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Ministry fails to bid for Brexit preparation cash

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The Ministry of Housing, Communities & Local Government will not receive any funding to prepare for exiting the European Union as it did not put in a bid to the Treasury.

A total of £1.5bn funding was allocated to 20 different government departments as part of the spring statement but MHCLG was not on the list.

A spokesman for the Treasury told LGC the omission was due to the fact it had not received a bid and business case from the ministry. In a written statement issued by chief secretary to the Treasury Elizabeth Truss yesterday she said the £1.5bn is for “departments and the devolved administrations to prepare” for Brexit.

MHCLG told LGC it had not submitted a bid because it had reprioritised and made efficiencies within the ministry’s existing budgets in order to fund preparations for Brexit.

The ministry said it will continue to work with local government to plan for a number of EU exit scenarios, and work across government departments to understand the implications of Britain’s withdrawal from the EU.

The departmental allocations mean half of a £3bn pot set aside by the chancellor in the autumn Budget have now been distributed. The next £1.5bn is due to be allocated next year.

The three largest allocations from the Treasury were to the Home Office, the Department for Environment, Food & Rural Affairs (£310m), and HM Revenue & Customs, receiving £395m, £310m and £260m respectively.

Other departments which did not put in a detailed business plan include the Department for Education and the Department for Work & Pensions.

This all comes in the week that Northern Powerhouse minister Jake Berry told MPs that devolution could almost be regarded as “the golden thread of Brexit”.

He said: “If we want to take back control, we should bring powers not just back from Brussels to London but from London to the regions.” 

 

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