Value for Money

Levelling up funding to local government

Published 17 November 2023 5 recommendations Ministry of Housing, Communities and Local Government Business and industryGrants and fundsLocal economyLocal governmentLocal service deliveryLocal services and housingMoney and taxTrade and investment nao.org.uk
Government is funding thousands of levelling up projects across the UK. But many of these deadlines are unlikely to be met.

Recommendations (5)

Source: NAO Recommendations Tracker · PAC follow-up below
5
Accepted
3
Implemented
2
In Progress
5
NAO Confirmed
Ministry of Housing Communities and Local Government
Rec 1 Accepted Implemented
Given the delays to projects across the Levelling Up Fund and Towns Fund, DLUHC should set out what further action it is going to take if projects cannot be completed within the existing funding deadlines. This could include resetting expectations for what and when these funds will deliver, to take account of rising cost pressures driven by factors including inflation and capacity shortages.
Page 14, a Q3 2025-26
Ministry of Housing Communities and Local Government
Rec 2 Accepted Implemented
DLUHC should swiftly build on the simplification pathfinder pilots and embed the learning into any further rounds of the Levelling Up Fund and similar future funds.
Page 14, b Q3 2025-26
Ministry of Housing Communities and Local Government
Rec 3 Accepted Work in Progress
DLUHC should further use the learning from the process and impact evaluation to build an evidence base of what works to stimulate local economies.
Page 14, c Q1 2028-29
Ministry of Housing Communities and Local Government
Rec 4 Accepted Work in Progress
DLUHC should work with HM Treasury to ensure that funds for impact evaluation are secured beyond the current spending cycle and explore whether funding deadlines for the current funds can be extended to protect value for money.
Page 14, d Q1 2026-27 HM Treasury
Ministry of Housing Communities and Local Government
Rec 5 Accepted Implemented
DLUHC should develop its plans to disseminate learning and insight from its evaluations in a timely way and engage with local authorities to maximise understanding of what works prior to waiting for final evaluation reports.
Page 14, e Q4 2025-26

Parliamentary Committee Follow-Up

The Public Accounts Committee examined this NAO report and published its own recommendations. The government responds to PAC recommendations via Treasury Minutes.

Twenty-First Report - Levelling up funding to local government
Public Accounts Committee · 15 March 2024 · 18 recommendations
View PAC report & government responses parliament.uk