Councils across England could unleash £276 billion of untapped economic potential – equivalent to more than a tenth of national output – with government support to break down place-specific barriers to growth, according to LGA-commissioned analysis.
The analysis strips out national, sectoral and regional trends to pinpoint genuinely local economic potential, identifying areas where local leaders with properly resourced councils could make a significant difference.
Produced by the Growth and Reform Network, and published during the LGA’s annual conference in Liverpool in early July, the analysis is the first part of a detailed investigation into the role of local government in supporting inclusive growth, as part of the LGA’s wider work to highlight the issue.
It shows that urban centres dominate, with at least £234 billion of economic potential, but that rural areas also represent untapped potential worth a minimum £42 billion – equivalent to nearly 10.7 per cent of the rural economy.
Meanwhile, non-devolved areas – those outside formal devolution deals or the Government’s Devolution Priority Programme – represent at least £77 billion in potential, equivalent to nearly 12.6 per cent of their local economic output.
While the Government has proposed that mayoral combined authorities hold responsibility for local growth plans, councils around the country – whether they are a constituent council in a combined authority or not – have a unique and critical role to play in driving local, inclusive economic growth.
LGA Chair Cllr Louise Gittins said: “Growth is a shared national, regional and local priority, in which we all have a part to play. Only councils have the detailed knowledge of their communities and business, and are best placed to unlock economic potential and better jobs.
“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.”