Source · Select Committees · Public Accounts Committee
Recommendation 27
27
The new Secretary of State told the Housing, Communities and Local Government Committee that he...
Conclusion
The new Secretary of State told the Housing, Communities and Local Government Committee that he recognises there are too many funding pots, with potentially overlapping criteria. He concluded “There needs to be some simplification and rationalisation” of funding arrangements and has asked the Department to lead on this.107 When we asked the Department specifically about net zero and levelling up the Department told us it had been asked to look at whether there is a case to simplify and rationalise both the processes around levelling up funds and the pots themselves. Its aim for levelling up was to move to a system where funding was divided into two funds, one focused on infrastructure and the other focused on people.108
Government Response
Not Addressed
HM Government
Not Addressed
7.2 The government agrees with the Committee’s recommendation. The department has an established policy to rationalise funding for local government so that local authorities can make decisions based on local priorities. There is, however, a balance to be struck between giving flexibility and ensuring that the money will be used as intended and effectively. There are instances where ringfencing or bid-based grants are required, for example when we need detailed data from local authorities. 7.3 There is work taking place in both local growth and local government funding spaces to tackle this issue. The department is considering options to simplify grants under section 31 of the Local Government Act 2003 that fall outside of the Local Government Finance Settlement. Additionally, the department is looking at options to streamline the funding process for grants, such as the Levelling Up Fund and the UK Shared Prosperity Fund. 7.4 From the perspective of local authorities, any measures to simplify the local government finance system will be closely linked to local growth ambition on wider funding simplification. Measures across both areas are complementary in reducing the administrative burdens and support the delivery of wider government levelling up ambitions. 7.5 The government’s approach will be to deliver a more transparent, simpler and accountable system, reducing the number of grants whilst also considering options to limit the creation of new grants. We will work closely with local authorities to consolidate in the most appropriate way.