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Levelling up funding to local government

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

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

5 items
5 accepted 5 implemented

Recommendation 1

Addressee: Ministry of Housing Communities and Local Government · Source location: Page 14, a

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.

Response position: Accepted

Delivery: Implemented · Q3 2025-26 · Confirmed by NAO

Recommendation 2

Addressee: Ministry of Housing Communities and Local Government · Source location: Page 14, b

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.

Response position: Accepted

Delivery: Implemented · Q3 2025-26 · Confirmed by NAO

Recommendation 3

Addressee: Ministry of Housing Communities and Local Government · Source location: Page 14, c

DLUHC should further use the learning from the process and impact evaluation to build an evidence base of what works to stimulate local economies.

Response position: Accepted

Delivery: Implemented · Q2 2026-27 · Confirmed by NAO

Recommendation 4

Addressee: Ministry of Housing Communities and Local Government · Source location: Page 14, d

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.

Response position: Accepted

Delivery: Implemented · Q4 2025-26 · Confirmed by NAO

Recommendation 5

Addressee: Ministry of Housing Communities and Local Government · Source location: Page 14, e

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.

Response position: Accepted

Delivery: Implemented · Q4 2025-26 · Confirmed by 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.