William Eichler 04 July 2025

LGA: Councils have £276bn of untapped potential

LGA: Councils have £276bn of untapped potential image
Local economic growth © Sutthiphong Chandaeng / Shutterstock.com.

Government support overcoming place-specific barriers to growth could help local authorities in England unleash £276bn of untapped economic potential, new research suggests.

New analysis by the Growth and Reform Network identified the areas where local leaders, with properly resourced councils, could make a ‘significant difference’ in tackling local economic challenges, unlocking local jobs and boosting business opportunities.

Untapped Economic Potential

It found that most of the economic potential was in urban centres with a £234bn share of the opportunity. Rural areas also have untapped potential worth £42bn, equivalent to nearly 10.7% of the rural economy, according to the research.

The analysis, which was commissioned by the Local Government Association (LGA), also found non-devolved areas represent at least £77bn in potential, equivalent to nearly 12.6% of their local economic output.

Breaking Down Barriers

The LGA called for greater clarification on how new growth funds will operate and urged the Government to provide more funding to create the economic conditions for growth and address barriers to work, such as poor health and housing.

Cllr Louise Gittins, chair of the LGA, said: ‘Growth is a shared national, regional and local priority, which we all have a part to play in.

‘Only councils have the detailed knowledge of their communities and business and are best placed to unlock economic potential and better jobs.

‘Councils can also break down barriers to inclusive growth, by using their frontline services to improve people’s health and wellbeing, as well as employing people in their own right and buying from their local places.’

She added: 'Economic growth is the number one mission of the Government. Providing sufficient funding is a very cost-effective way to ensure all councils, including those not in combined authority areas, can fully play their part in delivering local inclusive growth – driving up living standards and funding vital public services.’

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