Tag: Levelling Up funding

Levelling Up shambles: ‘No compelling examples of delivery so far’

  • Just over 10% of promised funds actually spent and making a difference on the ground
  • Public Accounts Committee warns of lack of transparency and waste of public resources in funding approach

The Government is unable to provide any compelling examples of what Levelling Up funding has delivered so far. In a report published today, the Public Accounts Committee (PAC) warns that councils have been able to spend just a fraction of the Government’s promised Levelling Up funding, with only just over 10% of the funds provided to reduce inequality under the Levelling Up agenda actually spent and making a difference on the ground.

The PAC’s report finds that, of £10.47bn in total funding from central government, which must be spent between 2020-21 and 2025-26, local authorities have been able to spend only £1.24bn from the Government’s three funds as of Sept 2023.

Furthermore, only £3.7bn had been given to local authorities out of the total allocation by the Department for Levelling Up, Housing and Communities (DLUHC) by December 2023.

In evidence to the PAC, DLUHC cited project-specific issues and the impact of the pandemic and inflation for a lower-than-anticipated level of spending to date. The PAC is calling for six-monthly updates from DLUHC, both on the amount of money released to and spent by councils, and on the progress of projects themselves.

The report finds that more impactful bids to funding lost out due to optimism bias in favour of so-called ‘shovel-ready’ projects. Yet, the report raises concerns that not enough was done by DLUHC to understand the readiness of schemes and the challenges facing local authorities before funds were awarded.

This also means that DLUHC has had to extend the deadline for successful bidders for earlier funds to spend their money.

Round 1 of Levelling Up Funding was awarded to ‘shovel-ready’ projects that were supposed to be completed and delivering for local people by March 2024 – but 60 out of 71 of these projects have had to extend to 2024-25, with further delays in other schemes likely.

The PAC’s inquiry also found a worrying lack of transparency in DLUHC’s approach to awarding funds, with rules for accessing funding changing while bids were still being assessed, which was also not communicated in advance to councils.

55 local authorities therefore bid under changed rules with no chance of being successful in Round 2, with an average bid for grants like Levelling Up costing around £30k.

This approach wasted scarce public resources, and the report calls on DLUHC to set out the principles it will apply and the decision-making process for awarding future Levelling Up funds.

Dame Meg Hillier MP, Chair of the Committee, said: “The levels of delay that our report finds in one of Government’s flagship policy platforms is absolutely astonishing.

“The vast majority of Levelling Up projects that were successful in early rounds of funding are now being delivered late, with further delays likely baked in. DLUHC appears to have been blinded by optimism in funding projects that were clearly anything but ‘shovel-ready’, at the expense of projects that could have made a real difference.

“We are further concerned, and surprised given the generational ambition of this agenda, that there appears to be no plan to evaluate success in the long-term.

“Our Committee is here to scrutinise value for money in the delivery of Government policy. But in the case of Levelling Up, our report finds that the Government is struggling to even get the money out of the door to begin with.

“Government has not helped the situation by changing the rules for funding mid-process, wasting time and money and hindering transparency.

“We will now be seeking to keep a close eye on DLUHC’s progress in unclogging the funding system. Citizens deserve to begin to see the results of delivery on the ground.”

Communities across the UK can bid for Levelling Up funds to save pubs, clubs and historic buildings

Community groups across the UK can today (11 June 2022) bid for levelling up funding to take back control of pubs, music venues, sports facilities, and historic buildings for the benefit of the public.

Groups will be able to bid for a share of the government’s £150 million Community Ownership Fund to rescue cultural buildings in their area that could otherwise be lost forever, as the second round of funding is open.

The first round of funding has already helped local people transform their communities into a more desirable place to live, work and visit, supporting 39 projects across the UK. This included £550,000 to establish a boxing gym in Oldham, £250,000 to rescue a historic spinners mill in Leigh and £1 million for Bury fans to rescue Gigg Lane stadium.

Changes to the fund announced at the end of May will ensure it is more inclusive and flexible, so that more communities can benefit and more local economies are supported.

Minister for Levelling Up, the Union and Constitution, Neil O’Brien MP said: “We want to help communities across the UK save the pubs, sports clubs and historical buildings which matter most to them, and would otherwise be at risk of being lost forever.

“This is part of our plan to spread opportunity, boost local pride and level up every corner of the UK while growing the economy to address the cost of living.”

Backed by £550,000 of government funding, a historic Victorian building in Oldham has been transformed into a boxing gym and personal development centre which provides support for vulnerable young people.

Without this funding, the centre would have been forced to move and local young people would have missed out on the opportunity to flourish in their local community.

Eric Noi, head coach at Oldham Boxing and Personal Development Centre said: “The gym is already a major part of the community, and this funding will help us improve our facilities and allow us to continue supporting people of all ages, including some of the most vulnerable in society.

“For organisations such as ours, funding like this is a vital lifeline – without it we would not be able to help people improve their lives, fitness and futures.”

In Leigh, locals stepped up to take ownership of the historic Spinners Mill, which has been vacant for many years and was at risk of being lost to deterioration.

With £250,000 from the Fund, the building will now be restored and used to create new sports and leisure facilities alongside an area for creative arts whilst protecting wider access to the heritage-rich building.

Director of Leigh Building Preservation Trust, Peter Rowlinson, said:  “Leigh Building Preservation Trust is delighted at the support from government to allow the further development of Leigh Spinners Mill.

“We believe this project is a true example of Levelling Up by being a community partnership restoring the heritage of the town of Leigh whilst also creating new jobs and community facilities.

“The restoration of Leigh Spinners Mill would not have been possible without the Community Ownership Fund assistance.”

The fund has been updated to widen eligibility criteria, including removing the requirement that assets have had a use within the last 5 years and will now consider any asset which has had a previous community use, massively expanding the projects eligible to apply.

Applicants who have a minimum of a 15-year lease on an asset would now also be considered for funding. Previously, leases were restricted to a minimum of 25 years.

Today’s announcement is part of the UK Government’s ambition to level up local communities across the country, create more local jobs, boost local businesses and build up local economies as a result.