged 6
Deferred 1
Not Addressed 4
Rejected 1
Total 7 recs + 20 conclusions
Correspondence 1 letter
6 Jul 2021 Correspondence from Jeremy Pocklington CB, Permanent Secretary Ministry of Housing, Communities & Local Government, re Annual Towns Fund Report, dated 30 June 2021
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