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Government outlines new economic duty regime

Government outlines new economic duty regime 

Newly proposed requirements for Local Economic Assessments (LEAs) should form a key part of the evidence base for the preparation of Local Development Frameworks, stresses the Government today.

Surrounding the Local Democracy, Economic Development and Construction Bill, which is due to come into force next April, the Communities and Local Government (CLG) has published the draft guidance to ensure local authorities and partners gain early insight into the thinking about the planned duty.

CLG, taking on board work already carried out by the Improvement and Development Agency (IDeA) and the Planning Advisory Service, proposes that LEAs should offer the following:

• The provision of a clear understanding of the economic condition of the area and how these conditions affect residents and businesses
• An indication of the comparative strengths and weaknesses of the local economy, while also highlighting the nature and form of economic challenges and opportunities locally
• The identification of local economic geography, including how and where economic links form between the area being assessed, and the wider economy
• The clear setting out of local constraints to economic growth and employment, coupled with the risks to being able to deliver sustainable economic growth

CLG is requesting that local authorities adopt as consistent an approach as possible to assessments, in order to facilitate both comparisons and connections to support regional and sub-regional strategies.

CLG highlighted that councils should assess the extent to which local housing provision and infrastructure support the economic stability of the area, and ascertain whether housing is sufficient and of the right size and affordability "to support economic growth and economic inclusion".

This would also require councils to have an appropriate understanding of how land is to be used for economic development specific to their geographic location.

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