Source · Select Committees · Public Accounts Committee
Recommendation 21
21
Acknowledged
The Bank has not reached a decision on how it will fund its advisory function.
Conclusion
The Bank has not reached a decision on how it will fund its advisory function. Decisions on funding will be important given the Bank’s expectation that demand will be significant, and that it will not have the resource to cover all requests effectively.57 The Bank told us it has considered models for charging local authorities to use the advisory service but as things stand, it does not intend to charge directly. It told us this was because local authorities are already resource-constrained, and it is more likely that the Bank’s interventions will be successful if it can help local authorities as “cheaply and efficiently” as possible. The Bank indicated that the revenue generated from its local authority lending will probably end up paying for the advisory function.58 Engagement with government departments
Government Response Summary
The Bank will share the key insights developed through the pilots and its engagement with a range of local authorities to date in Spring 2023, and is already engaged with a range of local authorities for its next wave of advisory work, to be announced shortly.
Government Response
Acknowledged
HM Government
Acknowledged
4.1 The government agrees with the Committee’s recommendation Target implementation date: Spring 2023 4.2 The Bank welcomes the Committee’s recommendation and would be pleased to provide the requested information later in Spring 2023 after completion of the pilot projects in Bristol, Greater Manchester, and West Yorkshire Combined Authority. These pilots play an important role in helping the Bank develop its offering for local authorities, a key part of the Bank’s remit, and ensures that its support is appropriately reflective of local authority needs. 4.3 The Bank will share the key insights developed through the pilots and its engagement with a range of local authorities to date. It is already engaged with a range of local authorities for its next wave of advisory work, to be announced shortly. Recognising that the needs of different size local authorities will vary, the Bank has carefully considered how it can deliver effectively across this spectrum. For instance, it already offers advisory support to smaller local authorities through its partnership with the Green Heat Network fund and plans to continue this model with future grant programmes. This will allow government to leverage investment in local infrastructure and ensure that projects are set up for success.