Source · Select Committees · Public Accounts Committee

Recommendation 19

19 Accepted

Department's learning from pathfinder pilots and project flexibility remains in "early days".

Recommendation
During our evidence session we questioned the Department about how local authorities were supported to deliver their projects and what it is learning from this.49 As part of its simplification plans the Department told us it has allowed ten local authorities who are receiving money from multiple funds to each pool their funds so they can manage their projects collectively.50 We queried what the Department had learnt from these so- called pathfinder pilots. It told us it was still relatively early days for the pathfinders, but it planned to publish what it has found later this year. The Department also hoped to use 42 Q 84 43 Q 55 44 Q 91 45 Q 50 46 C&AG’s Report Para 1.16 footnote 8 47 C&AG’s Report 1.16 48 Correspondence from Permanent Secretary, Department for Levelling Up, Housing and Communities, dated 29 January 2024 49 Qq 10, 16, 89 50 Q 91; C&AG’s Report 1.17 16 Levelling up funding to local government the findings to inform its approach to the next spending review.51 Similarly, when the Department talked about the 30% project flexibility, it told us it was ‘early days’ but it would consider this policy and any learning from it in conjunction with the pathfinders.52
Government Response Summary
The government states it has reflected on lessons learned from pathfinder pilots and is moving towards a simpler funding system. It commits to publishing an interim evaluation of the pilot by year-end and a full evaluation in 2026.
Government Response Accepted
HM Government Accepted
The department has reflected on lessons learned through the simplification pathfinder pilot and stakeholder feedback regarding the burden on local authorities. It is moving to a funding system which has a simpler and more streamlined landscape, increased flexibility for local authorities and partners and longer-term funding settlements. Since publishing the Funding Simplification Plan, all ten pathfinder pilots have been agreed and Funding Simplification Doctrine published. An interim evaluation of the pilot will be available before the end of the year, with a full evaluation published in 2026. The department will publish the evaluation reports for the pathfinder pilot when available.