Older industrial towns and cities in England could deliver £13 billion in untapped economic potential, if government provides the necessary support to unlock local economic opportunities and break down place-specific barriers to growth, according to Local Government Association analysis.
Commissioned by the LGA, the analysis – which strips out national, sectoral and regional trends to pinpoint genuinely local economic potential – highlights the huge role local government has in delivering economic growth.
It looked at older-industrial towns and cities, many of which often face challenges of slow job growth, low pay, worklessness and low skills, inadequate infrastructure (including digital) for the modern economy.
However, they are also where local leaders, with properly resourced councils, could make a significant difference in tackling local economic challenges, unlocking local and better jobs, increasing local prosperity and boosting opportunities for local business.
Local authorities were selected based on the Recovery or Stagnation paper, produced by Sheffield Hallam University, and its classification of ‘older industrial towns.’ The figure for impact stands at £12,939,000,000 taken collectively.
In the analysis, some of the places have out-performed the expectations of growth during the time period assessed, suggesting that the £13 billion is a bare minimum that could be seen with the proper investment.
This is part of wider work by the LGA to highlight and profile the role of local government in delivering inclusive growth ahead of the Autumn Budget. This analysis indicates how areas that were once the engines of national growth could become so again.
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, in both urban and rural areas.
The decision to focus investment in mayoral areas underlines the challenge for those areas yet to secure a devolution settlement. Councils across the country stand ready now to play their part in driving economic growth; their communities and local businesses cannot wait for decisions on devolution to benefit from new investment and the prosperity that creates.
The LGA is calling for:
- Greater clarification on how the four new growth funds announced earlier this year will operate and the total resources available to support inclusive growth across England.
- Properly resourced councils so that they can provide key services creating conditions for economic growth (e.g. planning, transport), and address barriers to work, such as poor health and housing.
- Every area to receive funding to support local inclusive growth ambitions, with funding allocated through a transparent formula based around need rather than operating a competitive bidding process.
- Long-term funding – it takes time to overcome challenges and deliver economic opportunities. Councils and the private sector need to have confidence that investment is secured for the longer-term.
- All of local government to have funding and powers to plan a locally responsive employment and skills offer for their residents and employers, which is so critical to delivering inclusive growth.
Cllr Tom Hunt, Chair of the LGA’s Inclusive Growth Committee, said: “England’s towns and cities have a proud industrial heritage and significant potential to be drivers of economic growth.
“Economic growth is the number one priority of the Government, so providing sufficient funding to councils – who can also break down barriers to inclusive growth by using their frontline services to improve people’s health, wellbeing and prosperity – is the smart way to drive up prosperity.
“Only councils have the detailed knowledge of their communities and business and are best placed to work with investors, communities, their combined authority partners, where they exist, to unlock economic potential and better jobs.
