Laura Sharman 18 June 2018

Councils warn about ‘damaging’ economic development funding cuts

One in seven local authorities have had their funding for economic development cut over the past five years, according to new research.

The Institute of Economic Development (IED) found more than a third (38%) of councils have seen their budget cut by more than 25%, while a further 32% said that it had fallen by less than a quarter.

Only 10% of those surveyed said they are expecting an increase in economic development funding as a direct result of retaining business rates, with 37% warning no new funding will be made available.

The IED said this research raises serious questions about councils’ ability to meet the aspirations of the government’s Industrial Strategy.

Executive director of the IED, Nigel Wilcock, said: ‘The Industrial Strategy represents a watershed moment for economic development and delivering the strategy and associated policies is a vitally important activity within the UK.

'Yet any amount of wishful economic development thinking from government will be undeliverable if the resources of local delivery agencies are being cut to the point where they will be unable to turn the broad-brush strategy into tangible outputs.’

SIGN UP
For your free daily news bulletin
Highways jobs

Director of Regeneration & Development

Harrow London Borough Council
circa £125,000
Harrow represents all that’s good about outer London life. Harrow, London (Greater)
Recuriter: Harrow London Borough Council

Director of Housing

Harrow London Borough Council
circa £125,000
Harrow represents all that’s good about outer London life. Harrow, London (Greater)
Recuriter: Harrow London Borough Council

Director of Environment

Harrow London Borough Council
circa £125,000
Harrow represents all that’s good about outer London life. Harrow, London (Greater)
Recuriter: Harrow London Borough Council

Loaders (Morpeth)

Northumberland County Council
£18,887 - £19,264
You will provide an efficient and effective refuse collection and recycling service. Morpeth, Northumberland
Recuriter: Northumberland County Council

Assurance Officer

Northumberland County Council
£29,174 - £32,798
We are searching for a confident and focused individual who will bring enthusiasm to the role.  Northumberland
Recuriter: Northumberland County Council

Partner Content

Circular highways is a necessity not an aspiration – and it’s within our grasp

Shell is helping power the journey towards a circular paving industry with Shell Bitumen LT R, a new product for roads that uses plastics destined for landfill as part of the additives to make the bitumen.

Support from Effective Energy Group for Local Authorities to Deliver £430m Sustainable Warmth Funded Energy Efficiency Projects

Effective Energy Group is now offering its support to the 40 Local Authorities who have received a share of the £430m to deliver their projects on the ground by surveying properties and installing measures.

Pay.UK – the next step in Bacs’ evolution

Dougie Belmore explains how one of the main interfaces between you and Bacs is about to change.