A force for local growth

The Local Government Association last week published a report entitled ‘A force for growth: Spotlighting the role of councils in enabling inclusive economic growth’.

Produced in partnership with the Future Governance Forum, the report identifies the essential role that councils have to underpin inclusive growth, ensuring that our residents and businesses are central to providing that growth and benefit from the opportunities that growth brings.

The report highlighted untapped potential which when viewed by geographical areas shows:

• Urban centres, home to our largest local economies, account for the bulk of this opportunity, worth £234 billion, or almost 13 per cent of their economies.
• Rural areas could add nearly £42 billion, over 11 per cent of the existing rural economy.
• Coastal areas could contribute £42 billion, or nearly 11 per cent of their current economy.
• Non-devolved areas could add £77 billion to the economy if local barriers to growth were addressed, equivalent to 12.6 per cent of local economic output.

Councils differ in geography, authority type, political control, and economic focus, and not all prioritise growth equally. Without effective communication between national government and local councils, much of this untapped potential, especially in areas outside current devolution priorities, could be lost.

Critical influencing factors

The ability of councils to drive inclusive growth is shaped by interdependent systemic factors that go beyond individual projects or services. Through extensive interviews with local and combined authority leaders for this project, four factors were consistently highlighted:

1. Devolution: Councils increasingly operate alongside regional institutions led by mayors with overlapping responsibilities. Effective collaboration requires balancing assertive local leadership with engagement in regional strategy. 
    
2. Funding and flexibility: Financial pressure, centralised funding, and restrictive regulations limit councils’ capacity to innovate, while few incentives exist to retain growth benefits locally. 
    
3. Political leadership: Strong, consistent political vision enables councils to set priorities, attract talent, and embed inclusive growth in long-term strategy, translating plans into tangible outcomes.
    
4. Connectivity across government tiers: Poor coordination and unclear roles between local, regional, and national government can hinder delivery. Structured engagement and sustained dialogue are vital.

Together, these factors shape councils’ ability to plan, prioritise, and act, providing the context in which inclusive growth can be realised.

You can read the full report at this link

RSN Chief Executive Kerry Booth, was part of a steering group established to contribute to the project on Growth