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
1 Conclusion Sixth Report - Funding for Levelling Up Rejected

DLUHC lacks clear oversight and understanding of Levelling Up funding contributions.

We are yet to see any evidence of sustained joint working between Departments, and the coordination of the various funding pots they control, which are intended to contribute towards the ambitions of the Levelling Up White Paper. The Department for Levelling Up, Housing and Communities is responsible for overseeing the …

Government response. The government explicitly disagrees with the committee's conclusion, stating that Levelling Up is a whole-of-government mission where all spending contributes. It highlights extensive joint working across departments and with local actors through various initiatives, including devolution deals, partnerships, and Investment …
Ministry of Housing, Communities and Local Government
2 Conclusion Sixth Report - Funding for Levelling Up Rejected

Levelling Up funds fail to replace significant reductions in local authority revenue.

Local authorities’ revenue funding has reduced significantly since 2010. Levelling up funds generally do not replace grant funding because first they are capital not revenue and; second, because they cover specific projects rather than necessarily covering the priorities of the local authorities.

Government response. The government rejects the committee's conclusion, stating that local government's Core Spending Power has seen a real terms increase between 2019-20 and 2023-24. It clarifies that Levelling Up funds are not intended to duplicate core funding and cites the UKSPF …
Ministry of Housing, Communities and Local Government
3 Recommendation Sixth Report - Funding for Levelling Up Rejected

Require Government departments to identify and DLUHC to clarify Levelling Up funding contributions.

If Levelling Up is to remain the Government’s flagship policy, as it has described it, its delivery must involve greater co-ordination and oversight across Government where applicable. The Government must get to grips with setting out which funding streams are materially contributing to the Levelling Up policy. All Government departments …

Government response. The government explicitly rejects the recommendation for greater co-ordination and oversight and for setting out specific funding streams contributing to levelling up, arguing it's a whole-of-government mission where such categorisation would be misleading. They assert that sustained joint working already …
Ministry of Housing, Communities and Local Government
12 Conclusion Sixth Report - Funding for Levelling Up Rejected

Additional metrics for Levelling Up Fund applications undermined trust and transparency.

A further concern regarding the distribution of competitive funding was the additional metrics for success applied to once applications had closed in round two of the Levelling Up Fund. This was signally unhelpful for perceptions of trust and transparency and leaves the Government open to criticisms that it has not …

Government response. The government denies that additional metrics were applied after applications closed in round two, stating the decision-making framework and all five wider considerations were outlined in the published Prospectus and Technical Note prior to submissions. They assert a robust and …
Ministry of Housing, Communities and Local Government
16 Conclusion Sixth Report - Funding for Levelling Up Rejected

DLUHC's decision to abandon IMD and use unclear data metrics is problematic.

The Index for Multiple Deprivation (IMD) has for a long time been widely considered to be the most efficient way of determining ‘need’. As such, we do not agree with the DLUHC’s decision to move away from the use of the long established IMD to determine priority areas one to …

Government response. The government rejects the premise that IMD is a 'one size fits all' solution, stating their chosen indicators align better with Levelling Up Fund interventions. They clarify that methodology notes and links to data sets for both rounds are publicly …
Ministry of Housing, Communities and Local Government
23 Conclusion Sixth Report - Funding for Levelling Up Rejected

UK Shared Prosperity Fund consistently reported as insufficient replacement for EU funding

We have heard from representatives from the Welsh and Scottish Governments, officials from Northern Ireland, and from English local authorities, all of which have said that the UK Shared Prosperity Fund (UKSPF) was not a sufficient replacement for previous European funding. However, the DLUHC has assured us that the UKSPF …

Government response. The government rejects the conclusion that the UK Shared Prosperity Fund is not a sufficient replacement for EU funding, stating that total UK-wide funding will at least match previous EU structural fund receipts by 2024-25. They explain their calculation methodology …
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…