Recommendation 6

HM Government Accepted

We recognise the barriers identified and set out by the Committee and accept that these have been further exposed by current challenges. That said, local communities and stakeholders and Local Authorities are already being empowered to take a leading role in decision-making both for funding, and wider place-based initiatives, in the cultural, heritage, creative and visitor economy and wider sectors. As set out in the Levelling Up White Paper, the Government intends to set out a plan for simplifying local growth funding. By streamlining the landscape, we will reduce inefficiency and bureaucracy giving local leaders the flexibility they need to deliver for local economies. The Committee highlights the Community Ownership Fund as an example where communities have already been given a greater role in decision-making. The Community Ownership Fund helps communities across England, Scotland, Wales and Northern Ireland to take ownership of assets at risk of closure. The fund works directly with local community groups, encouraging them to identify assets of local significance through engagement with a wide spectrum of the community. Applicants typically work with parish councils, Local Authorities, and other community groups, and must demonstrate accountability to their local community in their application in order to be successful for funding. The Community Ownership Fund has appointed a Delivery Support Provider to support applicants to apply and run their projects successfully. The Provider operates ‘on the ground’ in communities, working directly at a hyper-local level. An important part of the Provider’s role includes the facilitation and promotion of peer networks between groups. As these networks develop, they will enhance and strengthen the role of local communities and stakeholders in the development of future bids. The Fund is looking at ways to simplify and streamline both the application and decision- making process, without compromising on the standards required for receiving funding. The fund’s evaluation strategy includes a review of these processes, the way funding has been allocated, and the impact on local areas. This will include recommendations relevant to the design of future interventions, such as alternative models of decision-making, and opportunities for greater local participation. In addition, within the cultural and creative sectors specifically, localised decision-making is also already employed by a number of DCMS Arms-Length Bodies. For example, the Committee highlights the Arts Council England’s Area Councils model. Arts Council England’s Area Councils are an important element of their governance. They are made up of stakeholders from across the geography that the Arts Council England Area covers, bringing their expertise and insights to inform Arts Council England’s strategy and activity. As the Committee noted, Arts Council England reserves a number of places for serving elected Local Authority members. Local government is Arts Council England’s most important strategic and delivery partner, not just as a co-investor but also as the democratic leader and convener for place. Each Area Council is made up of the chair, who is also a member of Arts Council England’s National Council; nine members appointed by Arts Council England; and five local government representatives. These are normally appointed following an open call for local government representatives to sit on the area council, with decisions made by Arts Council England. Arts Council England also seeks to take account of public opinion in developing its strategic priorities. This included significant public consultation to develop their ten year strategy. Arts Council England also seeks to engage specific groups in the development of its policy, including piloting a Youth Advisory Board.24 In addition, the National Lottery Heritage Fund also employs a devolved decision-making model. In line with their current Strategic Funding Framework 2019–2024, the Fund have further devolved decision making structures on funding to a regional level. Most grants below £5m are determined by local staff and committees in regions, and countries in other parts of the UK. At present 82% of funding is decided at a regional level, to respond to local needs. The National Lottery Heritage Fund intends to continue working via this devolved-decision making model, as set out in their new strategy 2023–33, which is due to be published later this year. Funding opportunities can also be designed and scaled to focus on encouraging grassroots and community-led organisations to engage with them. For example, Historic England’s Everyday Heritage Grants are supporting community-led and people-focused projects that aim to further the nation’s collective understanding of the past. Grants of up to £25k were available to community and heritage organisations, with Historic England encouraging applications from smaller grassroots projects of less than £10k. The prog