New capital projects by the Department for Levelling Up, Housing and Communities (DLUHC) will now have to be approved by the Treasury.

The move comes after concerns about DLUHC’s ability to deliver value for money.

In October the Levelling Up, Housing and Communities Committee launched an inquiry into whether the Government’s approach to funding for levelling up ‘offers value for money given the current economic climate’.

The inquiry was launched after the National Audit Office (NAO) said DLUHC had ‘not consistently undertaken robust evaluations of local growth policies over the years’ and therefore had a ‘limited evidence base about the effectiveness and value for money of its past interventions and the billions of pounds awarded to local bodies to support economic growth’.

Local government has been told that levelling up secretary Michael Gove is ‘interested’ in value for money and applying ‘forensic scrutiny’ on policy areas.

Mr Gove has also recognised the need to simplify and rationalise the funding available to local authorities amid concerns about the burden of bidding for multiple funding pots.

Last year the Public Accounts Committee said this was ‘welcome recognition that the current situation does not represent value for money’.

A December 2021 NAO report read: ‘Relying on fragmented, short-term funding pots for which local authorities have to compete is not the best way to direct funding to the areas that need it.

'Overall we are concerned that the Government’s approach to funding risks not delivering value for money.’

A Government spokesperson said: ‘The Government’s central mission is to level up every part of the United Kingdom by spreading opportunity, empowering local leaders and improving public services.

'DLUHC will continue to deliver its existing programme of capital projects as planned.’

This article was originally published by The MJ (£).