Councils ‘drive forward prosperity’ across England by generating £117bn annually for local economies, research has found.

According to a report by the Growth and Reform Network, commissioned by the Local Government Association (LGA) and produced in partnership with the Future Governance Forum, councils are key to facilitating ‘inclusive economic growth’.

The report, titled 'A Force for Growth', reveals that through their work as service providers, investors, and employers, councils enable ‘local economic growth and prosperity’.

However, the research emphasises that with adequate funding and empowerment from Government, councils could ‘unlock an additional £276bn across the country’, which amounts to over a tenth of national output.

Citing the ‘critical influencing factors’ that enable councils to achieve inclusive growth, the report highlights devolution, funding and flexibility, political leadership, and connectivity across Government tiers as the four systemic facets that can ‘catalyse long-term prosperity’ if secure.

But ‘where they are weak, opportunities remain unrealised’, the LGA warns.

The research also outlines the ‘four pillars of local growth’, which refer to councils’ various contributions to the economy through their roles as growth facilitators, vital service providers, orchestrators, and economic anchors.

To support local authorities in delivering economic growth, the report calls for flexible multi-year funding, cross-tier working, co-designed Local Growth Plans, and the creation of investment plans in non-devolved areas.

Cllr Tom Hunt, Chair of the LGA’s Inclusive Growth Committee, said: ‘Councils are a force for growth. Their local knowledge, connections and deep commitment to their areas make them essential to drive forward prosperity across the country.'

He explains that the research ‘shows what councils directly deliver and what their potential is. Through their detailed knowledge of the local areas they serve, they are best placed to unlock economic potential and deliver inclusive growth.’

‘Enabling councils to be an even stronger driver of national prosperity will help to achieve prosperity for all parts of the country', he added.