The role of councils in delivering inclusive growth
Inclusive growth is “impossible” without local authorities, because “they deliver the housing, the infrastructure, the training and the community support”.
That’s according to Mayor of South Yorkshire Oliver Coppard, who was speaking at the launch of the LGA’s ‘A force for growth’ report, which makes a compelling case for why local authorities are critical to the delivery of local inclusive growth ambitions across England.
As Chair of the LGA’s Inclusive Growth Committee and Leader of Sheffield City Council, I was delighted to host the launch at the Millennium Gallery in Sheffield in December, where we heard from a range of speakers from business, health and higher education.
Local authority representatives were joined by delegates from combined authorities, the civil service, further and higher education, the NHS, the private sector and beyond – united under a shared belief that investing in councils is investing in local growth
Local government’s role in driving inclusive growth is broad – as growth enablers, service providers, orchestrators and anchor institutions. Its reach into every community enables action that strengthens local economies and expands opportunity.
Initial analysis, released at the LGA’s annual conference in Liverpool last July, revealed that councils across England could unleash £276 billion of untapped economic potential – equivalent to more than a tenth of national output.
In addition, local authorities also inject £117 billion annually into local economies as anchor institutions, through their role as employers, service providers and investors.
‘A force for growth’ highlights a range of best practice from across the sector. Wyre Forest District Council, for example, pushed ahead locally to create the South Kidderminster Enterprise Park, which has been used by 17 businesses and provided £25 million to the local economy.
In addition – building on the legacy of European Capital of Culture in 2008 through to the hosting of the Eurovision Song Contest in 2023 – Liverpool City Council has capitalised on the city’s strong cultural assets to drive inclusive growth, generating in excess of £6 billion in 2023 alone, and employing 58,000 people.
The council has now partnered with the Liverpool City Region Combined Authority to bring the benefits of cultural tourism to the whole region.
It was fantastic to work with the Growth and Reform Network, which produced the report in partnership with the Future Governance Forum thinktank.
We are clear this is just the beginning of a wider conversation to ensure that local government’s role in unlocking inclusive economic growth is not only recognised, but actively promoted.
The report identifies several areas for further action, including the need to provide local authorities with sustainable, multi-year funding for growth with fiscal flexibility; and a desire for government to establish structured mechanisms for continuous engagement on economic development between local, regional and national tiers in all areas.
If you would like to work with the LGA on this mission, or want to hear more about the report, please contact localgrowth@local.gov.uk
- Read ‘A force for growth’ in full on the LGA website. See also ‘Inclusive economic ecosystems’.