The Department for Levelling Up, Housing and Communities (DLUHC) has increased the allocation in the second round of the levelling up fund to “up to £2.1bn” compared to the expected figure of £1.7bn.
An announcement on the allocation for individual councils has been postponed and is now expected to be released by the end of January.
DLUHC suggested that the delay was due to the receipt of “so many high-quality applications” that extra time was required “to carefully consider the bids to allocate additional funds”.
Sir Stephen Houghton, chair of the Special Interest Group of Municipal Authorities, told Room151 that a further delay in announcing allocations for the second round of the levelling up fund was “frustrating”.
“Councils have had to complete numerous bids in quick time, so it is disappointing when the government then dither and delay. This is potentially putting projects at risk.
“The excuse that the delay is due to ‘so many high-quality applications’ reveals the flaws in the competitive bidding system – it appears the department (DLUHC) are delayed by having to spend time deciding which high-quality bids not to award funding to,” he said.
Houghton continued to suggest that with delays to the approval of UK Shared Prosperity Fund investment plans, the “investment zone debacle” and now postponing the levelling up fund, “there are concerns that the government is losing grip of this vital agenda”.
“Hopefully the funding in round two will be better targeted to the most deprived areas and the government can get the ‘levelling up’ agenda back on track,” he added.
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