Councils in “driving seat” for local economic recovery

Local authorities are to be given new powers to engineer economic recovery locally, after the Local Democracy, Economic Development and Construction Bill received Royal Assent this month.

The Act will see the development of single regional strategies covering housing, transport and economic development. Responsibility for developing these action plans will fall to regional development agencies and a new breed of local authority leaders’ boards.

Councils will be required to undertake an economic assessment of their area to inform their decision-making. They will also be given powers to create Economic Prosperity Boards, bodies with executive decision-making powers that will operate at a sub-regional level and across council borders.

A further option for local authorities to work together on economic development is created by new Multi Area Agreements (MAAs) with statutory duties, the Act enabling MAAs to be put on a similar statutory footing to Local Area Agreements.

Local Government Minister Rosie Winterton said councils and regional development agencies would be in the “driving seat” for delivering strong local economies and regeneration.

“The Act strengthens the democratic role of councils as local leaders in every region, giving them the power to work with local people and their regional partners to increase prosperity and tackle social deprivation and inequality,” she said.

The legislation also establishes a new duty on local authorities to promote local democracy and ensure greater understanding in the community about how they and other public bodies work.