MPs have demanded an explanation over why the chancellor has limited levelling-up spending.
The chair of the levelling up select committee, Clive Betts, has written to the levelling-up minister, Dehenna Davison, asking exactly why the Treasury has restricted its capital spending.
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.”
Before the start of February, the department was able to sign off capital spending up to £30m at its own discretion. On 9 February, DLUHC minister Lee Rowley acknowledged that the department was now working “within a new delegation approach” which involved “sign off with Treasury on capital spend”.
Betts demanded to know: “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 select committee chair, who was interviewed by EG in a recent podcast, is conducting his own investigation into levelling-up funding.
He added: “The government should also spell out publicly the concerns which were raised about the department’s ability to deliver value for money.”
Earlier this week it was revealed that Davison had herself written to the Treasury to demand an explanation.
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