LGA publishes report on councils' role in enabling inclusive economic growth
The Local Government Association (LGA) has published a report identifying councils' potential to unlock £276bn of untapped economic opportunity through place-based industrial strategies. The report, produced in partnership with the Future Governance Forum, finds that councils already contribute £149bn annually to the national economy, including £117bn to local economies through employment, procurement, and service provision. The analysis reveals that non-devolved areas could add £77bn to economic output, equivalent to 12.6% of local economic activity, if local barriers to growth were addressed. The report recommends that government introduce sustainable multi-year funding frameworks with greater fiscal flexibility, establish structured engagement mechanisms between local, regional and national tiers, and co-design Local Growth Plans with local authorities. It calls for councils in non-devolved areas to develop growth and investment plans, while recommending the LGA build an evidence base on inclusive growth best practice and provide targeted support for non-devolved areas. The report emphasises councils' four-pillar role as growth facilitators, service providers, orchestrators and anchor institutions in driving economic development.