EXPERT HUB – REPORT: SUPPORTING LOCAL GROWTH

THE PUBLIC ACCOUNTS COMMITTEE INQUIRY: SUPPORTING LOCAL ECONOMIC GROWTH 

Written evidence submitted by Professor John Tomaney, UCL Bartlett School of Planning and UCL colleagues on 25 February 2022 to the Public Accounts Committee inquiry: Supporting local economic growth

EXECUTIVE SUMMARY 

Geographical inequalities are not new, and neither are local growth strategies aimed at tackling them. As well as suffering economic disadvantage, people in ‘left-behind’ places are more likely to feel disenfranchised, ignored, sceptical about politics and there is evidence that previously strong communal bonds are fraying. As such, local economic growth must prioritise community-led approaches that focus on both people and place. This paper reflects on the characteristics of ‘left-behind’ places, traditional policy approaches to stimulating economic growth, and suggests alternative approaches, led in part by communities.

In it we suggest:  

• Conventional forms of local growth policy that address ‘hard’ infrastructure provision, innovation, and business support have limited purchase in ‘left-behind’ places. 
• Such places often lack the ingredients (innovation capacity, high skills etc) for a traditional growth-orientated strategy, typically measured by increase in GDP or GVA, nor are they likely to develop them except over the very long-term. 
• Looking ‘beyond GDP’, requires a shift of emphasis from a “production-oriented” measurement system to one focused of the well-being of current and future generations. 
• ‘Left-behind’ places characteristically display a strong sense of belonging, existing alongside severe socio-economic disadvantages, suggesting a refocusing on social infrastructures could have profound economic impact. 
• More focus should be placed on the value of social infrastructure in supporting local growth potential, and this should be a priority for investment. 

You can access the full report here:
UCL_PAC_local-economic-growth-.pdf