Frontier Economics and SYSTRA Ltd have published Phase 1 of their process evaluation of the Levelling Up Fund (LUF). The Fund has awarded £4.8bn for local authorities to invest in local infrastructure projects that improve everyday life in the UK, focusing on regeneration of town centres, upgrading transport links, and supporting cultural and heritage assets.

The report provides emerging evidence and lessons learned on the efficiency and effectiveness of awarding funding under Rounds 1 and 2 of the Fund, with initial insights on Round 3. Initial learnings are also reported on the types of interventions being delivered with this funding across the country, along with the barriers and enablers experienced by local areas when planning, designing and implementing them.

Key considerations for policy makers that have emerged at this stage include:

• Aligning fund durations with the delivery timescales of the schemes they are enabling; 
• While many LUF projects were initially assessed as deliverable within the three-year timeframe, this has often proven highly challenging due to several factors such as unforeseen economic pressures and procedural issues such as planning permissions and listed building consent;
• LUF has demonstrated that local capability to develop and deliver projects is critical to timely delivery. Ensuring this capability is adequate across local government is likely to provide a stronger base with which to deliver local growth initiatives, navigate statutory and approvals processes, manage and mitigate risks and adapt to changing circumstances effectively; and
• Supply availability varies across the country. Access to skilled contractors is crucial for the delivery of ambitious infrastructure projects. Early testing of market capacity across delivery locations would provide information to better mitigate the shortages in construction capacity and skillsets, particularly in specialist areas

The second phase of the process evaluation, set for 2025–2027, will further examine project implementation challenges and opportunities, offering deeper insights to support future policy-making and funding strategies.

 You can read the full report here.

 For further information, please contact media@frontier-economics.com or call +44 (0) 20 7031 7000.