The next government must end the ‘begging bowl culture’ of local growth funding, a think-tank has argued.
The Institute for Government (IfG) has warned that the current funding landscape is inhibiting local growth and urged the next government to simplify the system for all local and combined authorities, not just the most developed mayoralties.
In a new report, the IfG argues that the ‘huge’ number of available funds, which are often-short term with tight ring-fences, is undermining levelling up and other government objectives.
The think-tank described competitive bidding – which makes up a quarter of funding streams – as a ‘huge resource burden’ for local authorities, with bids often costing £20,000 to £30,000.
It said the bidding process was ‘not working for anyone’ and should only be used in exceptional circumstances.
Report author Rebecca McKee said: ‘The current funding model is a major barrier to local growth across the country, undermining both central and local government efforts to reduce regional inequalities.
‘Simplifying funding has to be an early priority for a new government: failing to tackle it again risks undermining any future regional growth programmes.’
