Source · Select Committees · Public Accounts Committee
Recommendation 7
7
The impact of Covid-19 is likely to mean that some towns’ plans for how best...
Recommendation
The impact of Covid-19 is likely to mean that some towns’ plans for how best to spend the money will need to be revisited. We are very concerned about the short-term and long-term effects of Covid-19 on towns, and high streets in particular. The Department tells us that its guidance steers towns to think carefully about investments that increase retail space in towns, given that Covid-19 may have accelerated some of the challenges for the high street. We are also concerned that Covid-19 will reduce towns ability to raise match funding for its plans. The Department says that it will help towns to meet the challenges of Covid-19 by giving towns with exceptionally good and well-evidenced plans more than £25 million, the original maximum funding limit, and that towns that have been more adversely affected by Covid-19 may have a greater likelihood of securing funding. It also plans to bring forward £80 million of the Towns Fund with each town receiving between £500,000 and £1 million. We remain concerned though that as the pandemic continues to affect towns, some will find that their plans need to change to respond to new challenges, and the Department needs to be alive to this. Recommendation: In its Treasury Minute response, the Department should set out how it is responding to the ongoing impact of Covid-19 on towns and their ability to implement their proposals for spending the funding and on the timeline for releasing funding. 8 Selecting towns for the Towns Fund 1 The selection process
Government Response
Not Addressed
HM Government
Not Addressed
7.1 The government agrees with the Committee’s recommendation. Recommendation implemented 7.2 The department has been very aware of the impact of COVID-19 on the delivery of the Towns Fund. Indeed, the type of interventions funded through the Towns Fund have proved to be prescient – COVID-19 has accelerated and magnified existing market forces in many ways, making investment of this kind all the more important. 7.3 That is why in September 2020, all 101 towns identified for a Town Deal received accelerated funding to help address the immediate additional challenges caused by Covid-19. Payments totalling £81.5 million were made that month. 7.4 The department know that as towns seek to recover from the crisis, Town Deals may take on additional purpose. The impact of COVID-19 has been particularly acute for those areas with the vulnerabilities and challenges that the Towns Fund was established to address. The focus has not changed, but the funding that has been made available has become even more important. That is why the Department has made adjustments in recognition of this from the outset of the pandemic, including allowing towns additional time to develop and submit their Town Investment Plans and also encouraging Towns to review their plans to take account of changing circumstances and emerging priorities. The department continues to monitor the situation and where needed will provide towns with additional support. 7.5 All towns have been asked to outline in their proposals how they have considered the ongoing impact of COVID-19. The department has a package of support in place from the Town’s Fund delivery partner (Arup and consortium). They are providing guidance to towns and joining them up where they face shared challenges, as well as providing additional support to those with the greatest challenges.