Source · National Audit Office

Levelling up funding to local government

Published: 17 Nov 2023 Recommendations: 5 Type: Value for Money NAO confirmed: 5 Department: Ministry of Housing, Communities and Local Government

Government is funding thousands of levelling up projects across the UK. But many of these deadlines are unlikely to be met.

Dept: Ministry of Housing, Communities and Local Government Topics: Business and industryGrants and fundsLocal economyLocal governmentLocal service deliveryLocal services and housingMoney and taxTrade and investment nao.org.uk →

Recommendations

5 items

5 accepted 3 implemented 2 in progress

Rec	Recommendation	Addressee	Acceptance	Implementation
1	Given the delays to projects across the Levelling Up Fund and Towns Fund, DLUHC should set out what further action it is going to take if projects cannot be completed within the existing funding deadlines. This could include resetting expectations for what and when these funds will deliver, to take account of rising cost pressures driven by factors including inflation and capacity shortages. Ref Page 14, a · Implemented Q3 2025-26	Ministry of Housing Communities and Local Government	Accepted	Implemented ✓ NAO
2	DLUHC should swiftly build on the simplification pathfinder pilots and embed the learning into any further rounds of the Levelling Up Fund and similar future funds. Ref Page 14, b · Implemented Q3 2025-26	Ministry of Housing Communities and Local Government	Accepted	Implemented ✓ NAO
3	DLUHC should further use the learning from the process and impact evaluation to build an evidence base of what works to stimulate local economies. Ref Page 14, c · Implemented Q1 2028-29	Ministry of Housing Communities and Local Government	Accepted	In progress ✓ NAO
4	DLUHC should work with HM Treasury to ensure that funds for impact evaluation are secured beyond the current spending cycle and explore whether funding deadlines for the current funds can be extended to protect value for money. Ref Page 14, d · Implemented Q1 2026-27	Ministry of Housing Communities and Local Government	Accepted	In progress ✓ NAO
5	DLUHC should develop its plans to disseminate learning and insight from its evaluations in a timely way and engage with local authorities to maximise understanding of what works prior to waiting for final evaluation reports. Ref Page 14, e · Implemented Q4 2025-26	Ministry of Housing Communities and Local Government	Accepted	Implemented ✓ NAO

Public Accounts Committee follow-up

1 report

The Public Accounts Committee examined this NAO report and published its own recommendations. The government responds to PAC recommendations via Treasury Minutes.

15 Mar 2024 Public Accounts C… Twenty-First Report - Levelling up funding to local government — 19 recommendations · parliament.uk