UK Government: verdict is still out on local economic policy

𝗪𝗵𝘆 𝗱𝗼𝗲𝘀 𝘁𝗵𝗲 𝗨𝗞, 𝘄𝗶𝘁𝗵 𝗶𝘁𝘀 𝘀𝘂𝗰𝗰𝗲𝘀𝘀𝗳𝘂𝗹 𝗲𝗰𝗼𝗻𝗼𝗺𝘆, 𝘀𝘁𝗶𝗹𝗹 𝗳𝗮𝗰𝗲 𝘀𝘂𝗰𝗵 𝘀𝘁𝗮𝗿𝗸 𝗿𝗲𝗴𝗶𝗼𝗻𝗮𝗹 𝗲𝗰𝗼𝗻𝗼𝗺𝗶𝗰 𝗮𝗻𝗱 𝘀𝗼𝗰𝗶𝗮𝗹 𝗶𝗻𝗲𝗾𝘂𝗮𝗹𝗶𝘁𝗶𝗲𝘀?

The numbers tell a tale of imbalance, with some regions trailing behind even the historically weaker areas of former East Germany.

New government or not, we seem miles away from a game-changing policy overhaul.

But how did we arrive here?

Let’s unpack the journey…

🌍 𝗧𝗵𝗲 𝗗𝗲𝗰𝗮𝗱𝗲𝘀 𝗼𝗳 𝗖𝗵𝗮𝗻𝗴𝗲

🔸 **1980s: The Shift to Local**

Picture this: a time when national economic growth was king. The idea was simple—growth at the top would eventually trickle down. But as the workforce faced widespread job losses, assumptions crumbled. Enter local heroes—authorities began crafting economic initiatives. Enterprise Zones and Urban Development Corporations were born, breathing some hope into local economies, but ultimately to limited and narrow to transform them.

🔸 **1990s: The Call for Integration**

As challenges mounted, the need for cohesive strategies became clear. Enter the Single Regeneration Budget and the Rural Development Commission, offering more coherent programmes for selected urban and rural areas.

🔸 **2000s: Rise and Decline of RDAs**

With high hopes, Regional Development Agencies (RDAs) emerged, aiming to streamline regional economic coordination. They delivered impressive results but faced hurdles—democratic legitimacy questions, tight budgets, and alignment issues with national policies. Despite their impact, they were closed by the new government elected in 2010.

🔸 **2010s: The LEP Era**

Local Enterprise Partnerships (LEPs) arrived with potential but lacked clarity, resources, and for some – democratic legitimacy. With restricted financial resources and blurred roles, they struggled to plan strategically. By 2024, LEPs exited the stage, handing over responsibilities to local authorities.

🔍 **The Path Ahead**

Despite lessons from past decades, progress remains elusive. Since the new government took office in July 2024, we’ve heard encouraging sounds, but we’re hungry for more than promises. We need substance.

Here’s what’s essential:

👉 **Vision**: We need clear, compelling objectives. What is devolution for? name its 5 priorities or key aims.

💸 **Funding**: Sustainable financial frameworks are critical. What’s the future settlement beyond UKSPF?

🤝 **Policy Alignment**: Bridging the gap between local and national policies is critical.

🏗️ **Capacity Building**: Reinvigorating local economic development capabilities after years of neglect

hashtag#Localeconomicdevelopment is part of the solution to national economic growth – let’s use it!