Local economic development in a time of austerity: A consultant’s perspective

Abstract

This paper argues that local economic development should be understood in the context of wider economic trends. It suggests that local economic development should facilitate economic restructuring that promotes economic growth by supporting innovation and technological development. While acknowledging new approaches to economic development that emphasise the use of legal and regulatory frameworks and incentives to exploit the insights of behavioural economics, it concurs with the 2012 Heseltine Review that significant levels of funding are essential if local economic development is to make a measurable difference to the economy. The paper concludes by noting that, if central government is serious in its intention to devolve large budgets to local areas, it needs to start making preparations for the switch well before 2015, because much of the experience and expertise required to lead such work in local areas has been lost in recent years.