Local growth needs consistency, not constant reinvention

There is a renewed determination to drive economic growth across the country and give local leaders a greater role in making it happen. That is welcome but it would be a mistake to assume that another funding programme or new delivery structure will, on its own, change the fortunes of a place.Local growth is a long-term game. It requires sustained effort, often over decades, and one of the lessons I have taken from successful regeneration is that momentum becomes much harder to build when the approach is repeatedly changed.That is particularly relevant given the position local government finds itself in today. Councils have lost considerable capacity over a long period and while there is an ambition to rebuild it that will take time. Local authorities still have a fundamental place-shaping role, but many cannot be expected to assemble all the skills required to deliver complex regeneration themselves.Choosing the right partners has therefore always mattered. Technical ability is important, but so is the ability to work together for the long term and adapt when circumstances inevitably change.For too long, the approach to regeneration has been episodic. Central government provides funding, an intervention is assembled around it and there is pressure to spend the money within a particular timetable. The focus then moves elsewhere and several years later another initiative may begin under a different set of rules.Individual interventions can achieve a great deal, but changing the economic prospects of a town or city requires something more sustained.Salford has demonstrated that well. The transformation visible today cannot be attributed to one project, or indeed solely to the English Cities Fund (ECF), the placemaking partnership I chair. Earlier development corporations played an important part, and ECF's partnership with Salford City Council has continued that work over more than two decades. Different phases have come forward under very different market conditions, but there has been a consistency of purpose throughout.Development corporations can provide that continuity, and, in some places they will be the right answer. They are not the only answer. ECF was created to provide another route, bringing together public sector leadership, long-term investment and delivery expertise within a partnership that can stay with a place over time. Whatever the model, there needs to be time to establish the relationship, agree what the place needs and put arrangements in place that can survive changes in the market.Looking back, my concern with constantly changing structures has always been that each reset risks losing some of the momentum that has already been built, and it also affects confidence.The incentives facing local leaders are another important part of this discussion. When I spent two years reviewing local government finance for Gordon Brown, I argued for greater retention of the additional taxation generated by local economic activity. I was clear that reform could not happen all at once, but we could have started the process and built on it over time. Had we done so, we would be much further down the road today.Residents remember ambitious plans that are announced but never delivered. If that happens repeatedly then trust is quickly lost. The same applies to investors who need confidence that a place has a clear direction and that commitments will survive political and organisational change.Bradford offers another example. After a period of false starts, strong local leadership has helped rebuild momentum and create a clearer route from ambition into delivery. Consistency is not simply about having the same people or structures in place. It is about demonstrating that plans can become reality and giving residents and investors confidence that progress will continue.The incentives facing local leaders are another important part of this discussion. When I spent two years reviewing local government finance for Gordon Brown, I argued for greater retention of the additional taxation generated by local economic activity. I was clear that reform could not happen all at once, but we could have started the process and built on it over time. Had we done so, we would be much further down the road today.At the heart of that work was a concern about a culture of councils having to repeatedly bid for the next pot of government funding. This was not a criticism of councils seeking government support. The system itself encouraged local leaders to put enormous effort into securing the next grant rather than rewarding them sufficiently when they strengthened their local economy.Central government funding will continue to be necessary, especially because the ability to generate additional local revenue varies enormously across the country, and greater local responsibility cannot mean assuming every place begins with the same resources or opportunities.Nor is local growth a replacement for a serious national economic strategy. Housing constraints can hold an economy back, as can poor transport or the inability of people to reach jobs that already exist. Some of those barriers require national intervention, but they are often best identified by people who understand the local economy and how it functions.There is no single solution here. Different places will need different forms of support, and some will take longer than others to build a stronger economic base. The ambition for growth across the country should not mean pretending otherwise.What government can do is give places a better chance to build momentum and benefit from the growth they help create. It should support strong local leadership, encourage partnerships capable of staying the course and resist the temptation to reinvent the system before it has had time to work.Regeneration has always required patience and that is the lesson I will take with me from ECF. If we are serious about local growth, our approach to it needs to reflect that.Sir Michael Lyons has chaired ECF since it was established and retires from the role at the end of January 2027. ECF is a place-making partnership bringing together Homes England's National Housing Bank, L&G and Muse

Title

ECONOMIC GROWTH

Local growth needs consistency, not constant reinvention

By Sir Michael Lyons | 30 October 2026

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