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 …

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

6 items
9 Recommendation Sixth Report - Funding for Levelling Up Acknowledged

Publish guidance on providing timely, detailed, and consistent feedback for all funding bids.

We recommend that the DLUHC provides better guidance on how it will provide feedback on bids. The guidance must set out that feedback is timely, detailed, and consistent. This is especially important for levelling up funds as the quality of DLUHC’s feedback can hinder future applications which can be to …

Government response. The government states it is reflecting on lessons learned from past Levelling Up Fund rounds regarding feedback and will apply these lessons to future feedback approaches, but does not commit to specific guidance changes or public feedback.
Ministry of Housing, Communities and Local Government
10 Conclusion Sixth Report - Funding for Levelling Up Acknowledged

Competitive bidding risks distorting local priorities to align with Whitehall's perceived preferences.

We acknowledge that in certain circumstances competitive bidding can also foster collaboration across local government. However, it can also encourage local authorities to develop plans or projects it perceives Whitehall will value to secure funding, rather than to deliver what their local communities may have prioritised.

Government response. The government acknowledges the administrative burden of competitive bidding and confirms that a simplification plan will balance their approach, committing DLUHC to work with local authorities for fair and transparent distribution. They also highlight existing measures like capacity grants and …
Ministry of Housing, Communities and Local Government
14 Conclusion Sixth Report - Funding for Levelling Up Acknowledged

Local authorities incurred significant wasted resources on altered Investment Zone policy.

We heard that an Investment Zone expression of interest costs in the region of £50,000 for one application. Since the Government’s Growth Plan 2022, little to no updates have been provided on the future of Investment Zones until the Budget in March 2023. Although we welcome the Government’s decision to …

Government response. The government acknowledges the work councils put into previous Investment Zone applications, stating this effort was not wasted but informed policy development for the refocused program. They explain the decision to limit the number of zones and eligible areas, noting …
Ministry of Housing, Communities and Local Government
15 Recommendation Sixth Report - Funding for Levelling Up Acknowledged

Ensure Investment Zone policy stability to prevent wasted resources for local authorities.

The Investment Zone policy geared local government up to the prospect of additional funding before the goalposts were moved. Whilst we appreciate that policies sometimes necessarily evolve over time, every effort must be made to ensure that a similar situation does not occur in the future, resulting in a waste …

Government response. The government acknowledges the policy shift for Investment Zones was due to a new administration and states that, in the refocused policy, the department tried to minimise wasted effort for local authorities.
Ministry of Housing, Communities and Local Government
24 Conclusion Sixth Report - Funding for Levelling Up Acknowledged

Serious deficit in DLUHC's collaboration and communication with UKSPF recipients

We do not have sufficient data regarding how calculations have been made, the information we do have from central and the Devolved Governments are also not comparable in their current form. However, the number of stakeholders and local government bodies which have told us UKSPF is not a sufficient replacement …

Government response. The government reiterates that its UKSPF funding methodology was published in 2022 and claims engagement with devolved administrations took place. It states it will seek to improve engagement and collaboration on any future funding, but maintains current funding is sufficient.
Ministry of Housing, Communities and Local Government
33 Conclusion Sixth Report - Funding for Levelling Up Acknowledged

Levelling Up unlikely to succeed without long-term strategy and substantive funding.

Based on the evidence we have received and given the historic frequent churn of local economic growth initiatives, it can be argued that levelling up is unlikely to be successful in achieving the objectives it seeks to address. The challenges levelling up seeks to resolve are complex and cannot be …

Government response. The government acknowledges the concern regarding previous short-term initiatives, asserting that Levelling Up is a long-term programme with 2030 missions and legislative backing to continue beyond. It also notes efforts through a simplification plan to streamline funding and reduce administrative …
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 ↗

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 Minister for Levelling Up to the Chair dated 19 January 2023 co…
24 Jan 2023 To cttee Letter from the DLUHC Permanent Secretary to the Chair dated 23 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 12 December 2022 c…
13 Dec 2022 To cttee Letter from the Minister for Levelling Up to the Chair dated 5 December 2022 co…
13 Dec 2022 To cttee Letter from the Chief Secretary to the Treasury to the Chair dated 8 December 2…