Source · Select Committees · Public Accounts Committee
Recommendation 18
18
Accepted
Local authorities permitted 30% delegated flexibility for project and budget changes, subject to reporting.
Conclusion
The Department told us that there are a lot of delegated flexibilities. For example, local authorities can move money between years, without seeking approval from the Department.45 The NAO reported that part of the simplification plan was to allow local authorities to make changes within individual programmes up to a threshold of a 30% change to agreed project outputs and outcomes, or changes to project timetables. For example, reducing the amount of new open space or length of a new cycle path, or swapping from providing business support to supporting jobseekers.46 There was also the same 30% flexibility threshold to move spending between financial years without seeking departmental approval.47 The Department wrote to us after the evidence session to clarify that while a local authority does not have to seek permission to make changes up to the 30% threshold, it does need to let the Department know through its regular reporting. It told us that as of December 2023, its latest reporting period, seven places have made changes within the 30% threshold for Town Deals and 29 places have made changes within the 30% threshold for the Levelling Up Fund.48 Learning what works
Government Response Summary
The government confirms its implementation of programme-wide measures for flexibility, including the Funding Simplification Doctrine and the UK Shared Prosperity Fund. It commits to continue improving funds and speeding up decision-making for Project Adjustment Requests by allowing S151 Officers to verify value for money.
Government Response
Accepted
HM Government
Accepted
The department has implemented several programme-wide measures to support local authorities with managing changing project costs. This included providing greater flexibility through a project adjustment request (PAR) process; funding to improve capacity and capability; and reducing complexity to simplify the funding landscape. These commitments are set out in the Funding Simplification Doctrine. The UK Shared Prosperity Fund provides local authorities more flexibility with a three-year allocation that they can spend on local priorities or projects. Its mix of revenue and capital funding can be used to support a wide range of interventions to build pride in place and improve life chances. These can complement capital projects as well as existing business or employment and skills provision. The department continues to improve its current suite of funds, for example speeding up decision making required for a Project Adjustment Request through allowing S151 Officers (local authority Chief Financial Officers) to verify that projects remain good value for money, rather than requiring checks by analysts in the department.