It is unclear how much engagement and intelligence gathering, if any, Ministers held with local and regional representatives, to inform their selection of towns from the medium- and low-priority groups. Departmental officials assessed towns against three qualitative criteria using the knowledge of the Department’s area-based teams, rather than consult with local stakeholders, and collectively gave these criteria less weight compared with the quantitative criteria in its assessment. Similarly, Ministers decided they were better placed to make decisions themselves without seeking the views of local stakeholders, such as LEPs, local MPs and directly elected mayors, despite officials recommending to Ministers that they do so. The Department says that Ministers declined, in writing, to engage with elected mayors on the Towns Fund because they speak routinely with mayors on a range of matters that affect local areas. The Department believes that the necessary local partnerships are being developed through the new tier of governance—Town Deal Boards—being created to support planning and spending of the funding at the town level. The Department says it is satisfied that the Town Deal Boards are well constituted and claims they are working well. It is vital that the Boards continue to fully engage local stakeholders and consult with residents as towns develop bids. Recommendation: In its Treasury Minute response, the Department should set out how it will oversee Town Boards, and how it will ensure that all relevant local and regional bodies, and local residents, are involved in planning and implementing Town Deals.