Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 11
11
Accepted
Paragraph: 40
Encourage collaboration between communities and local authorities in competitive bidding processes.
Recommendation
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 that competitive bidding does not pit communities or local authorities against one another for finite resources.
Government Response 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 provisions for joint bids in the Levelling Up Fund.
Paragraph Reference:
40
Government Response
Accepted
HM Government
Accepted
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.