The Government must provide stronger institutional support to help council finance directors manage investment risks while driving local growth, according to a new report from think-tank Localis.

In Ride the Wave – balancing investment risk and opportunity to guide urban renewal, Localis argues that finance chiefs face increasing tension between attracting large-scale private investment and fulfilling strict financial management duties.

The report, supported by Core Cities UK and CIPFA, warns that limited commercial and financial expertise within local government could hinder regeneration efforts and urges English authorities to learn lessons in managing place-based investments from the devolved Governments of Scotland, Wales and Northern Ireland.

Key recommendations include creating clearer commercial frameworks for structuring Public-Private Partnerships (PPPs), simplifying access to funding and investment advice, and establishing a single 'front door' for matching local investment projects with public financial institutions.

Localis also calls for central government to strengthen in-house capacity, promote cross-boundary collaboration, and harmonise local growth outcomes across councils and combined authorities.

Report author and senior Localis researcher, Sandy Forsyth, said: ‘The key argument of Ride the Wave is that for the government's growth agenda to succeed, local investment risk must be balanced with opportunity within a new, evolving ecosystem of mayoral strategic authorities and national financial institutions.

‘The core challenge lies in the tension between driving investment pipelines for growth and the need for fiscal prudence. To resolve this, fundamental issues related to local government capacity, institutional maturity, and outcomes evaluation must be addressed.’

Check out: Navigating the new procurement landscape by Localis chief executive Jonathan Werran.