Councils have been handed a new practical toolkit to help them secure private investment and drive local growth, as shrinking public funding puts pressure on authorities to find alternative sources of capital.
The Local Government Association's new guide, Attracting Investment for Inclusive Growth, aims to help local authorities engage more effectively with the private sector, better support businesses, and bring investment into their areas.
Produced by Henham Strategy, it sets out the key barriers councils face in attracting investment, explains the different types of investors and their priorities, and offers a framework for structuring investment propositions that align public value with private capital.
The publication of the report follows the end of UK Shared Prosperity Fund financing in March 2026 that has left some councils without dedicated resource to support investment activity.
The LGA estimates councils already contribute £117bn to the national economy each year — but with the right support, could unlock a further £276bn of growth.
Cllr Carl Cashman, vice chair of the LGA’s Inclusive Growth Committee, said: ‘Councils and the private sector are natural partners – both need and support each other, and when they are in sync the return on investment far outstrips what they put in to begin with.’
