The Institute of Economic Development (IED) has launched a manifesto calling for local authorities to be given statutory powers over economic development.
Launched at the IED’s annual conference today (7 November), the manifesto is described as a “radical agenda for change in the run-up to the likely 2024 general election”.
“With the government confirming its intention to transfer LEPs to local government from April 2024, the pivotal economic role of councils for realising the country’s growth ambitions has been articulated,” said Tom Stannard, IED chair and chief executive of Salford City Council, at the conference.
“Giving local authorities a legal duty over economic development would create a clear accountability structure, which in turn would make it simpler and more attractive to UK and international firms and financial institutions to invest in places. It would also enable the development of local strategic economic development plans that respond to the views of local businesses, as well as the wider community.”
Stannard noted that the IED had, with Solace, called for councils to be given statutory powers over economic development earlier this year “so that they can more effectively help create high-quality jobs, attract investment into local areas, and turbocharge the UK plc”.
The IED’s manifesto “seeks to move this discussion on and we welcome a dialogue with government on establishing the economic development duty early in the next parliament,” Stannard added.
The IED is an independent professional body representing economic development and regeneration practitioners working for local and regional communities.
Supporting pillars
The manifesto contains six “supporting pillars” which the IED considers “critical for success”. Among them is devolution. As the issue “moves up the political agenda, and LEP core functions are transferred, it will be essential for local authorities to have in place the models to ensure that local evidence can be gained, effective policies developed and implementation delivered”, the IED stated.
The body is therefore calling for a national economic/industrial strategy which sets the agenda for the UK over a five-year period; a requirement for local authorities to develop an accountable five-year economic strategy/strategic economic plan; a single settlement funding pot approach built on ‘trailblazer’ devolution deals; and a multi-year settlement approach, rather than annual spending reviews.
Underpinning all economic development is a “requirement for a more stable and long-term funding landscape”, the IED added. It is calling for an end to the micro competition for capital funding as part of the single settlement funding pot approach, “with any funding settlement with government and wider government programmes, such as UKSPF, operating over a longer timeframe and coinciding with a five-year economic strategy horizon”.
Some of the other supporting pillars include implementing a place-based approach to tackle climate change and move towards net zero, along with the need to grow businesses, attract investment into local areas and support exports.
Skills development, workforce assessment and the development of clear pathways into work would also be a key element of the economic strategy, the IED said. As such, it is calling for full devolution of 16-18 and 19+ skills and training funding, to local government and/or mayoral combined authorities, while the local authority statutory economic development function would also lead on local skills improvement plans under emerging business boards being created during LEP core function transfers.
Finally, a legal duty for economic development remit would need to be underpinned by an experienced and stable workforce, the IED noted. “Under-investment in economic development and funding settlements for local authorities has meant important economic development skills have been lost to the profession and there is a need to rebuild them,” the body said.
The IED is calling for co-investment in a national economic development CPD standard with the IED to support future workforce development and succession planning across the profession.
—————
FREE weekly newsletters
Subscribe to Room151 Newsletters
Follow us on LinkedIn
Follow us here
Monthly Online Treasury Briefing
Sign up here with a .gov.uk email address
Room151 Webinars
Visit the Room151 channel
