Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 10
10
Acknowledged
Paragraph: 39
Competitive bidding risks distorting local priorities to align with Whitehall's perceived preferences.
Conclusion
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 Summary
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 support for joint bids, affirming that local priorities are tested in funding assessments.
Paragraph Reference:
39
Government Response
Acknowledged
HM Government
Acknowledged
Funding competitions can be an important tool for driving value for money and identifying the best projects for delivering local outcomes. We recognise in the simplification plan which was published on 4 July 2023 that bidding into multiple parallel competitions can place an administrative burden on local authorities. The funding simplification doctrine will balance our approach to distributing discretionary funding to local government. Where a competition takes place, there will be a clear rationale for why it delivers value for money. DLUHC will work with local authorities to ensure that any competitive funding is distributed in a fair and transparent way, with resource and support given where appropriate to encourage collaboration across local government. As part of the Levelling Up Fund, we also issued a £125,000 capacity grant to all local authorities most in need in England (category one local authorities), and to all local authorities in Scotland, Wales and Northern Ireland. This was to support local authorities to develop high quality bids to the Levelling Up Fund. We agree that it is important that Government funding is focussed on local priorities – this is something we tested as part of our strategic fit assessment of Levelling Up Fund bids. We agree with the committee that collaboration between neighbouring communities and local authorities can be beneficial. That is why in both the first and second round of the Levelling Up Fund, local authorities have been able to submit joint bids in collaboration with neighbouring authorities, for projects which will provide benefits to communities across administrative boundaries. Examples of successful joint bids can be seen in the £40m ‘Multiversity’ project between Blackpool and Wyre councils, or the £20m ‘Living Lab’ project between Peterborough City Council and the Cambridgeshire and Peterborough Combined Authority.