Councils in England have £276 billion of untapped economic potential
Councils across England could unleash £276 billion of untapped economic potential with government support to break down “place-specific barriers”, according to new analysis.
Commissioned by the Local Government Association (LGA), it strips out national, sectoral and regional trends to pinpoint local economic potential – identifying areas where local leaders could make a significant difference in tackling the local economic challenges.
It comes as part of wider work by LGA to highlight and profile the role of local government in delivering inclusive growth.
The analysis – produced by the Growth and Reform Network – shows that urban centres dominate with a £234 billion share of the opportunity, but rural areas also present untapped potential worth a minimum £42 billion, equivalent to nearly 10.7% of the rural economy.
Non-devolved areas, meanwhile, represent at least £77 billion in potential – equivalent to nearly 12.6% of their local economic output.
It comes as government has proposed that Mayoral Combined Authorities hold responsibility for Local Growth Plans. However, the LGA said that councils around the country also have a unique and critical role to play in driving local, inclusive economic growth.
As such, the trade body is calling for greater clarification on how the four new growth funds announced at the recent Spending Review will operate, and the total resources available to support inclusive growth across England.
It has also called for councils to be “properly resourced” so they can provide key services creating economic conditions for growth, as well as for every area to receive funding to support local inclusive growth ambitions.
Additionally, it has said all local government should have funding and powers to plan locally responsive employment and skills provision for their residents and employers.
LGA chair Councillor Louise Gittins said: “Growth is a shared national, regional and local priority, which we all have a part to play in.
“Only councils have the detailed knowledge of their communities and business and are best placed to unlock economic potential and better jobs.
“Councils can also break down barriers to inclusive growth, by using their frontline services to improve people’s health and wellbeing, as well as employing people in their own right and buying from their local places.
“Mayoral Combined Authorities, while trusted to deliver, can only realise the full economic potential of their areas if their constituent councils are able to work in partnership and fire on all cylinders.
“Nowhere should be held back in delivering for their communities.
“Economic growth is the number-one mission of the government. Providing sufficient funding is a very cost-effective way to ensure all councils, including those not in combined authority areas, can fully play their part in delivering local inclusive growth – driving up living standards and funding vital public services.”
