Local authorities face “significant national barriers” when meeting net-zero targets and need long-term, non-competitive funding to reduce emissions, according to a new report by UK100.
Financial analysis by UK100, a network of local authorities committed to meeting net-zero targets early, found that despite government funding being available for councils to reach their net-zero goals, the money is neither enough nor able to be accessed in the most impactful way.
Commenting on the report, Jason Torrance, assistant chief executive at UK100, said: “Local government progress on net zero has been significant over the last year.
“But it is clear that local authorities face significant national barriers that are stifling their ability to do more, more urgently.
“The major roadblocks to accelerating net zero action are the limited powers and resources already stretched local authorities have at their disposal.”
Competitive funding
The report criticised the government’s competitive funding model, which allocates money to councils through competition for multiple different pots.
It stated: “This is problematic for several reasons. Many councils simply don’t have the capacity to complete lengthy funding applications, particularly when there’s a good chance they won’t receive anything.
“Competitive funding also tends to favour bidders who are already ahead in some way. Alongside this, there is no new money available.”
UK100 would like to see the government put greater emphasis on non-competitive funding and more long-term, ring-fenced funding for net-zero projects.
Torrance stated: “There is an urgent need to overhaul the diversity of small, short-term, competitive funding slots made available for net zero — as suggested by the former levelling up minister Michael Gove.
“Net zero is neither a competition nor a short-term goal. It needs real, stable investment.”
The major roadblocks to accelerating net zero action are the limited powers and resources already stretched local authorities have at their disposal.
The UK100 analysis also criticised HM Treasury’s Net Zero Review, for its lack of specific detail. The Net Zero Review was published in 2021 and set out the UK’s future net zero strategy across the government.
The report said: “There has been no new money for net zero. There has been a commitment to deliver through existing pots of money, but, as yet, there has been little alignment on net zero for existing funds and the net zero test that should be applied to all funding and financing needs to be transparent, robust and simple.”
Hence, the analysis called for greater clarity from the UK government on what is in and out of the scope of net zero funding.
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