12 Rejected

We questioned the Department on whether the way in which it was awarding funding might...

Recommendation
We questioned the Department on whether the way in which it was awarding funding might mean some areas missed out multiple times across the various funding pots while others were given several opportunities to get funding.31 The Department explained that successful bidders from round 1 of the Levelling Up Fund would not be able to bid again in round 2, though it said it had made an exception for transport authorities which could bid for a transport project on top of another successful bid.32 We heard that the Department’s decision on which towns it had selected as eligible for the Towns Fund had been driven by need and so it hoped that any areas that were benefiting from the Towns Fund and had the opportunity to bid for the Levelling Up fund would be places in greatest need of local investment. The Department acknowledged that there were some ‘challenges’ to the competitive approach and told us that it had decided to award UKSPF by formula to ensure that there would be funding in every part of the country.33
Government Response Summary
The government rejects the implied recommendation to change the funding award process to prevent areas from missing out, defending its robust decision-making process and ministerial discretion to ensure a fair spread of Levelling Up Fund allocations. It does, however, commit to providing information on the balance of successful and unsuccessful bids by theme and geography.
Government Response
Rejected
HM Government Rejected
The government disagrees with the Committee’s recommendation. The Department for Levelling Up, Housing & Communities (the department) followed a robust decision-making process for the first round of the Levelling Up Fund (LUF). This process was set out in the Levelling Up Fund Prospectus and Technical Note, both of which were published prior to the shortlisting of bids, and in a published explanatory note once decisions were taken. As set out in that explanatory note, it was also recorded that all ministers had notified their respective private offices that they had no constituency, personal or pecuniary interests in relation to the Fund. At decision making, ministers have discretion to make choices about how to prioritise and apply the 5 wider considerations alongside the outcome of assessment. Those wider considerations include geographic spread within and between regions/ nations and past investments to ensure a fair spread of levelling up funding in places. To weigh these considerations up, ministers need access to information about where the bids are located together with historic investments that have been directed there. When reviewing the location of bids, the identity of the local authority applicants will be clear even if their names are hidden. For this reason, the department does not consider it sensible to hold back the names of local authority applicants whilst minsters agree how to apply the wider considerations. The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2022 Building on the full and transparent account of assessment and decision making set out in the Explanatory Note for round one, the department is happy to provide information on the balance of successful and unsuccessful bids by theme and geography.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 4.1 yrs
Report published 08 Jun 2022