Simplifying the Funding Landscape for Local Authorities

Statement

I am today publishing this Government’s plan for simplifying the funding landscape for local authorities. This plan sets out our ambition for increasing the effectiveness and efficiency of the current funding system.

This publication follows the commitment within our landmark Levelling Up White Paper, to deliver a more transparent, simple, and accountable approach to funding.

This Government is focused on continually improving the way funding is delivered, including by minimising burdens and paperwork on all organisations bidding for funds, to unlock the potential of local economies, create visible improvements within communities, and ensure that more funding does not mean more bureaucracy.

By reducing administrative burdens on local authorities, this plan will support them to maximise their return on spending, generating the best outcomes for communities. This plan is one step in a long line of measures that have already been announced, to increase the impact and reduce the red tape around funding and levelling up.

The plan details three main phases for change:

1. Immediate simplification of existing funds and communication. This includes a new ‘Simplification Pathfinder Pilot’ to test the streamlined delivery of capital funding in a small group of local authorities. We are also amending our project adjustment request process for Town Deals, the Levelling Up Fund, and the Future High Streets Fund, giving local authorities more flexibility to change projects;
2. A new ‘Funding Simplification Doctrine’ requiring departments to strive for a simpler and more streamlined way of delivering funding to local authorities, including considering allocative distribution approaches;
3. Reforms to be implemented at the next Spending Review, including single multi-year departmental-style funding settlements for the trailblazer Mayoral Combined Authorities and better join up across interconnected policy areas and investment programmes.

Together, these reforms meet our Levelling Up White Paper commitment to streamline the local funding landscape. As set out in the plan, we will continue to engage with local authorities on all aspects of funding simplification.