Frontier Economics and BMG Research were commissioned by the Ministry of Housing, Communities and Local Government (MHCLG) to undertake an evaluation of the Towns Fund. This report sets out emerging, indicative process and impact findings from the first 7 case studies undertaken as part of the evaluation
GOV.UK writes:
This report sets out emerging, indicative process and impact findings from the first 7 case studies undertaken as part of the evaluation.The intervention-level impact evaluation examines the individual projects funded by the Towns Fund in detail to understand how they create impact. The evaluation focuses on the key mechanisms behind the projects’ outcomes, exploring how and why these impacts occur.
The indicative process findings relate to the design and planning, structure and delivery, and monitoring and evaluation of the Towns Fund. The impact findings relate to emerging findings from the intervention-level evaluation for the evaluation questions set out in the feasibility report. The case studies in this report were selected from completed projects and may not be representative of all projects funded by the Towns Fund. Selection criteria for the case studies are set out in Section 5.2 of the feasibility report. All findings should be considered preliminary and are subject to change following further analysis and data collection from 2025 to 2026.
Emerging process evaluation findings
- Local authorities reported that the funding approaches for Town Deals and the Future High Streets Fund enabled them to meet council objectives. However, the allocation-based approach was seen as better suited to target areas with the greatest need.
- Overall, project teams (local authorities for both funding streams and Town Deal Boards for Town Deals) reported that design and planning worked well to align with the needs and priorities of local areas. This was facilitated by the involvement of a wide group of stakeholders in design and planning.
- Similarly, stakeholders reported that delivery went smoothly overall. However, they noted some challenges at the delivery stage due to contextual factors and a lack of funding for future project operations.
- Local authorities had mixed views on the proportionality and value of MHCLG monitoring requirements.
Emerging impact evaluation findings
The projects included in the7 initial case studies have delivered their immediate expected outputs. These projects were diverse and include the redevelopment and reopening of a local sports centre in Kidsgrove, the redevelopment of a community hub in Loftus (Duncan Place, which includes a library and youth and family services), the regeneration of areas in and around the town centre in Northallerton and Yeovil, the deployment of electric buses in Hereford, and the construction of modern learning facilities at local colleges in Norwich and Redcar.
- The facilities delivered by the pride in place and local wellbeing-related projects appear to drive changes in residents’ participation in the community and satisfaction with local amenities.
- Early evidence suggests that the projects are well used and are driving early changes in local satisfaction and attitudes, although evidence on wider changes in overall pride in place is inconclusive at this stage.
- There are early signs that direct exposure to facilities is linked to higher resident life satisfaction. However, as with pride in place, it is not possible to draw a causal link from the available evidence, and evidence on changes in other wellbeing metrics is inconclusive.
- It is too soon to assess the wider changes in economic and employment outcomes as the projects have only recently been completed.
The evaluation is currently underway and runs until March 2026. The final report is expected to be completed in Spring 2026. The final report will include process and impact evaluation findings from the full set of case studies, as well as findings from the programme-level econometric analysis and findings from the value-for-money assessment.
