Guidance

Simplifying the funding landscape for local authorities

This plan sets out how we will reform the local funding landscape to deliver a simpler, fairer, more transparent and accountable funding system for local authorities.

• From: Ministry of Housing, Communities and Local Government and Department for Levelling Up, Housing and Communities
• Published: 4 July 2023
• Last updated: 10 January 2024 — See all updates

Documents

Simplifying the funding landscape for local authorities

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Details

The government’s plan for simplifying the funding landscape for local authorities sets out our ambition for increasing the effectiveness and efficiency of the current funding system. This publication follows the commitment within the landmark Levelling Up White Paper, to deliver a more transparent, simple, and accountable approach to funding.

By reducing administrative burdens, this plan will support local authorities to maximise their return on spending, generating the best outcomes for communities.

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 the Levelling Up Fund, Town Deals and 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 multi-year, single departmental-style funding settlements for the trailblazer Mayoral Combined Authorities and better join up across interconnected policy areas and investment programmes.

Alongside the plan, we have also published the following accompanying documents:

• a DLUHC local growth and place funds register, to improve transparency and help stakeholders navigate the local funding landscape

• a funding glossary, to help applicants understand technical funding terms when submitting funding applications

• updated guidance for accountable bodies on changes to the Project Adjustment Request (PAR) process for Town Deals, the Levelling Up Fund, and the Future High Street Fund

• technical guidance on the Simplification Pathfinder Pilot providing further information about the pilot, including the 10 local authorities invited to participate

• Funding Simplification Doctrine guidance providing further information about the principles of the doctrine and how departments should consider them when designing new funds

Published 4 July 2023
Last updated 10 January 2024 + show all updates

1. 10 January 2024

   Added link to Funding Simplification Doctrine guidance.

2. 4 July 2023

   First published.