Source · Select Committees · Public Accounts Committee

Recommendation 10

10

We heard from the Department that its officials had assessed each town against three qualitative...

Conclusion
We heard from the Department that its officials had assessed each town against three qualitative criteria using the knowledge of its area-based teams, rather than consulting directly with local stakeholders. The Department argued that it gave more weight to the quantitative criteria in its assessment, and that its area-based teams have a lot of contact, engagement and dialogue with local areas, which means that their views are informed.21 Similarly, we heard that Ministers relied on the Department’s area-based teams rather than consult with local stakeholders, including Local Enterprise Partnerships and local MPs.22 Of particular concern is that directly elected mayors were not consulted, despite officials specifically recommending to Ministers that they do so.23 Ministers explicitly rejected the recommendation, deciding they wanted to make decisions themselves without seeking local views.24 The Department clarified that Ministers speak regularly with mayors but that dedicated engagement on the Towns Fund did not take place.25
Government Response Not Addressed
HM Government Not Addressed
3.2 As the Committee will know, the department and Ministers engage regularly and widely with local and regional representatives, including Members of Parliament, to understand their priorities for their local areas and communities. 3.3 Specifically in relation to the Towns Fund, the department has already set out, prior to the Committee's recommendations, expectations and plans for Town Deal Boards and for community engagement and local and, where appropriate, regional representation on boards. 3.4 Indeed the model of Towns Deal Boards offers a significantly more open and transparent way of developing and agreeing plans for growth funding in a local area than is traditionally seen. Town Boards give a significant voice to people from the local area and allow a far wider range of stakeholders to inform a town’s plans as a result – an approach government feels is crucial to ensuring that investment can better match the needs of the communities it is destined to support. 3.5 Expectations for Town Deal Board membership were set out in the Towns Fund Prospectus (November 2019) and Further Guidance (June 2020), recommending a mix of representatives from across the public, private and community sectors. Regional teams and our delivery partners then worked with Town Deal Board’s on diversity, best practice and mandatory compliance. 3.6 The department has subsequently assessed Town Deal Board governance for all towns that have submitted their Town Investment Plans. 3.7 The department also specified that Town Investment Plans should include detail of consultation with local residents. The level and quality of engagement with community groups and the alignment and involvement of key bodies are both rigorously assessed. Towns must provide a stakeholder engagement plan in advance of signing Heads of Terms agreements.