Long-term Plan for Towns: Technical Q&A

Question 1

1.  Background

Accepted Answer

1.1. Long-Term Plan for Towns

In September 2023, the Prime Minister launched the government’s Long-Term Plan for Towns, a core part of our broader levelling up programme.
We previously identified 55 towns across Great Britain that will receive funding as part of this programme and, at the Spring Statement, the Chancellor confirmed additional funding worth £400 million to extend this programme to an additional 20 towns across the whole of the UK, bringing the total investment to £1.5 billion.
Our plan will give towns the focus and attention they deserve, another important step in our mission to level up the United Kingdom. It puts power back into the hands of local people, so that they can decide on local priorities and what’s best for the long-term future of the places they live.
The 55 towns within the first tranche of the Long-Term Plan for Towns programme must have their Town Board in place by 1 April 2024. This should be run by local people for local people, bringing together residents, business, and community leaders to agree their Long-Term Plan.
Local authorities in each of the 55 towns have already received £50,000 to support the appointment of a chair for the Town Board and begin community engagement. From 1 April, once Town Boards are in place, the department will release the next £200,000 of funding so that towns can build their own local capacity, talk to local people about what they want from their town, and get going on their Long-Term Plans. Local Authorities should passport some or all of this capacity funding to local communities to help them to contribute to their Long-Term Plans.
For the additional 20 towns announced at Spring Budget, they will have until 1 June to set up their Town Boards. The £50,000 capacity funding to support that work will be released in April.
Town Boards will have the freedom to develop plans that meet local priorities across the 3 broad investment themes of: Safety and Security; High Street, Heritage, and Regeneration; and Transport and Connectivity, to utilise a range of levers and flexibilities to drive improvement and unlock barriers to regeneration and development.
The Department for Levelling Up, Housing & Communities will establish a new High Streets and Towns Taskforce to work with towns to provide bespoke, hands-on support to towns to help them deliver and implement the interventions identified in their Long-Term Plan.

1.2. Upcoming Milestones

For the 55 towns in tranche one:

By 1 April 2024 we expect:
- a chair is appointed to the Town Board
- local authorities work with the chair to set up the Town Board or repurpose an existing Town Deal Board
- a Town Board to be fully established
- Town Boards start planning and initiating community engagement
By 1 August 2024 we expect:
- DLUHC to have released the next £200,000 of capacity funding to support the development of the Long-Term Plan, including additional community engagement activity.
- Town Boards to submit their Long-Term Plans (comprising their 10-year vision and 3-year investment plan). The Plan will set out how funding will be allocated and spent, with the local authority as the body ultimately accountable for funding.

For the additional 20 towns announced at Budget:

By 1 June 2024 we expect:
- a chair is appointed to the Town Board
- local authorities work with the chair to set up the Town Board or repurpose an existing Town Deal Board
- a Town Board to be fully established
- Town Boards start planning and initiating community engagement.
By 1 November 2024 we expect:
- DLUHC to have released the next £200,000 of capacity funding to support the development of the Long-Term Plan, including additional community engagement activity.
- Town Boards to submit their Long-Term Plans (comprising their 10-year vision and 3-year investment plan). The Plan will set out how funding will be allocated and spent, with the local authority as the body ultimately accountable for funding.

1.3. Places and selection

How have these towns been selected?

Towns were selected across both tranches of the Long-Term Plan for Towns based on clear and robust methodology. The full methodology for both the first tranche of 55 towns and the additional 20 towns confirmed at the Spring Statement have been published.

1.4. Boundaries

What is meant by Town - will guidance stipulate geographical boundaries or is this for Board to agree?

The proposed town boundary to be used for Towns Boards in England and Wales is the ONS Built-up Area geography.
The proposed town boundary to be used for Towns Boards in Scotland is the Localities 2020 geography.
The proposed town boundary to be used for Towns Boards in Northern Ireland is based on the Settlements 2015 data.
Maps outlining that default geography for the first tranche of 55 towns were shared with local authorities on 6 February and will be published in due course, as part of a wider data-pack curated by the department.
We will share those maps, as part of a wider data-pack curated by the department, with the additional 20 towns announced at Budget in due course.
There is scope to make representations to the department to alter those boundaries, where an amendment remains within the spirit of the programme and includes, as part of the revised area, the town that was originally selected. For example, your town’s local transport hub may lie just outside of the boundaries provided or essential green spaces may have been excluded, due to the emphasis on ‘built up’ areas.
Alterations to the boundary should not reduce the size of the area or extend the boundary to bring in additional, separate population centres (i.e. different towns) and the proposed area must remain contiguous.

Part of the Area detailed in the ONS map falls into a constituency of a second Member of Parliament, should both Members sit on the Board?

In those examples where a town geography intersects significantly with more than one constituency, that second MP has been contacted and should be invited to sit on the Board, engaged in the appointment of the Town Board Chair and consulted as part of the Long-Term Plan.
Where a town geography intersects with more than one constituency, a second MP is invited to the board only where their constituency makes up at least 25% of area of the town.
Town Boards should instead consult respective MPs and other relevant councils, where there are investment projects relevant to their geography. There are currently only 2 cases of this, and we are speaking directly to the relevant towns.
Investment plans should note where there are multiple relevant MPs or councils, how they have been engaged on the plans and whether they have raised any concerns.

Question 2

2.  Funding and policy design

Accepted Answer

2.1. Funding profile

How much funding will towns receive?

The government has confirmed towns will receive up to £20 million of funding and support. The funding profiles for towns are set out below.
- The investment for each town will be split between 25% resource and 75% capital.
For the first tranche of 55 towns, £50,000 of capacity funding was paid in December, to support the setting up of Town Boards. The next capacity instalment of £200,000 will be sent to those local authorities in April. This will be released following the department completing the necessary assurance of the setup of the Towns Board and Chair and considering any alterations to the default Long-Term Plan for Towns investment boundaries.
- Learning from previous programmes has demonstrated that an over-reliance on Consultants can lead to the delivery of plans that do not reflect local priorities. It is therefore strongly recommended that some of your capacity funding is utilised for community engagement and directed in part or in whole towards supporting Community and Civic Society Groups to develop the Long-Term Plan.
The ‘endowment-style’ nature of this funding means each town will receive an annual, uniform, predetermined amount that is a broadly flat profile across each year of the 10-year span of the programme, similar to how Mayoral investment funds operate. This provides a predictable income for towns, delivering on the Prime Minister’s commitment, responding to the feedback of stakeholders, and giving Town Boards the certainty to leverage private and philanthropic investment.
- This was confirmed verbally by Adam Hawksbee at the Chief Executive webinar on 14 February and in a letter from Minister Young to Chief Executives, copied to MPs, sent on 23 February.

What does the funding profile look like?

Each town will receive an annual, uniform, predetermined amount – it is a broadly flat profile across each year of the 10-year span of the programme.
This provides a predictable income for each Town and a predictable expenditure profile for the government, delivering on the Prime Minister’s commitment and giving Towns Boards the certainty to leverage private and philanthropic investment.
Additionally, towns have the flexibility to rollover the funding we will be providing into future years.

For the 55 ‘tranche 1’ towns:

In addition to the £50,000 of capacity funding which was paid in December, Towns Boards will receive the 24/25 capacity instalment of £200,000 from April.
Once the Town Boards Long-Term Plan has been assessed and approved later this year, you will then receive the first Capital payment of £500,000 and Revenue payment of £249,000.
From FY25/26, Towns Boards will receive an annual payment of over £2 million per annum. This comprises £1,605,000 Capital payment and around £423,000 Revenue payment, which increases to £467,000 per annum from FY 31/32.
Additionally, towns have the flexibility to rollover the funding we will be providing into future years.
The full funding profile for tranche 1 towns is as follows:

	23-24	24-25	25-26	26-27	27-28	28-29	29-30	30-31	31-32	32-33	33-34	Total
Total RDEL per place £(000)	50	449	423	449	449	449	449	454	467	467	467	4,574
Total CDEL per place £(000)		491	1,605	1,605	1,605	1,605	1,605	1,605	1,605	1,605	1,605	14,936
Total amount per place £(000)												19,510

For the additional 20 ‘tranche 2’ towns confirmed at Spring Budget:

In April, local authorities will receive £50,000 of capacity funding to begin community engagement and support establishment of a Town Board
From June, once the Town Board is in place, you will receive the next £200,000 of capacity funding to support the development of the Long-Term Plan.
At the start of FY25/26, subject to assessment and approval of the Long-Term Plan, you will receive a consolidated capital and revenue payment for FY 24/25 and FY 25/26.
From FY25/26, Towns Boards will receive an annual payment of over £2 million per annum. This comprises £1,605,000 Capital payment and around £423,000 Revenue payment which increases to £467,000 per annum from FY 31/32.
The full funding profile for tranche 2 towns is as follows:

	24-25	25-26	26-27	27-28	28-29	29-30	30-31	31-32	32-33	33-34	Total
Total RDEL per place £ (000)	250	672	449	449	449	449	454	467	467	467	4,574
Total CDEL per place £ (000)		2,096	1,605	1,605	1,605	1,605	1,605	1,605	1,605	1,605	14,936
Total amount per place £ (000)											19,510

Can funds from the programme be used in conjunction with other funds?

Yes, should Town Boards consider it appropriate, they may wish to utilise funding through the Long-Term Plan for Towns to seek access to other government funding, e.g. the Community Ownership Fund or Youth Investment Funds.
We encourage Town Boards to consider how the interventions they are seeking to pursue through their Long-Term Plan complement other government funding in the locality, for example projects funded through the Levelling Up Fund.

What is the High Streets and Towns taskforce? What support can Towns expect?

As set out in the initial prospectus and guidance documents, towns will receive up to £20 million of funding and support. That support offer includes a new High Streets and Towns Task Force that will provide bespoke, hands-on support from place-making experts to support with delivery, encourage shared learning and promote networking between the Town Boards. Towns will be able to call on this resource rather than employ expensive consultancy advice.
They will also be continue to be supported by the Towns Unit, chaired by Adam Hawksbee, that reports directly to the Prime Minister and Secretary of State for Levelling Up.
We will also be establishing a new expert panel to provide a more strategic, cross-cutting perspective on thematic issues relevant to the investment priorities of the Long-Term Plan for Towns.
More information on this will follow.

2.2. Investment plans

What should Town Boards include in their Long-Term Plan with regard to funding?

Town Board’s Long-Term Plan must include a 3-year investment plan that sets out the proposed policy interventions the board wishes to pursue, which should include a forecasted spend that matches their expected delivery milestones.
Further guidance on the parameters and flexibilities of funding will follow.

Can local authorities capitalise programme spend?

In determining whether costs can be capitalised, local authorities will need to ensure that they follow proper accounting practices. Section 151 officers should support Town Boards in understanding how capital income can be used, with reference to statute and accounting code.

We have recently undertaken a significant level of public consultation – can the results of this consultation be used to inform their Long -Term Plan?

The Town Board will decide whether the findings are useful for their investment plan and subsequently whether they use it or commence their own engagement/consultation
We encourage Towns Boards to ensure that any form of consultation engages strongly with the local community and that they passport capacity funding on to local community groups to help to do so.

How will the plans be monitored?

The approach to monitoring is still in development, but is likely to focus on:
- documenting the progress of spend in towns and confirming that it is within agreed parameters.
- capturing the progress of delivery in towns so that achievements can be recorded and intervention or support can be provided where required.
- confirming that the assurance and accountable body responsibilities of the local authority are being met.
We will aim to provide further information and guidance for local authorities in the spring. We welcome any feedback in advance which will help us develop the guidance.
Across all of DLUHC funds, including the Long-Term Plan for Towns, and as part of our commitment to simplifying funding landscapes, we are committed to simplifying monitoring and evaluation activity for Local Authorities. We will embed the following principles in our approach:
- develop data burden reduction principles: these principles will ensure that any data requests are proportionate and add value
- make better use of existing and alternative data sources, such as from the Single Data List, to reduce the burden on areas: there are increasing opportunities for data to be centrally collected, for example through administrative datasets. Utilising data which is centrally held will improve consistency while reducing the burden for local authorities
- ensure data submission frequency is consistent wherever possible
- rationalise the number of output and outcome monitoring indicators, reducing duplication: currently there are over 400 indicators in use across DLUHC local growth funds; and
- reduce the amount of paperwork that recipients of funding have to complete to access grants

2.3. Funding timelines

Is there a requirement for a year 1 to 3 plan, then a year 4 to 6 plan etc., or is it a rolling review system, e.g. covering years 1 to 3, then years 2 to 4, 3 to 5 etc?

The requirement is for a year 1 to 3 plan, year 4 to 6 plan etc. While there will not be a rolling review, there will be light-touch annual monitoring and reporting processes, for which further details will follow in due course.

What does that mean for any forecast underspend?

Towns will have the flexibility to rollover funding into future years until the end of the programme, and the intention to roll over investment can be included within the 3-year plan, by opting not to forecast utilising the full profile year-on-year.
Equally, if a Town Board underspends within year, that money can be rolled into the next financial year with the certainty that the next tranche of funding will follow.
At the end of the first 3-year investment plan cycle, for FY27/28, there will be a built-in ‘check-in’ point, to analyse delivery across the first 3 years to ensure that the programme is delivering the change local residents wish to see alongside the submission of the next 3-year investment plan.

Does that mean Towns can draw down funding more quickly?

No, this flexibility does not extend to towns being able to draw down funding more quickly; however, your local authority may seek to use the confirmed revenue funding stream to borrow against, subject to normal considerations for prudential borrowing, and the flexibility provided by the additional confirmed capital income should they wish to front load investment.

When will the second tranche of capacity funding be released?

Further capacity funding for the 55 tranche will be released from 1 April 2024, at the point that government is satisfied that the Board has been established according to the principles set out in published guidance.
For the 20 additional towns confirmed at Spring Budget, the £200,000 of further capacity funding will be released from 1 June 2024.

When do we need to spend the capacity funding by?

Subject to delivery plans, monies can be rolled forward to make best use of available funds until the end of the programme.

We would like to start work on our projects as soon as they have been agreed by the Board and ahead of sign off of our Investment Plan. Are we able to back date our spend?

It will not be possible to backdate your spend and we would not encourage you to spend at risk.
Once your projects have been agreed by the Board, we would encourage you to send in your investment plans as soon as possible so we can release the funding.

Is this a 10-year programme?

This is a 10-year funding commitment, that runs to the end of FY33/34, and Towns should develop their vision on that basis.

Question 3

3.  Governance/Town Boards

Accepted Answer

3.1. Town Boards governance

The guidance states that Town Boards must be chaired by a local community leader or local businessperson. How should ‘local’ be interpreted?

The Chair should act as a champion for the town and provide leadership for the Town Board, ensuring it is community-led and embedded within the local area. They can be anyone who holds a prominent role such as:
- a local charitable organisation
- a philanthropist
- the head of a Further Education College
- a director for the NHS Board or Trust
- a director of a football club
The above is not an exhaustive list, if the local authority, having engaged with the relevant MP, feels there is a strong chair who can fulfil that role we are content for them to have flexibility over how they define ‘local’. However, consideration could be given to the length of tenure for the chair, to allow for replacement/succession planning, if necessary.

How should local authorities handle conflicts of interest when creating their towns boards?

The members of the Towns Board are expected to follow the Nolan principles of public life in their roles, including around conflicts of interest.
As vested members of the community, it is reasonable that many will have interests that may indirectly benefit from the board’s work. This does not preclude individuals from joining boards, but interests must be declared, and board members should recuse themselves from relevant decisions.
Local authorities will need to assure themselves in line with the contents of the guidance published in December and these associated governance and transparency checks will form part of the submission that needs to be submitted before 1 April and on which more detail will follow.

What impact will purdah and the pre-election period have on local authorities’ ability develop their Towns Boards?

The pre-election period does not affect local authority’s ability to appoint a Chair for the Towns Board, who should not be an elected individual.
If local authorities feel it is not within the pre-election period guidance to confirm which councillors are appointed to the Towns Board, they may want to publicly confirm this once the election is over. We expect that they will want to move as quickly as possible and we will provide them with £200,000 once the board is confirmed.
Local authorities should not let the appointment of Councillors delay the confirmation of the wider board, as the membership can be updated with relevant councillors after any election.

3.2. Board membership

Can we appoint a Chair who is an elected representative?

The guidance stipulates that an elected representative must not chair the Town Board. This includes parish council or elected community councillors.
Town Boards must be chaired by a local community leader or local businessperson. The chair should act as a champion for the town and provide leadership for the Town Board, ensuring it is community-led and embedded within the local area.

Can we appoint a Chair who is a Director of a local community organisation, but is also employed by the council?

The guidance states that the only stipulation is the chair must be non-elected and that permanent Chair is in place by 1 April. The local authority will need to reach an assessment on the candidates’ objectivity and any possible conflict of interests before confirming any appointment.

Could an Elected Member be a Deputy Chair of the Board?

There is no requirement to have a Deputy Chair. It is for the Board to decide if this is necessary and will not be detrimental to the authority of the Chair.

Can unitary authorities have 2 elected members appointed to the Board?

We recommend that the board should have a maximum of 5 elected members, which includes core representatives like councillors, MPs, PCCs etc. Where relevant for the town, the chair may wish to invite parish, town, or community councillors, noting that total numbers of elected representatives should be limited to promote community leadership.

Can Council Officers sit on the board in a professional capacity?

It is up to the chair of the board to determine membership, but all members of the Towns Board are expected to follow the Nolan principles of public life in their roles, including around conflicts of interest.
The board should comprise representatives from a cross-section of the local community to promote community leadership. Council officers may provide secretariat support for the Board and can sit as an observer to the Board discussions if agreed with the Chair.

Is business representation essential on the board?

The guidance is intentionally flexible in terms of Board membership, leaving as much as possible up to the local area to decide. As the guidance makes clear, local businesses are considered an important stakeholder group and their representation is encouraged, but not mandated.
Prospective members having related business interests would not automatically be excluded, provided those interests are declared openly and they can continue their role in line with the Nolan principles. If the authority, in conjunction with the Chair, feels that those ‘broader’ representatives have strong enough ties to the town, they can be considered.

Is PCC representation essential on the board?

As set out in the guidance published in December, Town Boards must include the Police and Crime Commissioner (PCC), or a delegated representative if that is agreed with the Chair.
Should Town Boards feel that they require further contribution from the police, noting particularly the different skills and input that could be provided by an operational representative, then it is within their discretion to invite whomever they deem appropriate to sit on the Board, including local police representation. This does not replace the mandated representation of the Police and Crime Commissioner on the Board.

How does a Town Deal Board differ from Town Boards?

If a town already has a Town Deal Board in place, or a similar such structure – for example, an appropriate subset of a Community Planning Partnership in Scotland – it could be appropriate to repurpose your existing board to avoid unnecessary duplication and allow towns to move quickly to draw up their Long-Term Plan.
If an existing forum is to be repurposed, it is incumbent on the chair, supported by the local authority, to ensure the right people are around the table to fully reflect the priorities of the town and the requirements set out in the Guidance- this may require further appointments, if deemed appropriate.

What is the process to change the members of the Town Boards?

We strongly encourage consistency and continuity in terms of Town Board membership, in line with the long-term nature of this programme.
While Town Boards can design their own process to update the membership of the Board, in collaboration with the local authority, we would encourage towns to consider whether the 3-year check-in point, at the end of each investment period cycle, is the most appropriate time to refresh Board membership.
Any updates to the Board membership will need to be communicated to government, and the appropriate conflict of interests checks completed.

Can we have sub-groups under the Town Board to focus on specific aspects of the plan?

Yes, Town Boards can decide that they want to have sub-groups. Indeed, they may want to assign a lead/s for each of the 3 thematic areas for investment through the Long-Term Plan for Towns, and use them to run sub-groups with interested community stakeholders, who then report those findings and insights back to the Town Board.

Question 4

4.  Long-Term Plan

Accepted Answer

Who will approve the Long-Term Plans?

The Long-Term Plan should comprise a 10-year vision, which clearly identifies the longer-term priorities for the town, and a 3-year investment plan as an annex.
The Town Board should review and endorse the Plan prior to its submission to government. For the 55 tranche one towns, that Plan must be submitted by 1 August 2024, and for the additional 20 tranche two towns by 1 November.
Plans may, but do not need to be, subject to internal local authority approval processes prior to submission given their role as Accountable Body in receipt of the grant under Section 151/127/114 in England and Wales and Section 95 in Scotland, therefore towns should build in time for this to occur.
Plans will need to be agreed by both the lead local authority and by UK government to unlock the financial allocations to the local authority.
Upon submission, plans will be subject to a light touch assessment process by the government. The assessment process will provide assurance that the interventions proposed in each Plan align with the broader objectives of the Long-Term Plan for Towns and fit within the 3 investment themes, that the Plan is deliverable and that there will be appropriate capacity, capability and management systems in place to manage the funding effectively.
The assessment is non-competitive and does not constitute a pass or fail gateway, unless there is substantial deviation from the Funds aims and objectives. Where queries, or areas of concern, are raised during the course of the assessment DLUHC will work with towns to resolve these areas with the aim of approving Plans as soon as possible in the Autumn.

We (local authority) have an existing programme/project that we had to pause due to lack of funding. Can we repurpose the existing programme/project?

Town Boards must engage and co-design the plans with communities, businesses and residents to reflect local priorities drawing on available evidence and data gathered during community engagement.
Town Boards may use the funding to complement activity already underway via other government funding or to fund projects that have otherwise been paused; however, decisions on the interventions a Town Board wishes to pursue must be grounded in community engagement.
Town Boards must ensure any existing projects they want to support are aligned with the 3 themes of the fund
Safety and Security
High streets, heritage and regeneration
Transport and connectivity

What impact will purdah and the pre-election period have on local authorities’ ability to engage with their local communities to develop their plan?

We would not expect community engagement where led by a third-party organisation and/or by non-elected members of the board to contravene the code of recommended practice. However, it is the responsibility of councils to satisfy themselves that all activities undertaken during this period are within the parameters of the code. Councils should seek advice from their returning officer and/or monitoring officer, legal or communications colleagues.

What happens if a town isn’t ready to submit their plan by 1 August? Will they lose out on funding?

Town Boards should move as quickly as possible to engage the local community and work up their vision and Long-Term Plan. From 1 April 2024, Town Boards should submit their Long-Term Plan to DLUHC. The final deadline for submitting plans is 1 August 2024 for tranche 1 towns. Further details on how to submit will be published in supplementary guidance in spring 2024. The closer to 1 April 2024 the Long-Term Plan is submitted, the sooner the funding can be unlocked by DLUHC.
Town Boards will be supported to develop their plans by the DLUHC area teams and the Towns Unit.

What happens after 3 years? Can the investment plan include interventions to be delivered over a longer time sale than 3 years?

The Long-Term Plan should comprise a 10-year vision, which clearly identifies the longer-term priorities for the town, and a 3-year investment plan as an annex.
The programme has been designed to provide long-term certainty and facilitate strategic thinking. We know, however, that towns will want to retain flexibility and the ability to amend plans as they develop, as well as reflect the context and changing priorities of local people.
Following approval of the Long-Term Plan, funding will be released over a 10-year period and local authorities have the flexibility to spend it as necessary during this time, with light touch assurance from DLUHC.

Question 5

5.  Additional policy Q and A

Accepted Answer

5.1. High Streets and Towns Task Force

How is the High Streets and Towns Task Force different from the current High Streets Task Force? Will they run at the same time?

After 5 years of delivery, the High Streets Task Force is due to conclude in 2024.
We are currently developing the new High Streets and Towns Taskforce which will be operational in late 2024.
The new High Streets and Towns Task Force will provide each selected town with bespoke, hands-on support from place-making experts. It will work to boost capacity and skills amongst Town Boards, helping with the implementation of the interventions as set out in their Long-Term Plan and providing advice on the ‘how to’ of delivery’.
We’ll look to cluster towns that are pursuing similar interventions or have similar characteristics, e.g. coastal towns, to work with them on design and delivery, maximising value for money, encouraging shared learning and networking between towns.
We will also be establishing a new expert panel to provide a more strategic, cross-cutting perspective on thematic issues relevant to the 3 investment priorities and content of towns Long-Term Plans. More information on this will follow.

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