Source · Select Committees · Housing, Communities and Local Government Committee

Recommendation 17

17 Deferred

Outline transparent funding allocation process for local authorities, moving away from competitive bidding.

Conclusion
The Ministry must outline how it plans to allocate funding to local authorities in future investment programmes and move away from competitive bidding between councils. Any allocation must use a transparent process, based on clear criteria, and be focused on achieving desired outcomes. (Recommendation, Paragraph 66)
Government response summary AI-generated
The government described current funding allocations for the Household Support Fund, Discretionary Housing Payments, and the Local Authority Housing Fund, along with future considerations for Local Housing Allowance rates, without outlining a general transparent and outcomes-based process for future investment programmes to replace competitive bidding.
Summary of the government's response below — read the verbatim text to verify.
Government Response Deferred
HM Government · verbatim extract Deferred
34. The Government has consolidated MHCLG’s Levelling Up Fund, Town Deals and Simplification Pathfinders Pilot Funds. The new Local Regeneration Fund isa significant capital commitment of more than £1 billion over the next two years and devolves power to local authorities, giving them access to a single pot of capital funding, with less reporting and more flexibility to adapt schemes to local needs, without asking central government’s permission. 35. We will continue to work to end wasteful competitive bidding and prioritise allocative funding for future grant schemes, which sits alongside our continued efforts to reduce the administrative burden these schemes impose on councils. Local growth funding announced at the Spending Review reflects this commitment. These new funds, including the local growth funding announced for MSAs in the North and Midlands, and the communities funding announced for 350 places, are allocative. 36. As a matter of course, future allocations for investment programmes will be published on gov.uk, alongside a methodology note that transparently sets out how allocation metrics relate to the desired outcomes.
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