Recommendations & Conclusions
4 items
2
Recommendation
Fifth Report - Local economic growth
Not Addressed
The Department does not yet have a strong understanding of what works for local growth but we welcome its belated commitment to evaluating local growth interventions. It is disappointing that, despite billions spent on local growth over many decades, government does not yet have a strong understanding of what works. …
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The Department does not yet have a strong understanding of what works for local growth but we welcome its belated commitment to evaluating local growth interventions. It is disappointing that, despite billions spent on local growth over many decades, government does not yet have a strong understanding of what works. In 2019, the committee highlighted how the Department did not understand what impacts its £12 billion Local Growth Fund had had on local economic growth and yet had also decided not to evaluate it. While we are pleased that it has now reversed that decision, designing an evaluation at the end of a scheme is not ideal. Activities, such as establishing a baseline against which to assess impact, will be extremely difficult. It is inherently complicated to understand the impact of place-based policies and central government funding is only one part of the wider levelling up agenda. But understanding what part these policies play will be essential to ensuring continued improvement and value for money. It is encouraging that evaluation features prominently in government’s Levelling Up White Paper and that the Department is committed to improving its track record in this area, but it is disappointing that it has not yet developed the promised overarching monitoring and evaluation framework for local growth. 6 Local economic growth Recommendation: The Department should update us on progress with its local growth evaluation commitments (including for the Local Growth Fund) and set out how it intends to feed evaluation findings back into its ongoing local growth activity and to the wider levelling up agenda.
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Government response AI summary
The response does not address the recommendation of updating on progress with local growth evaluation commitments, and instead discusses internal performance measures and consultations with the sector.
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HM Treasury
1
Conclusion
Fifth Report - Local economic growth
Not Addressed
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Levelling Up, Housing & Communities (the Department), HM Treasury, the Department for Transport and the Department for Business, Energy & Industrial Strategy about Supporting local economic growth.1
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On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Levelling Up, Housing & Communities (the Department), HM Treasury, the Department for Transport and the Department for Business, Energy & Industrial Strategy about Supporting local economic growth.1
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Government response AI summary
Acknowledges the report and the evidence session, no commitment to action.
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HM Treasury
8
Conclusion
Fifth Report - Local economic growth
Not Addressed
LEPS, the business led-partnerships that have been an important part of the local growth landscape over the past decade, will take a back seat going forward as government delivers more funding through local authorities. The Department told us it is encouraging the integration of LEPs and their business boards into …
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LEPS, the business led-partnerships that have been an important part of the local growth landscape over the past decade, will take a back seat going forward as government delivers more funding through local authorities. The Department told us it is encouraging the integration of LEPs and their business boards into mayoral combined authorities, the Greater London Authority and county deals where they exist. We heard they will continue to play a role where devolution deals are not in place, but the Department did not expand on what that role would be.22 The Department told us that Levelling Up Directors within the Department will improve coordination between central and local government. They will sit in the department alongside area-based teams, though the Department provided no clarity on when they will be in place, indicating only that they would be “advertising for the roles soon”. The Department described an important role for them in: strengthening the Department’s presence in different parts of the country; championing local government within central government and vice versa; contributing to discussions around performance measures; and mediating between local authorities and the Department.23 It did not provide further clarity on the day to day role. Devolved responsibilities
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Government response AI summary
The government agrees but responds by detailing its efforts to consolidate local growth funding through the LUF and UKSPF, and its intention to set out a plan for streamlining the wider funding landscape this year. It also mentions a new Levelling Up Cabinet Committee, but …
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HM Treasury
16
Conclusion
Fifth Report - Local economic growth
Not Addressed
According to its business case, the Department expected to allocate £720 million of the total £4.8 billion budget in the first round of the Levelling Up Fund. In October 2021, government announced 105 successful bids totalling £1.7 billion for the first round.47 The Department told us that there had been …
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According to its business case, the Department expected to allocate £720 million of the total £4.8 billion budget in the first round of the Levelling Up Fund. In October 2021, government announced 105 successful bids totalling £1.7 billion for the first round.47 The Department told us that there had been a large number of good-quality bids and, as part of the routine course of the spending review, the Chancellor thought it would it appropriate to fund £1.7 billion work of projects in the first round.48 The Department and HM Treasury were unsure whether bidders had any indication how much government was intending to award in the first round of funding but HM Treasury told us that the figure £720 million had never been in the public domain.49 We expressed some concern that local authorities would have had to decide whether to bid in the first round or to wait to later rounds and that the greater the money paid out in the first round, the smaller the amount available for those that chose to hang back. We noted the risk that this decision may have been more difficult for local authorities not familiar with these particular bidding processes, such as those in the devolved administrations.50
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Government response AI summary
The government explains the initial planning assumptions and defends its robust assessment process for the Levelling Up Fund's first round, including spending profiles. However, it does not directly address the committee's concern about the lack of clarity for bidders on total funding available per round …
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HM Treasury