A new NIAO report has said the Deals could generate significant local benefits, but only if action is taken to accelerate implementation and safeguard public spending.

Launched in 2018, the programme represents up to £1.3 billion of UK Government capital investment aimed at transforming the economy and regenerating communities. However, Comptroller and Auditor General Dorinnia Carville found that, while collaboration between partners is constructive and evolving, overall progress has been slower than expected.

By March 2026, around £1.2 billion of central government funding remained unspent, with only a small number of projects operational. Assuming annual inflation of three per cent, the report estimates the real-terms value of funding is eroded by about £37 million for every year of delay.

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The report also highlights a 15-year funding window (from the point Deals are signed) that is not currently being formally recognised and managed as a strategic risk, despite potential implications for funding if delivery does not speed up.

Dorinnia Carville said: "With only a small number of projects operational, it is not yet possible to provide a proper assessment of long-term outcomes. However, there are already weaknesses in arrangements for capturing costs and ensuring value for money. Without decisive action to address these issues, there is a risk that potential benefits will not be maximised. Given the significant public investment committed, my Office will continue to closely monitor both the ongoing delivery of City and Growth Deals, and the action taken in response to the recommendations made."