Local growth funding: improving and simplifying monitoring
Progress update explaining the process for rationalising output and outcome monitoring indicators for future funding.
Context
On 4 July 2023 we published how the Department for Levelling Up, Housing and Communities (DLUHC) will simplify the local growth funding landscape for local government, including a new strategy to simplify and maximise the effectiveness of our monitoring and evaluation activity for local growth funding while minimising the burden on places.
We have already:
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Published monitoring and evaluation guidance in a central location on GOV.UK to make it quicker and easier for places to find the relevant guidance.
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Removed the requirement for places to conduct local-led evaluations in most situations: DLUHC conducts evaluations of its local growth programmes and recognises that mandated local-led evaluations have imposed disproportionate burdens on local authorities for the additional insight produced. As such we will focus on strengthening central department-led evaluations, reducing local burdens while ensuring that insights are targeted and deliver value.
We will also be embedding the following measures into the design of any new funding programmes:
- Developing data burden reduction principles to 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.
- Rationalise the number of output and outcome monitoring indicators, reducing duplication: currently there are around 400 indicators in use across DLUHC local growth funds.
- Ensure data submission frequency is consistent wherever possible.
The information provided on this page gives more detail on how we intend to rationalise the number of output and outcome monitoring indicators for new funding programmes.
How we use monitoring data
Monitoring is the formal reporting and evidencing that projects and outcomes are successfully delivered and milestones met. Output and outcome reporting are two typical aspects of project monitoring alongside other aspects such as finance, risk or delivery milestones. This information is important to understand and DLUHC uses it in several ways for Levelling up programmes. We use monitoring data, for example, to:
- Support assurance processes which help us have confidence that the money is being spent on agreed outputs.
- Understand how delivery is progressing against planned targets and whether there are any issues. The information supports us to manage risks and help maximise value for money.
- Inform evaluation activity to help us better understand ‘what works’, ‘what doesn’t work’ and ‘why’, which can support future decision making.
- Communicate the progress and impact of the interventions to key stakeholders.
The rational for change
An analysis of 13 local growth funds delivered by DLUHC identified around 400 different output and outcome indicators that had been provided in lists for places to report against, and in some instances, there are inconsistencies in these indicators across funds. We have published this . This is only a partial picture of all indicators in use for these programmes as it doesn’t include custom indicators that places can create and report on too.
There are advantages of a long list of output and outcome indicators. Notably it allows for us to collect very specific data on what is being delivered for a specific project. However, we believe a simplified, rationalised list of output and outcome indicators that would form the base of all monitoring activities for DLUHC levelling up programmes would be better. Notably, it would make it easier for all stakeholders to navigate and thereby reducing burdens, better facilitate learning on what works through more considered asks on the data needed, as well as allowing for better communication on the portfolio of DLUHC Levelling up funding.
Therefore, we intend to create a standardised list of output and outcome indicators. For each local growth programme DLUHC delivers, the Department will select the relevant indicators from the standardised list. To ensure consistency going forward we do not intend to change individual indicators on the list, unless there is strong justification. However, we may add new indicators to cover off potential new policies areas.
The indicator framework we create for monitoring DLUHC local growth funding will be complementary, and align where appropriate, with data published on the Office for Local Government Data Explorer.
Our approach to creating a simplified indicator framework
We will approach creating a standard indicator list from first principles. This will help us to identify the most useful indicators to include and those that can stand the test of time needing little to no amendments.
To create a standardised list of output and outcome indicators we will follow two steps:
1. Develop high-level Theories of Change, for key themes included in old and in-development local growth funds. We plan to focus initially on the following themes: regeneration, transport, business support, skills, sport and culture. We will explore what further themes can supplement these depending on the scope of future interventions.
These theories of change will outline the mechanisms for how interventions within specific themes contribute to achieving levelling up by reviewing the evidence base. Through doing this, we can identify the main outcomes that are expected to materialise, which will enable us to focus on a smaller number of indicators through our monitoring activity. Approaching this through intervention themes which can be common across programmes delivered by DLUHC as opposed to through the lens of a specific programme should ensure that the indicators are relevant across programmes.
2. Engage stakeholders including external experts on local growth, other government departments who have expertise in the thematic areas and some local authorities on our draft indicator framework. Through this engagement we will test the Department’s thinking on an indicator framework, ensuring the indicator framework works for all and identifying opportunities to align indicators to those already in use in other departments.
Next steps
We will be developing our draft indicator framework for the themes outlined above and engaging with stakeholders over summer 2023, with an intended publication on the indicator framework later in the year. This will form part of a wider publication where we will detail a framework for how we will approach monitoring and evaluation for local growth funds delivered through DLUHC, including the commitments outlined earlier.
For more information on the work of the Department on local growth indicator framework, please contact david.barkshire@levellingup.gov.uk.