Strained local government capacity to design and deliver economic policies.Weak executives and accountability arrangements across local government limiting further devolution.Fragmented local government structures complicating the delivery of economic policies.Decisions made centrally with little understanding of local context and the needs of local government.Over-reliance on competition, with up to a third of all grants competitively allocated.Lack of any national strategy coordinating the various grants.
Grants are often short term and have a high churn rate, leading to difficulties in long-term planning for local authorities.The system’s fragmented funding streams make it complex, with over 53 different grants for economic development and regeneration, and roughly 15 for transport.What’s wrong with the current system of grants? It then builds on these proposals to outline what an allocation under this streamlined system could look like. This briefing proposes a way forward, identifying persistent issues with the current grant system before setting out proposals for a new streamlined grants system. However, a year on, no concrete developments have been made. The Levelling Up White Paper committed to streamlining the grants system for local government. Local government relies heavily on central grants to deliver economic policies, and the current system hinders its ability to respond effectively to economic change.
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