Clive Betts has written to the government to clarify how capital spending restrictions on the Department for Levelling Up, Housing and Communities (DLUHC) will impact ongoing projects.
The chair of the Levelling Up, Housing and Communities Committee’s letter follows a report in the Financial Times that DLUHC had been “banned from making spending decisions on new capital projects”, which will instead need Treasury sign-off. This was later confirmed by Lee Rowley, minister for local government, at an urgent question in the House of Commons.
In his letter addressed to Dehenna Davison, levelling up minister, Betts raised his concerns about what the capital spending restrictions mean for the department and its policies. He also asked a series of questions, including how the restrictions will impact future funding pots, such as the Levelling Up Fund.
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Betts said: “The Treasury no longer appears to trust the department for levelling up to spend money without Treasury approval. This change raises very real concerns about what this means for the levelling up department and its policies.
“How will current projects be affected? Will councils still receive the monies on time? How will funding pots such as the Levelling Up Fund be affected?
“The government should also spell out publicly the concerns which were raised about the department’s ability to deliver value for money.”
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