Halifax Courier

Complexiti­es of grant system cost councils millions of pounds

- By Coun Tim Swift, Calderdale Labour Group leader

One of the biggest frustratio­ns for Calderdale – and every other council - is how more and more central government money is channelled through a myriad of separate grant funds.

Usually, this involves submitting competitiv­e bids, setting councils against each other, while trying to secondgues­s the rules that will decide the winners and losers.

Sometimes, as with the recent round of the Levelling Up Fund, it appears that the rules are changed after bids have been submitted - wasting even more time and money.

It’s estimated that £27 million was spent by councils across England bidding for the most recent funding round - and it would seem that for many of us, it was a pointless exercise as a random change in the rules meant our bids were not given serious considerat­ion.

The Local Government Associatio­n estimates that the average cost to each council in pursuing a competitiv­e grant bid is around £30,000.

So councils end up spending hundreds of thousands - possibly millions - of pounds each year chasing down various pots of money across Whitehall.

Incidental­ly, this inefficien­t and complex funding system is not just a problem for local government.

Take skills and training – a critical area for our future wellbeing, if our country wants to improve our disappoint­ingly low rate of economic growth.

Across England £20 billion is spent on at least 49 nationally contracted or delivered employment and skills related schemes or services, managed by nine Whitehall department­s and agencies, and delivered by multiple providers.

This is largely a result of our over-centralise­d and bureaucrat­ic system of national government. It has been increasing­ly made more political under recent Conservati­ve government­s, who seem to use these grants to create photo opportunit­ies for ministers and Conservati­ve MPs.

This comes at the expense of transparen­t and effective decision making.

How much more effective would it be if central government simply got out of the way, allocating each local area adequate funding based on a fair understand­ing of relative needs, with decisions for local communitie­s taken by their locally elected representa­tives?

 ?? ?? It’s estimated that £27 million was spent by councils across England bidding for the most recent funding round.
It’s estimated that £27 million was spent by councils across England bidding for the most recent funding round.

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