The future of growth funding

This study explores future models for local growth funding. Commissioned by the Local Government Association for England and Wales in December 2023, the study focuses on funding for central and local government activities that explicitly aim to increase economic growth, development, regeneration, and inclusion in local areas. This is often referred to as ‘local growth’ funding, but explicitly relates to funding for local economic growth, development and regeneration initiatives and activities.

National political parties made growth one of their primary missions at the 2024 General Election. This analysis, conducted in consultation with local and national government, explores future models for funding for local economic growth, development and regeneration initiatives and activities, drawing on lessons learned from recent policy and practice.  

The analysis draws on lessons learned from recent and live funding programmes and initiatives. Those reviewed include:  

• Levelling Up Fund
• UK Shared Prosperity Fund
• Towns Fund
• Community Renewal Fund
• Community Ownership Fund
• European Structural Funds including the European Regional Development Fund and European Social Fund
• Future High Streets Fund
• Growth Deals
• City Growth Deals
• Regional Growth Deals
• Regional Growth Fund
• Rural Growth Networks
• Enterprise Zones
• Freeports
• Business Improvement Districts
• Investment Zones
• Strength in Places Fund
• Growth Hubs.

This study takes a systemic approach, exploring a broad range of factors and features needed to address this agenda, including: 

• skills, expertise, capacity, and capability
• factor inputs such as capital, infrastructure, technology, skills and labour
• relationships, understanding and partnerships
• institutional remit, statutory responsibilities, and capabilities
• the delivery capacity and capability to design, manage, deliver, monitor, evaluate and continually improve 
• clarity of mission, objectives, relevance, and stability – which enables and attracts private sector investment and activity
• agility and responsiveness to adapt and change to economic events, trends, and challenges
• the long-term commitment, capacity, capability, and approaches needed to address the levelling-up challenge.