9
Accepted
Economic development is a devolved power and, since the late 1990s, local growth funding in...
Conclusion
Economic development is a devolved power and, since the late 1990s, local growth funding in the devolved nations has been managed by the Scottish and Welsh Governments and the Northern Ireland Executive.24 Since 2020 however, central government’s principle local growth programmes have been UK-wide. The Towns Fund, announced in July 2019, was for England only but the Levelling Up Fund, the UK Community Renewal Fund and the UK Shared Prosperity Fund are all UK-wide.25 The Freeports programme, announced in August 2019, is also UK-wide and while the Chancellor announced Freeport locations in England at the March 2021 Budget, it has taken longer to agree Freeports in Scotland. On 25 March 2022, the UK and Scottish Governments opened bidding for two Scottish Green Freeports.26
Government Response Summary
The government agrees with the committee's implied recommendation regarding effective UK-wide investment but disagrees with the conclusion's premise. It outlines existing efforts such as specific Levelling Up Fund allocations for devolved nations, engagement with devolved administrations, and the establishment of interministerial groups to discuss levelling up.
Government Response
Accepted
Government Response
Accepted
HM Government
Accepted
The department agrees with the Committee’s recommendation. Target implementation date: To be confirmed Although the government agrees with the Committee’s recommendation, it disagrees with the conclusion it is based on. The department’s priority is delivering effective investment in all parts of the UK. For LUF, the round two prospectus confirms across both rounds at least 9% of the total allocation will be set aside for Scotland, 5% for Wales, and 3% for Northern Ireland, subject to a suitable number of high-quality bids coming forward. The Prospectus and Technical Note set out how applicants in Scotland, Wales and Northern Ireland should set out how bids align with, or complement, wider public service investments made available by the devolved administrations. Where appropriate, the department will seek input from devolved administrations on projects to be delivered in their geographical areas, including on deliverability and alignment with existing provision. UKSPF funding has been fully allocated for 2022-23 to 2024-25. Recognising individual differences between England, Scotland, Wales and Northern Ireland, the allocation method was adapted for each part of the UK. The department set out a methodology note explaining how it ensured funding going to Scotland, Wales, and Northern Ireland meets funding received under European Structural Funds. Future UKSPF funding is a matter for Spending Review 2024. The department delegated delivery of UKSPF in Scotland and Wales to local authorities; and working closely with local partners in Northern Ireland. This means local people will play a leading role in prioritising and tailoring UKSPF to local needs. To ensure there is a platform to discuss issues of mutual interest within the department's portfolio, officials worked with devolved governments to establish an Interministerial Group, which first met on 24 May. In addition, the inaugural meeting of the Interministerial Standing Committee in late March was chaired by the department’s Secretary of State and attended by the First Ministers of Scotland and Wales and intergovernmental relations ministers, to discuss strategic and cross-cutting elements of levelling up.
Source
Committee
Public Accounts Committee
Inquiry
Supporting local economic growth
Report
Fifth Report - Local economic growth
08 Jun 2022
HC 252
Addressee Bodies
HM Treasury
Timeline
Recommendation age
4.1 yrs
Report published
08 Jun 2022