14 Accepted

The Department’s accounting officer reasoned that we had discussed and reported on the Towns Fund...

Recommendation
The Department’s accounting officer reasoned that we had discussed and reported on the Towns Fund at quite considerable length and that he felt it had a been a valid and fair process.37 In respect of the Levelling Up Fund, he said that there had been a very high level of transparency, referring to an explanatory note setting out how decisions were taken, that it had published alongside the list of 105 successful bidders.38 Contrary to the Department’s indications about data published, it did not publish a list of unsuccessful bidders or any thematic distributional analysis of bids and awards and there is no transparency of the location and type of unsuccessful versus successful bids.The Department reassured us that the party of the local MP played no part in the decision-making but that, as they had set out in advance, there was a small allowance in the scoring for where a bid had demonstrated local MP support.39
Government Response Summary
The government commits to providing information on the balance of successful and unsuccessful bids by theme and geography, directly addressing the committee's call for greater transparency on unsuccessful bids and thematic analysis. It also defends its existing decision-making process for the Levelling Up Fund.
Government Response
Accepted
HM Government Accepted
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