Recommendation 19

We questioned the Department on how it is selecting and prioritising projects for the NHDF. The Department explained that funding decisions for individual projects are based on a range of criteria including deliverability, affordability, and strategic fit with government policy and the local area’s priorities.44 It added that it is oversubscribed with projects coming forward and so it must be “hard-nosed” about whether the costs are realistic.45 The Department told us that for loans it will look at ability to repay and risk ratios.46 It acknowledged that the process is complex and it tries to look at all aspects of the criteria and then make a decision.47 39 Q 44 40 Q 43 41 Q 43 42 C&AG’s report, para 4.10 43 C&AG’s report, para 4.12 44 Qq 26 and 28 45 Qq 28 and 40 46 Q 28 47 Q 28 13