Economic Development: the heart of Levelling up
Zach Wilcox is an economic development and local government expert, working alongside central government, local government and the private and voluntary sectors to deliver an integrated approach to economic development and regeneration. He is the current COO of the Towns Fund Delivery Partner and was previously Head of Towns and Services.
Economic development is at the heart of Levelling Up. But we must not confuse it with economic growth. Economic growth – more jobs, higher productivity, and greater prosperity for our communities – is a worthy goal, but it only means that your outputs are increasing. Economic development is different; it means that your place’s capability and capacity to improve economic outcomes in the long term is improving. It also means your place is more resilient to economic or environmental shocks and the social challenges that we face in our communities.
Central to Levelling Up is a recognition that we cannot keep making decisions about our Towns and communities based solely on economic and financial return. More resilient places also focus on social and environmental value as well as investing in local institutions and leadership. For example, the Levelling Up White Paper and new Green Book guidance reinforce that a benefit-cost ratio should not carry all the weight in decision making. Rather, the strategic case should carry additional weight in making the argument for investment.
The Towns Fund is an excellent example of economic development and Levelling Up in action. The programme is investing in 101 Towns which have historically had underinvestment and face a broad range of economic and social challenges.
As the Towns Fund Delivery Partner, we have used a “Total Towns” framework to support Towns. This approach has underpinned our advice to Towns at the earliest stages of their visions and Town Investment Plans, through to developing the case for projects and planning for delivery. The Total Towns Outcomes Framework (TTOF) embeds this wider view of economic development into how you understand your local economy in a wider context and how you deliver change.
Through the lens of economic development, the TTOF brings together all the aspects of your place, including:
The external “macro” changes that affect all our Towns, such as digital innovation and climate change
The local factors such as connectivity, pride of place and skills that contribute to the economy, communities, and the environment
The local institutions that drive forward positive change in your Town, influencing how decisions are made, who is engaged in conversations about the future, and how you pay for your investments.
Using this Total Towns approach, the 101 Towns in the programme have created new visions for their places and developed projects that invest in the principles of the Levelling Up agenda around creating new and sustained opportunities for places across the country.
So, what next? Ultimately, the Total Towns approach to economic development boils down to people. Levelling up will only be achieved if places continue to engage a broad range of leaders and stakeholders. Town Deal Boards should continue to play a prominent role as Towns move into a concerted delivery phase. They bring visible change and leadership by invigorating public, private and voluntary sectors around a positive agenda for their communities. With this leadership and the broader view of economic development around economic, social and environmental place-based outcomes, Towns can continue to deliver long-lasting change.