A major evaluation of the £4.8bn programme has lifted the lid on the challenges facing local authorities trying to deliver regeneration, transport and cultural schemes backed by the fund.

According to the Ministry of Housing, Communities & Local Government’s own process review, a staggering 95% of projects funded in Rounds 1 and 2 have been delayed — with nearly 40% now more than a year behind schedule.

A race to submit for funding by council meant that only 3% were “shovel ready” at the point of award.

This stored up a welter of problems that severely hampered the fund’s aim to visibly improve everyday life across the UK, says the review.

Headline findings

Round 1 of the Fund launched with little notice in March 2021. Councils were given just three months to pull together complex bids — often with no full designs or cost plans.

Officials had to be recruited and trained at speed, and guidance was vague. Round 2 improved slightly with an online portal and better assessment tools, but delays and poor communication still plagued the process.

In Round 3, bidders were invited to resubmit unsuccessful Round 2 proposals — but rising construction costs meant many had to be rescoped, causing yet more delays.

The Government report reveals that most schemes are stuck in pre-construction stages.

Planning, design, procurement and inflation have all contributed to major slippages.

Two-thirds of projects cited inflation as their top delivery barrier, with another 40% flagging underfunding.

Common hurdles to progress:

• lack of in-house project delivery expertise;
• slow planning and listed building consents;
• cost hikes caused by inflation;
• trouble securing specialist contractors, especially in rural areas.

A second phase of the Government evaluation will run through to 2027 with a focus on lessons from individual projects.

It will feed into a full impact evaluation and future government funding policies.