Source · Select Committees · Public Accounts Committee
Recommendation 13
13
Rejected
Department changed Levelling Up Fund rules mid-process, excluding successful Round 1 bidders without notice.
Conclusion
We questioned the Department on why it changed the rules for the Levelling Up Fund between the rounds. It told us that having seen how many bids were submitted for Round 2 of the Levelling Up Fund, ministers decided that local authorities that were successful in Round 1 would not be awarded any funds in Round 2.29 This decision was made during the assessment process and was not communicated in advance.30 The Department said it understood the frustration this caused by not taking this decision ‘up front’.31 The NAO reported that this decision directly affected 55 local authorities who had received funding in Round 1 and had also bid in Round 2.32
Government Response Summary
The government disagrees with the committee's implied criticism about changing rules for the Levelling Up Fund between rounds without prior communication, stating that future programme rules are a matter for Ministers. It refers to the new Funding Simplification Doctrine which advocates for allocation over competition for future funds, but this does not address the specific past issue raised by the committee.
Government Response
Rejected
HM Government
Rejected
The government agrees with the Committee’s recommendation. Recommendation implemented 3.2 The Funding Simplification Doctrine that came into force at the start of 2024 covers all new funding to local government and consists of four principles: • departments should consider whether creating a new fund is necessary or whether funding could instead be channelled through existing structures; • departments should consider their choice of distribution methodology and consider allocating funding, as opposed to defaulting to competition; • the delivery model of a new fund should be tested with local authorities, the Local Government Association, or equivalent bodies in Scotland, Wales, and Northern Ireland. • departments should demonstrate that they have minimised the data and reporting burden created by the new fund, whilst not compromising the evidence they collect to monitor value for money. 3.3 The department has incorporated the Doctrine into its policy design and decision-making process and has shifted away from a competition by default approach. The government disagrees with the Committee’s recommendation. 3.5 Decisions around the rules of future programmes are a matter for Ministers at the time.