Source · Select Committees · Housing, Communities and Local Government Committee
Recommendation 16
16
Rejected
DLUHC's decision to abandon IMD and use unclear data metrics is problematic.
Conclusion
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 three. We acknowledge that the DLUHC changed its use of metrics in the second round of the Levelling Up Fund. Nevertheless, it is still not clear what data sets were used for the amended process in round two or why they sought such a complicated process for round one, when local authorities have ample access to data and arguably understand their areas best. (Paragraph 63) Funding for Levelling Up 39
Government Response Summary
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 available on gov.uk, including a proprietary commercial vacancy rate made public.
Government Response
Rejected
HM Government
Rejected
The IMD does not represent a ‘one size fits all’ solution to measuring need - not all of the variables it considers are relevant to the particular interventions we want to support through the Levelling Up Fund. As set out in the methodology note published on gov.uk, the indicators used in the Index of Priority Places were chosen to closely align with the type of interventions the Levelling Up Fund is designed to support. The methodology note for the second round explains the changes to the Index from the first round. The published model on gov.uk provides links to the data sets used to construct the index and notes on how to access them. Most of the data sets used to construct the index are obtained from Government statistical releases or statistical releases from the devolved administrations, which allows for a consistent assessment of need of local authorities within each nation. Data sets made available by the Local Government Association are compiled from these statistical releases. The Department therefore elected to gather the data from the original sources. Commercial Vacancy Rates were obtained from a propriety data source, however the department paid for these to be made publicly available.