Source · Select Committees · Public Accounts Committee
Recommendation 25
25
How the impact of Covid-19 will influence decisions about how the Department allocates the Towns...
Conclusion
How the impact of Covid-19 will influence decisions about how the Department allocates the Towns Fund is unclear. Whether towns that have been adversely affected by Covid-19 will have a greater likelihood of selection, or whether events may mean that some of the plans set out in winning bids are now less of a priority, is still to be determined. The Department told us 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.50
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.