Source · Select Committees · Public Accounts Committee
Recommendation 5
5
We are concerned that towns may not have the capacity to deliver their plans and...
Conclusion
We are concerned that towns may not have the capacity to deliver their plans and spend the money well. The Department says that the towns most in need of investment would have been disadvantaged in a competitive bidding process because of a lack of leadership, resources or experience of dealing with government departments. The Department made £14 million available to towns to help them to develop their investment plans. The Department also made £8 million available for consultancy support to help towns with things like project management and valuing Selecting towns for the Towns Fund 7 real estate. While this funding may help towns to develop their plans, if these towns are indeed the ones least able to bid for funds then it must also raise concerns about their capacity to deliver their plans and spend the money well. The Department says that it is working at pace to agree the funding that will be available for the 13 towns in the first cohort but warns that it could take up to 12 months to agree business cases and issue final approvals before projects can begin. The Department has profiled the funding over the next four financial years but does not know yet whether the profile it has developed aligns with towns’ individual investment plans. Recommendation: From the end of March 2021, the Department should write to the Committee with annual updates to provide assurance that it is spending the money well. The Department’s updates should demonstrate that its due diligence processes have included an assessment of towns’ capacity to successfully deliver their plans.
Government Response
Not Addressed
HM Government
Not Addressed
5.1 The government agrees with the Committee’s recommendation. Target implementation date: April 2021 5.2 Local areas understand best what they need to grow and thrive. Nevertheless, the department shares the Committee’s concern that some areas might need additional support to fully develop their plans and have taken steps from the outset to address this. Since launching the Towns Fund, the department has worked directly with towns, supporting them as they established Town Deal Boards and developed their Town Investment Plans. Every town has a named contact in the department to provide ongoing guidance and support, and each local area has received capacity funding to develop their plans. The Towns Fund Delivery Partner, Arup and consortium, have also provided additional support. 5.3 As part of the established investment process for Town Investment Plans, the department carries out a thorough review of town’s capacity to deliver, and the deliverability of the plan itself. All projects are also subject to full business case assessment, normally carried out by the lead local authority. 5.4 Even with the best of these endeavours some places may continue to struggle, and the department will continue to take further steps to support these areas. Through this ongoing support, the department confident that towns can make a success of Town Deals and create a better future for their communities. 5.5 The department will provide an annual update to the Committee on the progress of the Towns Fund, including an assessment of towns’ capacity to successfully deliver their plans.