Recommendation 4

We welcome the intentions to simplify the funding system, but the Department has more to do to implement its plans. The Department published its plans for funding simplification in Summer 2023. This plan covers the whole of government and aims to simplify the approach to, and number of, funding streams available to local authorities. The plan includes, giving local authorities more flexibility in managing their projects and reducing the burden of data collection on local authorities. Currently, the Department collects over 400 indicators across 13 funds but recognises this is too much. It has established what it calls ‘pathfinder 8 Levelling up funding to local government simplification pilots’ that allow ten local authorities who are receiving money from multiple funds to pool these funds so they can manage their individual projects as one. However, it is yet to draw any conclusions from this initiative. Recommendation 4: In its Treasury Minute response, the Department should update us on the progress with simplification including its work with other government departments and progress with the ten simplification pilots. In the future, it should update the Committee by letter once every six months of further developments in this regard, along with the costs and benefits (both to the Department and local authorities) arising from greater simplification.