Guidance published on new economic assessment duty
The government has published draft guidance on how local authorities should conduct “economic healthchecks” for their area ahead of the new duty that will come into force in April.
The aim of Local Economic Assessments is for county and unitary councils to work out what needs to be done to get their areas on the road to economic recovery. To complete the assessment, councils will be expected to gather evidence under three key themes:
- Business and enterprise: this will include identifying what sectors make up the local economy and their strengths, gauging levels and trends in business start ups and closures, and growth of small and medium-sized enterprises and self employment;
- People and Communities: this will include assessing employment and unemployment rates, looking at levels of entrenched worklessness, and assessing local skills levels;
- Greener economic growth: this will cover the sustainability of the economy by relating economic activity levels and environmental indicators and limits, and examining transport and infrastructure improvement.
The Department for Communities and Local Government said the assessment of competitiveness and productivity in an area would help councils “plug local skills gaps and find business trends to identify the barriers that stop certain groups from working”.
Local Government Minister Rosie Winterton added: “As local leaders councils should be in the driving seat for creating economic growth. I want to see councils finding innovative ways to attract business investment, plug skills gaps, nurture enterprise and innovation and help the long-term jobless. Before they can set out where they want to get to, councils first need to understand where they are now.
“This isn’t simply a data gathering exercise; it’s the starting point for economic recovery so councils can size up the challenges they face and what opportunities they can seize upon.”
The economic assessment duty – introduced under the Local Democracy Economic Development and Construction Act – will come into force in April this year.
