13 Rejected

We reminded the Department that when we reported previously on the Towns Fund we had...

Recommendation
We reminded the Department that when we reported previously on the Towns Fund we had raised concerns over the opacity over some of its decision making.34 In November 2020, we reported that the selection process for awarding the Towns Fund had not been impartial. We said that a lack of transparency over the selection process, which had relied upon Ministers selecting which towns had received funding from a ranked list prepared by officials, had fuelled accusations of political bias.35 At March’s evidence session, we 27 Qq 101–102 28 Q 104 29 Qq 103–105 30 Qq 103–104 31 Qq 45, 49, 50, 53 32 Q 49 33 Q 53 34 Q 54 35 Committee of Public Accounts, Selecting towns for the Towns Fund, Twenty-Fourth Report of Session 2019–21, HC 651, 11 November 2020 12 Local economic growth explained that there were still lots of MPs who still did not understand why their area did not get funding under Town Deals and queried what safeguards the Department had put in place to stop the political influence of Ministers in the current suite of funding.36
Government Response Summary
The government disagrees with the committee's implied recommendation for new safeguards against political influence, defending its robust decision-making process for the Levelling Up Fund and the necessity of ministerial discretion for wider considerations. However, it commits to providing information on the balance of successful and unsuccessful bids by theme and geography to enhance transparency.
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