GovWire

Round two application process

When does the application window open and what is the closing date?

Work is ongoing to open the online portal for the second round of the Levelling Up Fund. The application portal will be opened as soon as possible and, once open, will be live for 2 weeks for applicants to put forward their bids. We will update GOV.UK with the planned date for the portals launch at the earliest opportunity.

We encourage applicants to use this additional time to develop their bids and make use of the range of fund specific guidance, webinars and technical teach-ins available on GOV.UK, to support the development of high-quality bids.

How can places apply for this funding round?

A link to the application form will added when it is available. In the meantime the published application guidance contains questions that will be asked in the LUF Round 2 application form. Before applying, applicants should also familiarise themselves with the prospectus and the technical note that are also available on gov.uk.

Will there be technical support provided to help organisations to develop their bids?

Yes, along with the published prospectus, technical note and application guidance, we have also published recordings of the webinars held with each nation, along with their related slides. As well as this, we have also published a series of technical teach in videos, covering areas of the assessment criteria such as the economic case, monitoring & evaluation and deliverability, along with the slide packs used in these videos.

Capacity funding: can you provide more details on when it will be paid out, what it can and cant be used for and the time period it is meant to cover.

A single payment of 125,000 was paid at the end of May to those places who are now eligible to receive capacity funding, and have not previously received capacity funding relating to the Levelling Up Fund. The capacity funding will be made available as a non-ringfenced RDEL payment made through Section 50 of UK Internal Markets Act. Places are expected to use that to develop high-quality bids to the Fund. The one-off payment will cover the life of the Fund.

All authorities in Scotland, Wales and Northern Ireland received capacity funding as part of the first round of the Fund, so will not receive further capacity funding in round 2, even if they have now moved to be a Category 1 place in the Index of Priority Places.

Bid questions

Evidence of spend in the 2022/23 financial year is a requirement of successful bids. What constitutes spending and are there restrictions on types or amount of spending?

We are looking to fund projects that can, in the 2022/23 financial year, demonstrate some capital spend on the project(s) they are bidding for. The types of capital expenditure that we would typically expect to see are as follows -

• Project Management
• Design Fees
• Legal Fees
• Site Acquisition Cost
• Property Acquisition Cost
• Enabling works Pre-Contract - Demolition / Site Preparation or Remediation etc
• Temporary works
• Construction Phase Cost of new build
• Construction Phase Cost of refurbishment / conversion
• Materials/Equipment
• Project insurance
• Other Fees/Costs

The proportion of expenditure against any of the headings should conform to industry norms and represent value for money.

What constitutes a capital infrastructure project? Could projects such as improvements to I.T./internet infrastructure or a portable event space be included?

The Investment Themes section of the LUF prospectus provides an overview of the types of capital projects that we may expect to see under each of the Funds investment themes. Along with this, Table B1 of the LUF technical note sets out potential outputs and outcomes from projects, and places are strongly encouraged to design their bids so that the outputs delivered align with this list where possible. We would welcome bids that are classified as capital and align with the Funds investment themes and outcomes as detailed in the published guidance.

Can we bid for a project to add onto an existing programme/project?

Yes, providing it meets the gateway and eligibility criteria. It will be important that the application demonstrates additional value from the existing programme/project. All applications will be judged according to the published criteria.

Are you still eligible to bid for funding for a project you have already received government funding for?

Yes, however bidders will need to clearly demonstrate the additional value that further investment will bring. This will be required throughout the different sections of the application, for instance as part of the strategic fit assessment we ask that bidders set out very clearly the case why government investment is needed. All applications will be judged on their individual merits according to the published criteria.

Site acquisition is stated as being an eligible cost for this fund. Where such a proposal is put forward, would the applicant have to show that they had approved plans/planning permission in place for the future redevelopment and use of the site?

The case for investment and management case of the application will need to demonstrate the strategic fit and deliverability of the proposal. Table 1 of the technical note sets out the types of areas that we would expect to see covered.

Package bids: What can be submitted as part of a package bid, can projects be divided into sub-projects and what is meant by a coherent set of interventions?

Package bids can include two or three projects. The maximum number of projects within a package bid is 3.

Package bids can include a mix of projects from the Funds three investment themes but should not include multiple unrelated investments.

Projects within a package bid should support common objectives and be mutually supportive so that the package delivers greater benefits than the individual projects would achieve in isolation, in this way demonstrating a coherent set of interventions. For example, a transport intervention and public realm regeneration project in a local high street, may together support greater footfall than the projects on their own.

Package bids must clearly explain how their component elements are aligned with each other and represent a coherent set of interventions. Package bids can be concentrated in a specific location or cover a wider area.

How has my remaining bid allowance been calculated?

Section 2 of the technical note sets out how bid allocations for the second round have been calculated for local authorities in England, Wales and Northern Ireland

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