18 Not Addressed

The Department told us that it is working at pace to agree the funding that...

Conclusion
The Department told us that it is working at pace to agree the funding that will be available for the 13 towns in the first cohort and would like to be able to make decisions in October. But the Department did not want to guarantee it would meet that deadline and warned that it could take up to 12 months to agree business cases and issue final approvals before projects can begin.41 The Department told us that, while it would like to see as many projects as possible happen as quickly as possible, given the nature of construction projects and minor infrastructure works, if they are to happen robustly and safely, it would be some time before we see many projects on the ground.42
Government Response Summary
The government's response, which incorrectly categorises the conclusion as a recommendation, details accelerated funding provided to towns due to COVID-19 but does not address the committee's observation regarding potential delays in agreeing funding and issuing final project approvals.
Government Response
Not Addressed
HM Government Not Addressed
7.1 The government agrees with the Committee’s recommendation. Recommendation implemented 7.2 The department has been very aware of the impact of COVID-19 on the delivery of the Towns Fund. Indeed, the type of interventions funded through the Towns Fund have proved to be prescient – COVID-19 has accelerated and magnified existing market forces in many ways, making investment of this kind all the more important. 7.3 That is why in September 2020, all 101 towns identified for a Town Deal received accelerated funding to help address the immediate additional challenges caused by Covid-19. Payments totalling £81.5 million were made that month. 7.4 The department know that as towns seek to recover from the crisis, Town Deals may take on additional purpose. The impact of COVID-19 has been particularly acute for those areas with the vulnerabilities and challenges that the Towns Fund was established to address. The focus has not changed, but the funding that has been made available has become even more important. That is why the Department has made adjustments in recognition of this from the outset of the pandemic, including allowing towns additional time to develop and submit their Town Investment Plans and also encouraging Towns to review their plans to take account of changing circumstances and emerging priorities. The department continues to monitor the situation and where needed will provide towns with additional support. 7.5 All towns have been asked to outline in their proposals how they have considered the ongoing impact of COVID-19. The department has a package of support in place from the Town’s Fund delivery partner (Arup and consortium). They are providing guidance to towns and joining them up where they face shared challenges, as well as providing additional support to those with the greatest challenges.
Addressee Bodies
HM Treasury
Timeline
Recommendation age 5.7 yrs
Report published 11 Nov 2020