Source · Select Committees · Public Accounts Committee
Recommendation 5
5
It is unclear how the Department is reconciling tensions between devolved responsibilities and administering local...
Recommendation
It is unclear how the Department is reconciling tensions between devolved responsibilities and administering local growth funding on a UK-wide basis. Economic development is a devolved power but the Department is administering the Levelling Up and UK Shared Prosperity funds (UKSPF) on a UK-wide basis. We Local economic growth 7 are concerned that decisions were taken without sufficient consideration of devolved governments’ priorities. These include on how much to allocate, what the criteria were, when to open and close bidding, and how to score bids,. The Department assures us that it is expecting significant collaboration with the devolved governments and with the local bodies responsible for delivery. However, it has not yet convinced us that that this collaboration will be effective in ensuring that priorities of the devolved administrations are adequately taken on board. Recommendation: The Department should set out: • How it will ensure that the processes for awarding funding for future rounds of Levelling Up Fund and the UKSPF will address the prioritisation of devolved nations. • How it plans to ensure ongoing engagement with the devolved administrations.
Government Response
Not Addressed
HM Government
Not Addressed
5.1 The department agrees with the Committee’s recommendation. Target implementation date: To be confirmed 5.2 Although the government agrees with the Committee’s recommendation, it disagrees with the conclusion it is based on. 5.3 The department’s priority is delivering effective investment in all parts of the UK. For LUF, the round two prospectus confirms across both rounds at least 9% of the total allocation will be set aside for Scotland, 5% for Wales, and 3% for Northern Ireland, subject to a suitable number of high-quality bids coming forward. The Prospectus and Technical Note set out how applicants in Scotland, Wales and Northern Ireland should set out how bids align with, or complement, wider public service investments made available by the devolved administrations. Where appropriate, the department will seek input from devolved administrations on projects to be delivered in their geographical areas, including on deliverability and alignment with existing provision. 5.4 UKSPF funding has been fully allocated for 2022-23 to 2024-25. Recognising individual differences between England, Scotland, Wales and Northern Ireland, the allocation method was adapted for each part of the UK. The department set out a methodology note explaining how it ensured funding going to Scotland, Wales, and Northern Ireland meets funding received under European Structural Funds. Future UKSPF funding is a matter for Spending Review 2024. 5.5 The department delegated delivery of UKSPF in Scotland and Wales to local authorities; and working closely with local partners in Northern Ireland. This means local people will play a leading role in prioritising and tailoring UKSPF to local needs. 5.6 To ensure there is a platform to discuss issues of mutual interest within the department's portfolio, officials worked with devolved governments to establish an Interministerial Group, which first met on 24 May. In addition, the inaugural meeting of the Interministerial Standing Committee in late March was chaired by the department’s Secretary of State and attended by the First Ministers of Scotland and Wales and intergovernmental relations ministers, to discuss strategic and cross-cutting elements of levelling up.