A review of funding allocations in England to address geographical inequalities

Abstract

This report analyses 48 funding streams in operation in England from 2014 to 2024, for local and regional areas that are either explicitly aimed at addressing geographical inequalities or are likely to have a direct or indirect impact on such inequalities. We explore mechanisms for allocation and delivery. We aim to provide actionable lessons for policy reform to improve funding allocation mechanisms, positively impacting policy, people, and places. Our analysis emphasises the complex nature of the funding landscape.

Key findings include that:
•A very limited number of funds studied are specifically geographically targeted, with a high proportion of funds allocated to administrative geographic areas. However, where funding has been available to particular kinds of administrative areas, there might still be an implicit/’de facto’ targeting of geographic inequality in the spread of funding to certain administrative areas across urban and rural areas in England.
•Whilst the majority of the funds analysed focus on reducing geographical inequalities, only a quarter of the funding provided is targeted at addressing spatial inequalities. Rather, almost three-quarters of the total funding considered is focused on achieving aims that are not geographically specific.
•The majority of funds analysed involved competitive processes for allocation, although formula funding made up the greatest proportion of total funding awarded.
•Recent years have seen the introduction of multiple, often short-term funding streams.
•More than half of the funding programmes analysed had as one of their aims to reduce geographic inequalities or support disadvantaged regions. This would appear to be positive in terms of the potential to address geographical inequalities. However, this only represents 25% of the total funding analysed.

This report is for the Improving Public Funding Allocations to Reduce Geographical Inequalities project funded by the ESRC.

The project brings together a highly experienced interdisciplinary team from the Universities of Birmingham, Bristol, De Montfort, Newcastle, Nottingham, Plymouth and Sheffield, together with the National Centre for Social Research and Metro Dynamics.