15
Accepted in Part
We questioned the Department on the nature and timing of the role for Ministers in...
Recommendation
We questioned the Department on the nature and timing of the role for Ministers in making final decisions for the Levelling Up Fund.40 The NAO’s report explains that following an initial pass/fail gateway, officials scored and ranked bids against published criteria and then passed a shortlist of the highest scoring bids to Ministers. Ministers then made final decisions, taking into account the scores as assessed by officials though the process allowed them some discretion in how bids met a pre-defined list of ‘other considerations’.41 The Department explained that Ministers made decisions about how much money to allocate; what score threshold to apply and what the balance of investment across the three themes of the Levelling Up Fund would be.42 We acknowledged that some decisions would always be taken subjectively by Ministers but wanted to understand how much discretion they had.43 We wanted to understand if Ministers had decided on the principles for awarding funding only after they knew who, from the 170 shortlisted bidders, would win and who would not as a result of those principles.44 HM Treasury told us after the evidence session that Ministers had seen a high level summary of all eligible bids prior to shortlisting but that they made decisions from a shortlist that had been locked down. The Department told us that none of the scores changed as a consequence of ministerial decision-making. It pointed us to the explanatory note which, it said, laid out the detail of how Ministers made their decisions.45 The explanatory note implies a single discussion in which Ministers discussed the shortlist and determined principles for award.46 However, the Department did not publish sufficient information for us to determine, as we would expect in the interests of openness and transparency, how much discretion Ministers had. For example, it did not publish lists of shortlisted or unsuccessful bidders, neither did it publish any information on how the Department had scored
Government Response Summary
The government defends its robust decision-making process and ministerial discretion for the Levelling Up Fund. However, it commits to providing information on the balance of successful and unsuccessful bids by theme and geography to enhance transparency regarding funding decisions, partially addressing the request for more published information.
Government Response
Accepted in Part
Government Response
Accepted in Part
HM Government
Accepted in Part
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.
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