Improving public funding allocation to reduce geographical inequalities

This research included evidence reviews, international case studies, analysis of spatially targeted funding streams, ‘deep dives’ into specific topics, interviews with policy practitioners, and citizen engagement. Addressing the role of public funding in reducing geographical inequalities in England, the research identified ten guiding principles and ten key problems with incremental, moderate and radical proposals to help resolve them.

The main messages for policy practitioners and decision-makers are:

• Prioritising and resourcing geographical inequality reduction within the national growth and renewal agenda are critical to improving public funding allocation.
• The problems in the existing funding allocation system are largely recognised and accepted by national, subnational and local policymakers, and there is a genuine appetite for reform. Early progress on positive reform, such as funding simplification, needs further support, acceleration and expansion.
• Meaningful and sustained decentralisation of powers and resources from national to subnational and local government is integral to building capacity and capability for improving funding allocation to reduce geographical inequalities.
• Strengthened accountability is central to enhancing the effectiveness and wider transparency, oversight and scrutiny of public funding.
• Monitoring and evaluation require substantive resources and strengthening alongside improvement of data and legibility for users, stakeholders and the wider public.

The findings from this study require further action through additional research and impact activities to communicate the findings to key audiences at the national, regional, and local levels. Key steps should include discussing implementation considerations, stimulating innovations and experiments that can be piloted, monitored and evaluated locally and regionally, and assessing the potential outcomes and impacts of the proposed changes. A high level and specialised working group needs to be established with relevant academic and national, regional and local policymakers to take this agenda forward. While we have deliberately presented a comprehensive spectrum of potential approaches, stakeholders should evaluate these options within their specific contexts for achieving meaningful change – from combined authorities through local government to community and neighbourhood groups. Strategy and planning for future enhancement of the funding allocation system must incorporate and reflect upon the ten guiding principles to guide and inform the design and formulation of approaches to public funding allocation and the reduction of geographical inequalities.