Gove criticises number of competitive funding pots

The local government funding landscape has “too many” competitive funding pots, the levelling up secretary has said.

Speaking at a webinar hosted by the thinktank ResPublica, Michael Gove said the high level of competitive bidding meant some local authorities faced multiple application processes.

“Some local authorities simply don’t have the capacity to jump through all of those hoops,” he said.

Mr Gove told attendees that while he thought an element of competitive bidding was important, there now “needs to be more of a role for formula-based allocations and for clarity about the basis on which that money will come for local authority areas”.

He added: “One of the things we’re trying to do, particularly with all the combined authorities, is give them greater certainty over new powers and the funding that goes with it. So, they can mix and match or switch as appropriate given local principles.”

During the session, Mr Gove was also quizzed on devolution and the new framework laid out in last month’s levelling up white paper.

A crucial part of the government’s plans is to see the creation of several new combined authorities, to be led by a single accountable figure in each place.

“I think that we could have a waterfall of devolution,” Mr Gove said.

“We have a typology of devolution – the top level is having a mayor or equivalent.

“If people don’t particularly like the term mayor because it’s not particularly urban, then it will be for that local area to decide what the directly elected local government figure might be called.

“Governor is one of the terms being considered,” Mr Gove added.

Mr Gove also gave further details of the role of the levelling up directors currently being recruited by the Department for Levelling Up, Housing & Communities.

“We’re identifying particular areas…. which have a specific and discrete set of problems and the government has a plan to recruit levelling up directors who will be single points of contact for all government services for local areas,” he said.

“The levelling up directors, even though they’ll be recruited by my department, are intended to be working across every issue,” Mr Gove added.