Source · Select Committees · Public Accounts Committee
Recommendation 14
14
Rejected
Levelling Up Fund Round 3 allocation disadvantaged local authorities unable to bid previously.
Conclusion
Round 3 of the Levelling Up Fund was run as an allocation to some of the unsuccessful bids that were submitted in Round 2. We challenged the Department that this disadvantaged some local authorities who might have wanted to submit a bid in Round 2 but decided not to, because they did not think they would be able to deliver their projects within the Round 2 timetable. They could have achieved it within the Round 3 timetable, but they did not get a chance to bid, because Round 3 was announced without any bidding.33 We were told by the Department that there was still a role for competition, but following feedback from local authorities that competitions required significant effort, the Department felt it was more appropriate to restrict the allocation of Round 3 funding to unsuccessful Round 2 bids, rather than run another open bidding round.34 The Department accepted this would have consequences for local authorities but on balance ministers had taken the view that the chosen approach was the better way forward.35
Government Response Summary
The government disagrees with the committee's implied criticism regarding the Round 3 Levelling Up Fund allocation, stating that decisions on rules for future programmes are a matter for ministers. It defends the approach of allocating funds to unsuccessful Round 2 bids as a way to reduce burdens and maximise efficiency, moving away from competition by default.
Government Response
Rejected
HM Government
Rejected
The department is putting this plan into action. For example, it has taken a new approach to the third round of the Levelling Up Fund, moving away from competition and making use of the large number of high-quality bids submitted in Round 2. This reduces burdens and maximises efficiency. 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.