Select Committee · Housing, Communities and Local Government Committee

Funding for Levelling Up

Status: Closed Opened: 20 Oct 2022 Closed: 18 Mar 2024 14 recommendations 20 conclusions 1 report

This inquiry will look at the funds available for levelling-up and how effectively resources are directed to those areas most in need. The Committee’s inquiry will examine questions around the allocation of levelling-up resources and the aim, size and focus of the many different funds available. The inquiry will also explore how far the Government’s … Show more

Clear

Reports

1 report
Title HC No. Published Items Response
Sixth Report - Funding for Levelling Up HC 744 26 May 2023 34 Responded

Recommendations & Conclusions

19 items
4 Recommendation Sixth Report - Funding for Levelling Up Accepted

Prioritise flexible revenue funding for local authorities and reduce bid-based allocations.

As a starting principle, local authorities who most require prioritising within the Levelling Up policy should be allocated money through revenue to achieve objectives that are in line with their local circumstances and need, with the appropriate monitoring and expenditure in place. Local authorities must be given the flexibility to … Read more

Government response AI summary
The government highlights its published plan for simplifying the funding landscape and its commitment to launch a Funding Simplification Doctrine in 2024, which will encourage allocative approaches over competitive bids where suitable. It cites the UKSPF as a non-competitive fund with a mix of revenue …
Read full response →
Ministry of Housing, Communities and Local Government
5 Conclusion Sixth Report - Funding for Levelling Up Accepted

Limited progress achieved simplifying Levelling Up funding streams and competitive bidding requirements.

The Levelling Up White Paper committed the Department to simplify funding streams and reducing the requirements to access competitive bidding. Despite this, we have seen limited evidence that any progress has been made on these objectives to date. Furthermore, the evidence we received on competitive funding has indicated the challenges … Read more

Government response AI summary
The government states it published a plan on 4 July 2023 for simplifying funding and will launch a Funding Simplification Doctrine in 2024 to guide appropriate distribution methodologies. It also highlights the UK Shared Prosperity Fund which provides formula-based allocation rather than competitive bidding.
Read full response →
Ministry of Housing, Communities and Local Government
6 Conclusion Sixth Report - Funding for Levelling Up Accepted

Competitive bidding processes are resource-intensive, costly, and disadvantage smaller local authorities.

It was made clear by our witnesses that competitive bidding is a resource intensive and costly activity. This can create barriers for stakeholders and communities in need of funding. Whilst limited funding was provided for some local authorities in the Funding for Levelling Up 37 Levelling Up Fund round one … Read more

Government response AI summary
The government outlines its plan for simplifying the funding landscape, published on 4 July 2023, and commits to launching a Funding Simplification Doctrine in 2024. This doctrine will assess the most suitable distribution methodology, encouraging allocative approaches where appropriate to minimize demands on local authorities.
Read full response →
Ministry of Housing, Communities and Local Government
8 Conclusion Sixth Report - Funding for Levelling Up Accepted

DLUHC lacks a consistent, department-wide process for providing competitive bid feedback.

We heard evidence which brought into question the extent of support provided to applicants or unsuccessful applicants by DLUHC. There is a wide gap in perception between the quality of feedback the DLUHC said it had provided and the quality of feedback applicants said they had received. DLUHC does not … Read more

Government response AI summary
The government confirms it provided feedback to unsuccessful applicants in both rounds, improving the process in round two by providing detailed written feedback based on lessons learned from round one. They note receiving positive feedback on the round two process.
Read full response →
Ministry of Housing, Communities and Local Government
11 Recommendation Sixth Report - Funding for Levelling Up Accepted

Encourage collaboration between communities and local authorities in competitive bidding processes.

The nature of competitive bidding can result in resentment between communities and similar neighbouring authorities across the country. Communities and local 38 Funding for Levelling Up authorities should be encouraged to work together, and the Government should be mindful of any adverse effects caused by competitive bidding. It is important … Read more

Government response AI summary
The government acknowledges the administrative burden of competitive bidding and states the upcoming funding simplification doctrine will balance its approach. It commits to working with local authorities to ensure fair and transparent distribution of competitive funding and to encouraging collaboration, citing existing capacity grants and …
Read full response →
Ministry of Housing, Communities and Local Government
13 Recommendation Sixth Report - Funding for Levelling Up Accepted

Prohibit DLUHC from introducing additional metrics, or mandate public communication of changes.

Throughout all future competitive bidding processes, the Government must avoid introducing additional metrics for success once an application process has closed. If, for any reason, this becomes unavoidable, the DLUHC must communicate this change via official and public channels of communication before successful applicants are announced. Throughout any funding programme … Read more

Government response AI summary
The government refutes the claim of introducing new metrics, stating its decision-making framework was published at the outset. It adds that it has provided £65 million in additional funding to support local authorities with project development, including adapting to inflation impacts.
Read full response →
Ministry of Housing, Communities and Local Government
17 Recommendation Sixth Report - Funding for Levelling Up Accepted

Require DLUHC to utilise local government data expertise and ensure clear data sources.

The DLUHC should not seek to fix something which is not broken. Rather than outsourcing the collection of new data sets, the Department should have called on the expertise of bodies such as the Local Government Association and offices within local government which have ample access to data on deprivation … Read more

Government response AI summary
The government defends its data collection approach, explaining that its chosen indicators align with Levelling Up Fund interventions and that data sources are primarily government statistical releases, with links provided in published methodology notes. It states it chose to gather data from original sources rather …
Read full response →
Ministry of Housing, Communities and Local Government
18 Conclusion Sixth Report - Funding for Levelling Up Accepted

DLUHC lacks sufficient data on levelling up expenditure to measure policy success.

We are concerned about the DLUHC’s lack of sufficient data on all aspects relating to levelling up. The Department has acknowledged that it lacks data of sufficient quality about Government department’s expenditure on the full range of levelling up funds. It also lacks data on combined authority income and expenditure. … Read more

Government response AI summary
The government acknowledges data concerns but states good progress is being made on metrics, with new data publicly available. They also note the Levelling Up and Regeneration Bill will require annual reports and DLUHC is working to publish subnational expenditure data, with an annual report …
Read full response →
Ministry of Housing, Communities and Local Government
19 Recommendation Sixth Report - Funding for Levelling Up Accepted

Publish DLUHC departmental and combined authority expenditure data for public monitoring.

One of our core tasks is to monitor the policy of the DLUHC and without sufficient data we are limited in our ability to do so. We are concerned that the lack of accessible data was not foreseen or resolved in a timely manner. As the DLUHC noted themselves that … Read more

Government response AI summary
The government outlines ongoing efforts to make data publicly available, including through the Subnational Indicators Explorer and a subnational expenditure project. It also states that an Annual Report on Devolution will be published by March 2024, and the Levelling Up and Regeneration Bill will mandate …
Read full response →
Ministry of Housing, Communities and Local Government
20 Conclusion Sixth Report - Funding for Levelling Up Accepted

DLUHC's Spatial Data Unit's work and future plans remain unclear.

The DLUHC’s solution to its lack of data appears to have been the creation of the ‘Spatial Data Unit’ (SDU). The SDU was set up over a year ago and since then we have sought to understand the work of this unit and their forward plan. However, it remains unclear … Read more

Government response AI summary
The government clarifies that the Spatial Data Unit (SDU) is transforming data use for place-based decision-making and is already producing granular data, such as LSOA Gross Value Added (GVA) and improved R&D expenditure estimates. The SDU is also supporting the Subnational Indicators Explorer, which is …
Read full response →
Ministry of Housing, Communities and Local Government
21 Recommendation Sixth Report - Funding for Levelling Up Accepted

Publish annual data production plans and availability timelines for the SDU

The delay and lack of information regarding what the SDU is working on, what the Unit intends to produce and when these data sets will be available, is unsatisfactory. The DLUHC, via the SDU, must make clear at the start of every year what data it is planning to produce … Read more

Government response AI summary
The government outlines the Spatial Data Unit's (SDU) ongoing work to transform data use, including subnational expenditure projects, partnerships with the ONS for local statistics, and the development of public tools like the Subnational Indicators Explorer, updated quarterly. It highlights various published data outputs and …
Read full response →
Ministry of Housing, Communities and Local Government
22 Conclusion Sixth Report - Funding for Levelling Up Accepted

Clarify impact of Treasury's capital expenditure changes on future DLUHC projects

According to the Financial Times, concerns about the DLUHC’s ability to deliver ‘value for money’ have been raised by the Treasury. Despite DLUHC’s efforts to reassure us, the Treasury’s decision to remove DLUHC’s ability to sign off on capital expenditure is a significant concern. The DHLUC needs to make clear … Read more

Government response AI summary
The government clarifies that the change in capital expenditure sign-off only relates to new projects and has no implications for DLUHC's budgets, policy objectives, or the delivery of Levelling Up. They cite recent funding announcements as evidence of continued investment.
Read full response →
Ministry of Housing, Communities and Local Government
27 Conclusion Sixth Report - Funding for Levelling Up Accepted

DLUHC's consultation with Devolved Governments on levelling up funding proved unsatisfactory

The DLUHC has told us that it consulted with the Devolved Governments on the creation, compatibility, and implementation of the levelling up funds. However, we have heard from the Scottish and Welsh Governments, and officials from the Northern Ireland Executive, that they have not been satisfied with the level of … Read more

Government response AI summary
The government acknowledges shared goals with devolved administrations and outlines its existing close working relationship and consultation efforts across various levelling up initiatives, including joint Freeports, seeking advice on the Levelling Up Fund, and engaging on UKSPF interventions.
Read full response →
Ministry of Housing, Communities and Local Government
28 Conclusion Sixth Report - Funding for Levelling Up Accepted

Levelling Up funding often incompatible with devolved policy and inefficiently distributed

We have also heard from the Scottish and Welsh Governments, and officials from the Northern Ireland Executive, that levelling up funding was not always compatible with devolved policy and that the method of distribution was not appropriate. The Multiply fund is an example of the UK Government not providing value … Read more

Government response AI summary
The government acknowledges shared goals with devolved administrations and asserts they are working closely across various levelling up areas, citing examples like joint Freeports, and consultations on the Levelling Up Fund and UKSPF to agree bespoke interventions and align with priorities. They do not directly …
Read full response →
Ministry of Housing, Communities and Local Government
29 Recommendation Sixth Report - Funding for Levelling Up Accepted

Ensure ongoing, detailed, and sufficient DLUHC engagement with Devolved Governments on funding distribution

Where the DLUHC is seeking to provide funding in [policy] areas that are generally understood to be devolved, it is critical that the Department works hand in glove with the Devolved Governments. As such, through good communication and close collaboration, the Department should ensure the distribution of funding reflects the … Read more

Government response AI summary
The government describes its existing and past close collaboration with devolved administrations on Levelling Up, citing examples like joint Freeport announcements, seeking input on the Levelling Up Fund, and developing bespoke interventions for the UKSPF, asserting it is already working closely across the UK.
Read full response →
Ministry of Housing, Communities and Local Government
30 Conclusion Sixth Report - Funding for Levelling Up Accepted

DLUHC consultation parameters incompatible with Northern Ireland Act and existing structures

The lack of consideration for the circumstances in which the Executive and its Officials in Northern Ireland operate is of even greater concern to us and speaks to an on- going theme we found throughout this inquiry regarding the extent of consultation carried out by the DLUHC with Devolved Governments … Read more

Government response AI summary
The government acknowledges the importance of Section 75 considerations for Northern Ireland. They state that for UKSPF, applicants must describe impacts and collect data on protected characteristics, and they will further embed these considerations. For the Levelling Up Fund, they explain that Memorandums of Understanding …
Read full response →
Ministry of Housing, Communities and Local Government
31 Recommendation Sixth Report - Funding for Levelling Up Accepted

Engage with Northern Ireland officials through existing structures, ensuring Section 75 compatibility.

In the future, the DLUHC must make sure that its engagement with officials in Northern Ireland is compatible with section 75 of the 1998 Northern Ireland Act, so 42 Funding for Levelling Up that in the absence of an Executive, officials in Northern Ireland are able to engage with the … Read more

Government response AI summary
The government outlines existing measures to ensure engagement with Northern Ireland officials is compatible with Section 75 of the 1998 Northern Ireland Act, including requiring UKSPF applicants to describe project impact and using MoUs for the Levelling Up Fund, while acknowledging the challenge of a …
Read full response →
Ministry of Housing, Communities and Local Government
32 Conclusion Sixth Report - Funding for Levelling Up Accepted

Levelling Up is another short-term local growth initiative hindering sustained development.

The Government’s flagship Levelling Up policy is one in a long line of local growth initiatives. The National Audit Office reported that since 2010 there has been the repeated introduction of ‘new’ local growth policies. The stop-start character of local growth initiatives has arguably slowed or even in some case … Read more

Government response AI summary
The government acknowledges the historic stop-start approach to local growth and states that Levelling Up is a long-term programme, with the Levelling Up and Regeneration Bill enabling missions to continue beyond 2030. It also refers to a recently published simplification plan to improve the current …
Read full response →
Ministry of Housing, Communities and Local Government
34 Recommendation Sixth Report - Funding for Levelling Up Accepted

Adopt a sustained, long-term approach to Levelling Up with secure, ongoing funding.

We note the significant cross-party consensus there appears to be for the challenges that the Levelling Up policy is seeking to solve. We recommend that future Governments take a more sustained and long-term approach to levelling up matched by ongoing and secure funding. This must avoid unnecessary duplication and not … Read more

Government response AI summary
The government states that the Levelling Up policy is already a long-term program, with missions set until 2030 and provisions for continuation beyond. They also reference a simplification plan to streamline funding and reduce duplication, claiming existing efforts address the recommendation.
Read full response →
Ministry of Housing, Communities and Local Government

Oral evidence sessions

5 sessions
Date Witnesses
30 Jan 2023 Rt Hon Sadiq Khan · Mayor of London View ↗
23 Jan 2023 Dehenna Davison · Department for Levelling Up, Housing and Communities, Jessica Blakely · Department for Levelling Up, Housing and Communities View ↗
12 Dec 2022 Andy Burnham · Greater Manchester Combined Authority, Andy Street · Mayor of the West Midlands, Dominic McCullough · Northern Ireland Department of Finance, Laura McDonald · Northern Ireland Department of Finance, Maeve Hamilton · Northern Ireland Department for the Economy, Tony Simpson · Northern Ireland Department of Finance, Tracy Brabin MP · Mayor of West Yorkshire, Vaughan Gething MS · Welsh Government View ↗
28 Nov 2022 Councillor Kevin Bentley · Local Government Association, Geoff Raw · Brighton and Hove City Council, Georgina Blakemore · Epping Forest District Council, John Swinney MSP · Scottish Government, Matt O'Neill · Barnsley Council View ↗
14 Nov 2022 Adam Hawksbee · Onward, James Morrison · Robert Gordon University, Paul Swinney · Centre for Cities, Professor Steve Fothergill · Sheffield Hallam University View ↗

Who gave evidence

20 witnesses
WitnessOrganisationSessions
Adam Hawksbee · Deputy Director Onward 1
Andy Burnham · Mayor of Greater Manchester Greater Manchester Combined Authority 1
Andy Street · Mayor Mayor of the West Midlands 1
Councillor Kevin Bentley · Chairman of the People and Places Board Local Government Association 1
Dehenna Davison · Parliamentary Under-Secretary of State (Levelling… Department for Levelling Up, Housing and Communities 1
Dominic McCullough · Director European Union Division Northern Ireland Department of Finance 1
Geoff Raw · Chief Executive Brighton and Hove City Council 1
Georgina Blakemore · Chief Executive Epping Forest District Council 1
James Morrison · Reader in Journalism and Author of 'The Left Behi… Robert Gordon University 1
Jessica Blakely · Director of Levelling Up Major Programmes Department for Levelling Up, Housing and Communities 1
John Swinney MSP · Deputy First Minister Scottish Government 1
Laura McDonald · Deputy Director European Union Division Northern Ireland Department of Finance 1
Maeve Hamilton · Head of the EU Fund Management Division Northern Ireland Department for the Economy 1
Matt O'Neill · Executive Director for Growth and Sustainability Barnsley Council 1
Paul Swinney · Director of Research Centre for Cities 1
Professor Steve Fothergill · Professor Sheffield Hallam University 1
Rt Hon Sadiq Khan · Mayor Mayor of London 1
Tony Simpson · Director of Strategic Policy and Reform Northern Ireland Department of Finance 1
Tracy Brabin MP · Mayor Mayor of West Yorkshire 1
Vaughan Gething MS · Minister for Economy Welsh Government 1

Correspondence

32 letters
DateDirectionTitle
8 Nov 2023 To cttee Letter from the Secretary of State concerning the Committee’s report into fundi…
21 Sep 2023 To cttee Letter from the Chair to the Secretary of State dated 19 September 2023 concern…
11 Jul 2023 To cttee Letter from the Minister for Levelling Up to the Chair dated 5 July 2023 concer…
27 Apr 2023 To cttee Letter from the Minister for Levelling Up to the Chair dated 24 April 2023 conc…
25 Apr 2023 To cttee Letter from the Minister for Levelling Up to the Chair dated 21 April 2023 conc…
29 Mar 2023 To cttee Letter from the Permanent Secretaries of the Northern Ireland Department of Fin…
14 Mar 2023 To cttee Letter from the Chair to the Minister for Levelling Up dated 13 March concernin…
14 Mar 2023 To cttee Letter from the Chair to the Minister for Levelling Up dated 13 March concernin…
21 Feb 2023 To cttee Letter from the Minister for Levelling Up to the Chair dated 14 February 2023 f…
7 Feb 2023 To cttee Letter from the Chair to the Minister for Levelling Up dated 6 February 2023 co…
24 Jan 2023 To cttee Letter from the DLUHC Permanent Secretary to the Chair dated 23 January 2023 co…
24 Jan 2023 To cttee Letter from the Minister for Levelling Up to the Chair dated 19 January 2023 co…
23 Jan 2023 To cttee Letter from the Minister for Levelling Up to the Chair dated 20 January 2023 co…
17 Jan 2023 To cttee Letter from the Minister for Economy, Welsh Government, to the Chair dated 9 Ja…
10 Jan 2023 To cttee Letter from the Minister for Levelling Up to the Chair dated 20 December 2022 c…
10 Jan 2023 To cttee Letter from the Chairman of the Local Government Association People and Places …
10 Jan 2023 To cttee Letter from the Deputy First Minister and Cabinet Secretary for Covid Recovery,…
13 Dec 2022 To cttee Letter from the Minister for Levelling Up to the Chair dated 8 December 2022 co…
13 Dec 2022 To cttee Letter from the Chief Secretary to the Treasury to the Chair dated 8 December 2…
13 Dec 2022 To cttee Letter from the Minister for Levelling Up to the Chair dated 5 December 2022 co…