Overview The UKSPF is establishing new relationships between the UK government, devolved administrations, local government and local partners across the UK. We are putting people that know their places best, front and centre in shaping decisions. Working to a UK-wide framework published by the UK government, local partners will influence the Fund through development and delivery of an investment plan for each place. This represents a fundamental shift in responsibility compared with the European structural funds that the Fund succeeds. The Fund will operate UK-wide and use the financial assistance powers in the UK Internal Market Act 2020 to deliver funding to places across the UK. In addition to the devolved administrations’ existing powers, this allows the UK government to complement and strengthen the support given to local people, businesses and communities in Scotland, Northern Ireland and Wales, as well as England. We have worked with each of the devolved administrations to develop interventions that follow the fund’s principles of local autonomy while recognising the different policy and funding landscapes of each nation. The Ministry of Housing, Communities and Local Government will oversee the Fund at UK level, working with other departments and in particular when bespoke interventions are proposed. The Department for Education will lead delivery of the Multiply element of the Fund in England, a UK-wide digital platform for adult numeracy, as well as a programme of evaluation, including randomised control trials, to build the evidence of what works. It will work closely with the Ministry of Housing, Communities and Local Government, lead local authorities and the devolved administrations on Multiply delivery in Scotland, Wales and Northern Ireland. It will play a key role in relation to wider skills interventions, working with local partners. Local areas will also be expected to work closely with Department for Work and Pensions or devolved administrations where relevant in the planning and delivery of employment interventions to ensure alignment with mainstream employment provision.
4.2 The role of lead local authorities In England, Scotland and Wales, local government is being given responsibility for developing an investment plan for approval by the UK government, and for delivery of the Fund thereafter. This recognises that pride in place and increasing life chances can be best achieved by delivery close to local people and businesses; by authorities that understand each place’s unique local context and identity, and with established governance. Lead local authorities will receive an area’s allocation to manage, including assessing and approving applications, processing payments and day-to-day monitoring. Where the Fund operates over a strategic geography (for example, places in Scotland and Wales or the mayoral combined authorities), all allocations will be aggregated at the strategic geography level, including the 4% for administration. The lead authority for the strategic geography will have overall accountability for the funding and how the Fund operates. Where specific local authorities within the strategic geography take lead responsibility for a particular UKSPF intervention or policy for the wider geography, lead authorities can allocate a proportion of their administration budget to them. Individual local authorities or other public bodies within the strategic geography may take lead responsibility for a particular UKSPF intervention or policy, either delivered locally or for the wider geography, where this reflects the right approach to local needs. While the lead local authority would retain overall responsibility, they can allocate a proportion of their administration budget to individual authorities or bodies in these circumstances. Lead local authorities can determine, with partners, the most appropriate scale for each intervention – for example, regional, local or through collaboration with other places or bodies to deliver specific interventions. This can include working with places in different parts of the UK. This should consider value for money, effectiveness and current arrangements. Lead local authorities for each area will have flexibility over how they deliver the Fund. They may wish to use a mix of competitions for grant funding (which is the default approach set out in Cabinet Office Grants Standards), procurement, commissioning or deliver some activity through in-house teams. For example, some community level interventions may require a commissioning or in-house approach, recognising that competitions for grant may create barriers to participation in left behind communities. Lead local authorities should also design their project selection and contracting processes so they have mechanisms to recover funding where beneficiaries do not comply with fund parameters, UK law or any local requirements. We will ask each lead local authority to notify us of any current or emerging operational or financial risks, or issues, and any contingency measures put in place. This will be requested in each place’s investment plan and in each report thereafter. This will help us determine the level of support we may provide, and/or enhanced monitoring that we may require. This may also result in reduced delegation of the fund in the affected area. In Northern Ireland, the UK government will work with local partners to design a Northern Ireland investment plan. This plan will be used by the Ministry of Housing, Communities and Local Government who will have oversight of delivery. This reflects the distinct and different role local government plays in Northern Ireland.
4.3 Collaboration with other places Each place has a range of economic and societal relationships with other places across the UK, including their neighbours and places with common needs and opportunities. We expect a separate investment plan for each delivery geography (whether this is a strategic geography, or a single district council area). However, working with other places is strongly encouraged in the delivery of Fund interventions where it meets the needs of their place, and achieves value for money or better outcomes for local people or businesses. This could take the form of national or regional interventions, or projects that deliver across places either side of national boundaries in the UK with strong economic and social ties. Delivering interventions at the national or regional scale might be beneficial when seeking to deliver larger, strategic projects, when economies of scale exist that would result in higher value for money or better outcomes for local people and businesses, or where it would reduce the burden or complexity of commissioning. It could also involve places at opposite ends of the UK with similar thematic needs working together on common interventions to achieve scale. Or, more local collaboration between councils and their neighbours. In particular, we strongly encourage lead local authorities to work with other authorities (district, county or unitary councils where relevant) to agree and commission people and skills activity, or business support activity over a larger scale representative of the full local labour market or business base. Lead local authorities will be asked to set out their approach in their investment plan. In addition, where the Fund is operating over a strategic geography, lead local authorities must engage with their constituent authorities and other local partners to ensure that the needs of places within the strategic geography can be effectively addressed.
4.4 Delivery arrangements across the UK 4.4.1 England In England, the Fund will primarily operate over the strategic geographies of the Mayoral Combined Authorities (MCAs) and the Greater London Authority (GLA), and district councils or unitary authorities elsewhere. These are the lead local authorities for UKSPF purposes. See Delivery geographies. Outside of MCAs and the GLA, Multiply will be delivered at the upper-tier or unitary level in England. Multiply local authorities in England should set out plans for delivery of adult numeracy support in a separate plan submitted to the Department for Education. Lead local authorities for either Multiply or core UKSPF should work closely together to ensure that each element of the Fund works coherently, achieves good value and is as aligned as possible. Lead local authorities should take account of the Adult Education Budget and remaining European Social Fund investments, which operate at larger geographies and engage with relevant employment and skills bodies and stakeholders, including Jobcentre Plus and Skills Advisory Panels, even where the decision is taken not to deliver interventions at the strategic scale. Unitarisation Since publication of the pre-launch guidance, Parliament has agreed legislation to restructure local government in North Yorkshire, Somerset and Cumbria. This means we need to update the delivery arrangements for these areas. In each of North Yorkshire and Somerset, a single new unitary council will – from 1 April 2023 – replace all the principal councils in these areas. Before then, North Yorkshire and Somerset county councils will be ‘continuing authorities’; these councils will have the right to sign off all new district council investment, including UKSPF. As a result, we now require a county-wide plan for each of North Yorkshire and Somerset. The county councils and district councils are expected to work closely to target interventions according to local need, and in particular ensure that communities and place investments reach all parts of the county areas. In Cumbria, two new unitary councils will – from 1 April 2023 – replace all the principal councils in these areas. Consent of these two new unitary authorities – Cumberland Council and Westmorland and Furness Council, even in shadow form, will be needed for new district council investment, including UKSPF. As they will only exist in shadow form until April 2023, individual plans for each of Cumbria’s district council areas are still needed. We expect close collaboration between districts leading investment plans and the shadow unitary councils. This should include some joint elements of each district plan, notably delivery arrangements, and consent by the shadow unitary authorities prior to submission. From 1 April 2023 the district areas are abolished. At this point, we expect the relevant district investment plans to be merged into plans for each new council area. The Devolution Mission The Levelling Up White Paper sets out a devolution mission for England: By 2030, every part of England that wants one will have a devolution deal with powers at or approaching the highest level of devolution and a simplified, long-term funding settlement. We expect delivery responsibility for the Fund to align with these deals in due course. To provide funding and delivery certainty for all local partners, the delivery arrangements set out in this prospectus will continue until March 2025 In the meantime, each district or unitary council is expected to produce and deliver a standalone investment plan for its place. As noted above, working with other places is strongly encouraged in the delivery of Fund interventions where it meets the needs of their place, and achieves value for money or better outcomes for local people or businesses. This can include working across wider county or other geographies. Any such plans should be identified in the place’s local investment plan. In particular, we strongly encourage lead local authorities to work with other district, county or unitary authorities to agree and commission people and skills activity or business support where relevant. 4.4.2 Scotland and Wales The partnerships that deliver City and Growth Deals in Scotland and Wales are strong examples of collaboration. Supported by the UK government and devolved administrations, the deals have empowered local leaders and partners to come together to drive growth and productivity across their region. Devolved administrations have also established, or are in the process of establishing, complementary structures to promote partnership working over strategic geographies. These include Corporate Joint Committees in Wales and Regional Economic Partnerships in Scotland. The UK government wants to build on this approach and promote existing partnership working across both Scotland and Wales. Local authorities across each strategic geography have been invited to collaborate in developing investment plans and delivering the Fund. This builds on the strong support for a regional approach from local partners and the Scottish and Welsh governments. In Scotland, we support delivery through Regional Economic Partnerships where this is the preference of local areas. These regional geographies build on the successful City and Regional Growth Deal partnerships. We intend to work with the Convention of Scottish Local Authorities and the Scottish Government to facilitate collaborative work across these Regional Economic Partnership geographies. This recognises that the final composition of some partnerships is still to be determined, and that some authorities want to cooperate with partners in multiple directions. Under such arrangements, the lead local authority for each partnership will submit a single investment plan. In Wales, we support delivery across the four regional strategic geographies which are co-terminous with strategic geographies covering City and Growth Deal areas. We want to work with the Welsh Government and the Welsh Local Government Association to support work across the four existing geographies and develop comprehensive accountable arrangements to administer the Fund in time for submission of each place’s investment plan. 4.4.3 Northern Ireland In Northern Ireland, the Ministry of Housing, Communities and Local Government will manage delivery at Northern Ireland scale. To do this effectively we want to work with local partners to design an investment plan. We will refine the plan in consultation with stakeholders in a way that reflects the needs of Northern Ireland’s economy and society. This group could include representatives from Northern Ireland Executive Departments, local authorities, businesses and the voluntary sector. This will forge new ways of working and opportunities across Northern Ireland. The development of the single Northern Ireland investment plan and its delivery will create roles for partners across each of Northern Ireland’s City and Growth Deal geographies. It will maximise local intelligence, insight and knowledge, in recognition of the opportunities and challenges unique to Northern Ireland and the distinct and different role local authorities play there. In order to support the delivery of interventions at their most appropriate level, we anticipate that there will be a varied approach to market in Northern Ireland. For example, it could involve local project selection across City and Growth deal areas or interventions might be delivered at a Northern Ireland wide level. The approach to delivery will be guided by the final version of the UKSPF plan for Northern Ireland.
4.5 Supporting lead local authorities to deliver Preparing the investment plan We are making £20,000 available per lead local authority or £40,000 for each Mayoral Combined Authority and the Greater London Authority in England to undertake initial preparatory work for the Fund, including developing their local investment plan for submission in the summer. In Scotland and Wales, the lead local authority for each strategic geography will receive £40,000. This reflects the extra work required to establish new delivery and governance arrangements in these areas. This funding is in addition to each place’s allocation, and will be paid on sign-off of each place’s plan. Day-to-day Fund administration We know that local government will require support to administer the Fund. Each lead local authority in England, Scotland and Wales will be able to use up to 4% of their allocation by default to undertake necessary Fund administration, such as project assessment, contracting, monitoring and evaluation and ongoing stakeholder engagement. Setting up the Fund may need a larger administration budget in the first year than in later years. This is acceptable so long as the percentage is not exceeded overall. Larger authorities, and those with bigger Fund allocations will not require a full 4%. In these cases, a smaller amount can be used, with the balance being used to support Fund interventions. By exception, smaller local authorities, those with smaller Fund allocations or strategic geographies in Scotland and Wales may need to use more than 4% of their allocation to successfully administer the Fund. Where this applies, the lead local authority must set out a case for a higher percentage in their investment plan. This request will be assessed and where approved monitored, to ensure that the benefits of a higher administrative budget are being secured. Longer-term capability support We are also exploring the need for additional capability support for local government and other partners to maximise the opportunities that the Fund affords. To help us understand this need better, we are asking lead local authorities to answer specific questions on the experience and capability of their teams, as part of their investment plan. We will explore working with experienced local authorities, government and sectoral partners in developing peer networks that can help share good practice. Lead local authorities interested in leading networks may use part of their admin allocation to support this work.