The powers that local authorities have in relation to economic growth vary widely by tier. The directly-elected Metro Mayors are responsible for setting out a strategy for growing the city region economy and will have certain powers over issues such as housing, transport and skills as part of their devolution deals.
The policy landscape relating to local economic growth is expected to change after the publication in February 2022 of the government’s Levelling Up White Paper. In England, the White Paper promises a new framework which will deepen local devolution in England, with three different governance levels with different powers over economic growth and skills. The top two tiers – combined authorities/counties with or without a Directly Elected Mayor – will eventually incorporate the functions currently undertaken by Local Enterprise Partnerships, and will also plan and deliver UK Shared Prosperity Fund projects. Other tiers won’t have these powers.
Skills
Skills policy is also evolving; the Skills for Jobs White Paper published in January 2021 proposes significant changes to the funding of further education and there will be a new Lifetime Skills Guarantee. To develop technical skills, employer-led local skills improvement plans are being piloted. These are expected to be rolled out to all areas in England, with combined authorities and counties with devolution deals providing input. These higher tier authorities will also control adult education functions and the core Adult Education Budget.
Existing legislation
Local Democracy Economic Development and Construction Act 2009 and Apprenticeships Skills Children and Learning Act 2009.
Education and Skills Act 2008
As part of this Act, local authorities have duties to secure education/training provision for all young people over compulsory school age and under 19, and those aged 19-25 for whom an Education, Health and Care (EHC) plan is maintained.
Procurement
Public Services (Social Value Act) 2012
The SVA requires local authorities to consider, at the pre-procurement stage, how procurement could improve the social, economic and environmental well-being of the area.
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4.3 Business case
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4.5 Examples
