Attracting investment for inclusive growth: A guide for councils

Local government is undergoing a period of unprecedented structural and political change. The English Devolution and Community Empowerment Bill, wide-ranging Local Government Reorganisation (LGR), and the rapid expansion of Mayoral Combined Authorities (MCAs) are reshaping governance at pace. While some areas are gaining new powers and resources, others face significant uncertainty about future structures, leadership and responsibilities. 

At the same time, with growth established as a defining national mission, there is renewed emphasis on driving prosperity from the grassroots – ensuring that every place can contribute to, and benefit from, economic success. Yet, to realise this ambition, the current operating context demands a clearer, shared understanding of the role of local government in delivering inclusive growth, alongside the external forces shaping its capacity to act. 

In December 2025, the Local Government Association (LGA) published 'A force for growth', which found that councils’ ability to drive inclusive growth is shaped by a set of interdependent, systemic factors that extend beyond individual projects or services – namely devolution, funding and flexibility, political leadership, and connectivity across government tiers. Together, these factors determine councils’ capacity to plan, prioritise, and act, establishing the broader conditions in which inclusive growth can be realised.

Nevertheless, the report identified four core roles through which councils can underpin inclusive growth: as growth facilitators, service providers, orchestrators, and anchors in their place. Together, these roles reinforce the centrality of local government in shaping communities, unlocking local potential, and delivering on the national growth mission.

A central theme of the report is the influence of funding on councils’ ability to deliver against this agenda. After 15 years of sustained fiscal pressure, the conclusion of UK Shared Prosperity Fund (UKSPF) funding in March 2026 further constrains access to grant-based capital, increasing the importance of long-term, sustainable investment models that move beyond short funding cycles. In some areas, the end of UKSPF has created a particular gap, leaving councils without dedicated resource to support investment activity – driving significant frustration among local leaders and officers. While the report calls for more stable, multi-year funding settlements with greater fiscal flexibility, it also underscores the growing importance of investment – particularly where public funding alone is insufficient.

This shift coincides with a strengthened national focus on private investment as a driver of growth. Policy frameworks have made clear that mobilising private capital is central to the UK’s economic strategy: the Modern Industrial Strategy emphasises the role of public–private partnerships in unlocking investment, while the Infrastructure Strategy and the establishment of National Infrastructure and Service Transformation Authority (NISTA) aim to address long-standing barriers to deployment. A strengthened Office for Investment, alongside institutions such as the National Wealth Fund, British Business Bank, and the emerging National Housing Bank, reflects a more coordinated approach to directing private capital into priority sectors and places.

Many councils are still very grant-focused, but senior officers increasingly know they can’t rely on grants forever. They need to shift toward investment models that deliver returns. 

An institutional investor

Importantly, institutional investors, pension funds, venture capitalists, developers, and businesses have a strong appetite to invest in local projects, whether that be a new housing site or expanding their own company’s footprint. National initiatives such as the Mansion House Compact and Accord, alongside more recent announcements like Sterling 20, demonstrate clear intent from major investors to increase allocations to UK places. However, despite this appetite, many investors do not perceive councils as 'investment-ready'. Misaligned priorities, differing expectations and a limited understanding of investment structures or needs have made it difficult to transform shared ambition into delivery. 

Recognising these challenges, 'A force for growth' recommended that the LGA build and share best practice on attracting and leveraging investment to deliver equitable and sustainable outcomes. To unlock inclusive growth at scale, councils need practical guidance on how investors assess opportunities, and how to structure propositions that align public value with private capital. Bridging this gap in understanding is essential to connecting national ambition with investor appetite and effective local delivery.

This report, commissioned by the LGA and produced by Henham Strategy, takes forward that recommendation by providing practical guidance for local councils on the steps they can take to attract investment and fully realise their role in delivering inclusive growth. It sets out the key barriers councils face in attracting investment, alongside the challenges identified by investors themselves; explains the different types of investors and their priorities; and introduces a framework to help councils assess their current position and progress towards greater investment readiness.

This report combines desk-based analysis with primary qualitative research. Rather than duplicating existing studies, it builds on and synthesises already published research. The process began with a structured review of relevant literature and evidence, ensuring a thorough understanding of the current knowledge base without repetition. This was followed by a series of interviews with a range of stakeholders, including institutional investors, developers, business representatives, and council officers from varied local contexts. These interviewees were carefully selected to provide broad perspectives and real-world insights, reflecting different sectoral and geographic contexts. Findings from the desk research and stakeholder engagement were then systematically analysed and integrated. Through this comprehensive approach, a coherent evaluation framework was developed to capture the key themes and findings. This framework, while being informed by council case studies, is further illustrated by the case studies, demonstrating how the report’s principles translate into practice.

'A force for growth' defines inclusive growth as ensuring that people and places across the country can both contribute to, and benefit from, economic prosperity. It positions inclusive growth as central to addressing the UK’s productivity challenge, recognising that growth which excludes people, communities or places ultimately limits economic potential.

Inclusive growth is not a secondary objective or a ‘nice to have’. Without addressing the structural barriers that limit participation in local economies - whether for residents, businesses, or places – productivity-led growth alone will not deliver sustained or widely shared outcomes. Action at the local level is therefore critical in shaping how that growth is realised and who benefits from it.

From an investment perspective, inclusive growth has two distinct but interrelated dimensions: access to capital, and the local distribution of its benefits.

Many councils and local economies have historically struggled to attract capital investment, often due to market failure, lack of scale, perceived risk, or limited connectivity to financial markets. These structural factors can result in investment being concentrated in a narrow set of places, leaving others locked out of growth opportunities. Crucially, however, even where capital is available, investment does not inherently deliver inclusive outcomes.

'A force for growth' underscores the role of councils in shaping how growth is realised, through their functions as growth facilitators, service providers, orchestrators, and anchors in place. Through tools such as planning policy, skills provision, infrastructure investment, and partnership working, councils play a critical role in determining whether investment translates into quality jobs, progression pathways, improved services, and long-term benefits for existing communities.

Some industry commentary refers to this as 'inclusive investment': an approach that seeks to reshape how capital flows so that opportunities are accessible to a broader range of places, businesses, and people – particularly those historically underserved by traditional finance. In this context, inclusive growth operates at two levels: enabling councils to attract and deploy investment more effectively, while ensuring that residents – especially those who have not previously benefited from economic development – share in the outcomes.

Delivering inclusive growth in practice therefore requires councils to actively shape and manage investment, rather than simply attract it. As 'A force for growth' sets out, this involves strengthening local capability, aligning investment with local priorities, and using public intervention strategically to address market failure. Building this capacity is fundamental if private investment is to deliver inclusive, sustainable outcomes – rather than reinforce existing inequalities.

Investment is a critical lever for inclusive growth, yet councils face significant barriers in attracting and leveraging different forms of capital to deliver inclusive outcomes. Existing literature and stakeholder insights consistently highlight both the nature of these challenges and the ways in which they vary across place, scale, and local context.

This report is therefore written primarily from an investor perspective, placing greater emphasis on the external factors that shape investment decisions and behaviours. However, it also recognises the wider operating constraints councils face, which can limit their ability to influence investment outcomes – even where there is strong local ambition.

1. Severe resource and capacity constraints. Council budgets continue to be challenging. Limited capacity restricts councils’ ability to identify and prepare viable projects for investment, for example, by assembling land or co‑funding early site works to make development sites 'shovel‑ready'. 
2. Statutory service pressures and competing priorities. Council leaders must prioritise mandatory services like social care, education, and waste management, essential services where associated costs have risen sharply in recent years. These statutory obligations dominate budgets and senior attention, often at the expense of discretionary economic development activities.
3. Misalignment between public and private sector. Stakeholders across both sectors often highlight a misalignment between investment objectives and public sector ambitions. Councils must balance social outcomes, environmental goals, and financial stewardship, while private investors prioritise competitive returns within defined risk parameters. This is further compounded by misaligned timeframes and policy frameworks – particularly where national planning requirements or constraints (such as limited employment land allocations) do not align with the pace or needs of private investment decisions.
4. Inconsistency across processes and policies. As set out in previous LGA publications, investors look for political stability, strong leadership, and clear long-term visions; however, electoral cycles – and shifting priorities – are beyond officers’ control. Uncertainty in planning processes is a further barrier: where approvals are slow or unpredictable, capital is likely to flow to regions or countries with faster, clearer systems. This is compounded by the reality that planning operates within competing local priorities and ongoing resource constraints.
5. Changing national priorities. Councils operate within shifting national policies and funding regimes, where changes to programmes or priorities can undermine the certainty required for long-term investment. This is further complicated by the growing focus on MCAs, which can leave non-MCA areas outside key strategic conversations. At the same time, recent changes to national institutions – such as the Office for Investment and the National Wealth Fund – have required new relationships to be built between local and central government.
6. Economic headwinds and investor risk aversion. High inflation, rising interest rates, and broader economic uncertainty have dampened investor appetite while placing additional pressure on council finances. In this context, investors tend to become more risk-averse, while councils have reduced capacity to co-invest or underwrite risk. As a result, more marginal or innovative projects – often those with the greatest potential local impact – struggle to secure capital.
7. Competition in a global market. Councils face intense competition for investment, both domestically and internationally. Investors can deploy capital globally, and the UK risks losing out where processes are perceived as slow or reactive. While local areas with similar sector propositions compete for a shared pool of capital, stakeholders emphasise that the most significant competition often comes from more attractive opportunities overseas.

Taken together, these challenges constrain councils’ ability to attract and deploy the private capital needed for inclusive and sustainable development. Each barrier – from internal capacity constraints to wider economic pressures – contributes to a cycle of underinvestment in the places that need growth most. This has real consequences: without addressing these constraints, councils will struggle to deliver these affordable homes, quality jobs, and resilient infrastructure that underpin inclusive growth.

While these represent some of the most significant and widely recognised barriers, their impact is not uniform. How they manifest varies by investor type, for example, planning constraints are often more acute for developers, whereas access to finance or market conditions may be more critical for Small and medium-sized enterprises (SMEs) seeking to expand.

As stakeholders emphasised, the private sector does not operate on a grant basis and is not driven by public sector business cases. For instance, while investors may recognise wider ecosystem benefits, their primary imperative is to secure a return on investment. However, how this plays out varies by investor type. For example, a pension fund investing in housing may assess place-based impacts differently from a local business seeking to expand.

The biggest misunderstanding is that we only invest in affluent places. In reality, we look for places with a clear ambition and the ability to deliver. 

An institutional investor.

Not all places can be good at everything. Regions need to decide what they want to be known for and focus on their genuine strengths. 

A business representative.

As a result, to create a practical guide for local councils’, to attract and leverage a diverse portfolio of investment, we first need to understand the different types of investment that can support the delivery of inclusive growth. Table one sets out the key investment categories, the asset types they encompass, and the investors active within them, with the aim of supporting local councils to engage with a diverse range of investors. 

Table one: Breakdown of investment category by asset and investor

It is important to recognise that not all forms of investment are suitable for every place. With inclusive growth outcomes in mind, councils are best placed to determine which types of investment align with their local economies, based on feasibility, local need, and financial viability. By understanding investor priorities, councils can take a more strategic approach to engagement – shifting from a focus on individual projects to positioning the place as a coherent investment opportunity. Table two draws on existing literature and investor interviews to set out the implications of different investor groups for councils.

Table two: Breakdown by investor grouping and implication for councils

Given the complexity of investment portfolios, a one-size-fits-all approach to the role of the local authority is not feasible. However, investors are consistent in what they need to see to consider an opportunity viable, with clear alignment across investor expectations that councils can prioritise to streamline their approach to attracting and leveraging investment. 

When councils provide long-term certainty – say, a clear high street or industrial strategy – it encourages businesses to invest. 

A business representative.

Planning is the most significant area where councils impact us. Timely planning decisions are crucial – if approvals don’t come in time to fit our business cycles, projects can be jeopardised and even a site’s long-term viability is at risk.

A major employer.

Table three highlights these areas of alignment, drawing out where there is broad consensus across investor groups.

Table three: Alignment across investor groupings

Councils can use their position to address these challenges, while taking a strategic approach to identifying the forms of investment best suited to support their inclusive growth objectives.

As outlined above, councils can play different roles in attracting investment, depending on the type of investment and investor they are engaging with. Table four sets out these roles, alongside case studies illustrating how councils have successfully deployed them in practice. In determining how to proceed, councils should be guided by both their strengths and their needs. While not every type of investment will be suitable for every place, all councils can take steps to strengthen their offer and secure greater levels of investment.

Table four: Role of the council in attracting investment

In a challenging operating environment, councils cannot pull every lever simultaneously to attract investment more effectively. This report has set out how councils can, over time, respond to investor concerns and strengthen their investment offer. It also highlights the actions councils can begin to take in both the short and long term to better position themselves for investment.

Immediate impact: Recommendations for councils

Before addressing more complex issues such as enabling infrastructure, there are several quick wins that councils can deliver to begin their journey towards investment readiness.

1. Know your businesses. The most effective investment often comes from firms already in the area. Building strong relationships with local businesses –  supported by clear points of contact –  can unlock expansion opportunities, drive reinvestment, and strengthen local supply chains.
2. Understand what “shovel ready” means. Investors prioritise credible returns and risk mitigation over detailed public-sector business cases. Councils can improve investment readiness by preparing sites early, coordinating planning and infrastructure, and addressing viability gaps.
3. Embed economic development. Economic development capability is often vulnerable to competing priorities. Embedding it within long-term strategy – and demonstrating its value – helps protect capacity and sustain investment activity over time.
4. Align planning and economic development. Close coordination between planning and economic development teams can accelerate delivery and improve investor confidence, particularly where decisions can be made quickly and coherently.
5. Collaborate beyond boundaries. Investment operates at a functional economic geography level. Working with neighbouring areas helps retain opportunities within the wider region and strengthens collective propositions.

Longer term change: Recommendations for councils

Achieving investment readiness requires a longer‑term process, and councils will need to undertake more challenging actions over time to get there.

1. Establish a single 'front door'. A clear, coordinated entry point simplifies engagement, reduces fragmentation, and signals accountability – giving investors’ confidence that the council can act as an effective partner.
2. Invest in enabling infrastructure and place-making. Early investment in transport, utilities, and site development can unlock private capital at scale, transforming sites into viable and attractive investment opportunities.
3. Use innovative delivery models. Structured partnerships - such as joint ventures or special purpose vehicles – allow councils to share risk and reward, bring in private partners earlier, and unlock more complex or capital-intensive schemes.
4. Track outcomes over time. Embedding inclusive growth requires ongoing evaluation of economic, social, and environmental outcomes, enabling councils to demonstrate impact and refine their approach over time.

These actions align with the four roles set out in 'A force for growth': as growth facilitators, councils reduce barriers and enable investment; as service providers, they align investment with local and statutory needs; as orchestrators, they convene partners across systems and geographies; and as anchors, they use their own powers and resources to address market failures and unlock opportunities.

Recommendations for investors

This report has focused on councils through an investor lens. However, investors also have a role to play in supporting councils to succeed. To help councils become more investor‑ready and better positioned to secure investment, investors should reflect on how they engage with local authorities and where they can adapt their approaches to be more supportive and collaborative.

1. Engage early to shape pipelines. Rather than waiting for fully formed opportunities, investors should work with councils to identify and develop investable pipelines, clearly signalling requirements around scale, returns, and risk. Early engagement helps align projects with both commercial viability and local priorities.
2. Support efforts to de-risk investment. Many councils are willing to co-invest, contribute land or infrastructure, or explore guarantee structures to improve viability. Where councils demonstrate commitment, investors should actively engage with blended finance models rather than relying on councils to carry early-stage risk alone.
3. Align with local objectives. Investors can help bridge the public–private “language gap” by being transparent about investment criteria while taking account of local priorities. Understanding councils’ ambitions around social outcomes, environmental goals, and community benefit will enable more effective and mutually beneficial investment propositions.

Recommendations for central government

Finally, 'A Force for Growth' sets out a series of recommendations for central government to support inclusive growth and investment attraction. A central priority is the provision of sustained, long-term revenue funding – alongside capital settlements – to enable councils to address enduring capability gaps. This would support the development of in-house expertise to broker, structure, and manage investment effectively over the long term.

Conclusion

Councils sit at the heart of local economies, giving them a strong understanding of what investment can deliver on the ground. However, not all are equally prepared to attract and leverage that investment. While the recommendations and evidence in this report can help strengthen investment readiness, councils cannot do this in isolation.

Investors and central government also have a critical role to play. Progress ultimately depends on these actors meeting councils halfway – whether by making investment requirements more transparent or by creating the conditions in which investment can thrive.

The case studies used in this report were simplified for readability. The full case studies – including greater detail on interventions and lessons for other councils – can be found below. 

Case study 1: Wiltshire Council

Context and investment type
Wiltshire has sector strengths in defence, advanced manufacturing, and research and development. The council’s investment focus has been on supporting existing businesses to expand and attracting new facilities in priority sectors. These efforts aim to strengthen the local economy, retain key employers, and deliver long-term benefits for communities.

Council’s role
Wiltshire Council has taken a proactive role in enabling investment. Its 'Wiltshire 100 and Inward Investment' programmes provide key account management for around 100 strategically important businesses. Dedicated officers act as a single point of contact, coordinating across departments to support firms’ growth plans, building trusting relationships and monitoring for issues to ensure delivery proceeds as planned. This approach allows the council to anticipate future needs and respond quickly. For example, when Siemens was considering requirements for a new £100 million rail factory, Wiltshire engaged early to advise on sites in Chippenham. The council offered planning support and infrastructure coordination, helping secure the investment and retain high-skilled jobs. Similarly, the council supported Wadworth’s Brewery in relocating to a modern facility, resolving infrastructure challenges to keep the business in the area. 

Embedding inclusive growth
The council prioritises investments that create higher-skilled, better-paid jobs. This approach addresses Wiltshire’s relatively low-wage economy and aims to provide residents with access to sustainable careers. Investment decisions are guided by long-term outcomes, including career pathways for young people and opportunities for ex-military personnel. The council works with local partners to align skills provision with employer needs, ensuring that growth benefits are widely shared.

Investor‑ready proposition
Wiltshire has positioned itself as a reliable and business-friendly location. The Wiltshire 100 and Inward Investment programmes simplify engagement and give investors a clear route into the council. The council seeks to resolve planning and infrastructure issues efficiently, reducing uncertainty for investors. It also offers a clear proposition based on its strengths: available land, a skilled workforce (including military leavers), and strong regional partnerships. The council is transparent about what it can offer and refers businesses to neighbouring areas when appropriate. Long-term relationships and stable governance underpin investor confidence, with senior leadership consistently supporting economic development priorities.

Outcomes
Since 2023, the council has facilitated over £700 million in private investment, including the Siemens factory and multiple business expansions. More than 1,000 new jobs have been created, many in skilled sectors such as manufacturing and Research and Development (R&D). The council has also helped retain around 1,600 jobs by supporting local firms to grow in place. In 2025 alone, secured investments are expected to generate approximately £16 million in additional gross value added. These investments have also supported local supply chains, training initiatives, and infrastructure improvements.

Lessons for other councils

• Build long-term relationships with key employers to anticipate and support growth.
• Use planning and infrastructure coordination to reduce delivery risk.
• Focus on quality jobs and long-term community benefit.
• Be clear and realistic about what the area can offer.
• Maintain stable leadership and cross-party support for economic development.
• Leverage regional partnerships to meet investor needs.

Case study 2: Stevenage Borough Council

Context and investment type 
Stevenage Borough Council supported the expansion of Autolus Therapeutics, a biotechnology company developing cell and gene therapies for cancer. Autolus, a spin-out from University College London, had grown within the Stevenage Bioscience Catalyst and Cell and Gene Therapy Catapult. As the company moved from research to commercial production, it required a new manufacturing and headquarters facility. The council facilitated the development of a £65 million advanced manufacturing site in Stevenage Town Centre, delivered by UBS Asset Management and Reef Group. The investment supports the UK’s life sciences industrial strategy and contributes to the regeneration of the town centre. 

Council’s role 
The council played a central role in enabling the investment. It worked with Autolus to consider possible sites, and following that process agreed the sale of a council-owned car park site to the developer to accommodate the facility and worked closely with partners including the Cell and Gene Therapy Catapult and North Hertfordshire College. The project moved swiftly through the planning process, enabling practical completion within two years. Senior officers and elected members provided consistent leadership, coordinating across departments to resolve issues and maintain delivery momentum. The council also helped secure Towns Fund support for infrastructure improvements that indirectly supported the site. 

Embedding inclusive growth 
From the outset, the council focused on ensuring the investment delivered inclusive benefits. Approximately 400 jobs were created, spanning a range of roles from entry-level operations to scientific and managerial positions. The council partnered with North Hertfordshire College to develop targeted apprenticeships and training programmes aligned with Autolus’s needs. This included lab technician and biomanufacturing operator roles, with residents supported into employment through tailored pathways. The council also encouraged Autolus to engage with local schools and community events to raise awareness of careers in life sciences. 

Investor-ready proposition 
Stevenage’s established life sciences cluster, including GlaxoSmithKline's (GSK) R&D centre and the Cell and Gene Therapy Catapult, provided a strong foundation for investment. The council’s proactive approach, including land assembly, planning support, and partnership working, reduced delivery risk. The location offered connectivity to London and Cambridge, access to a broad labour market, and lower operational costs. The council’s regeneration plans, including new housing and amenities, further enhanced the area’s attractiveness. The public-private delivery model, with shared risk and aligned interests, provided confidence to investors and supported the successful delivery of the project. 

Outcomes
The Autolus facility has created around 400 jobs and contributed to the growth of Stevenage’s life sciences sector. The presence of the facility in the town centre has increased footfall and supported local businesses. The partnership with North Hertfordshire College has enabled local residents to access new career opportunities, with multiple cohorts of apprentices trained for roles at Autolus. The investment has also enhanced Stevenage’s profile as a location for advanced manufacturing, attracting interest from other firms in the sector. The council is monitoring outcomes including job creation, local employment, and business rates growth. 

Lessons for other councils

• Build on existing sector strengths and clusters to attract aligned investment.
• Use planning and land assets strategically to enable development.
• Engage early with investors and partners to understand and meet delivery requirements.
• Embed inclusive growth from the outset through skills partnerships and local recruitment.
• Maintain a long-term vision and consistent leadership to support delivery.
• Use public-private models to share risk and unlock private capital.

Case study 3: Hammersmith & Fulham London Borough Council

Context and investment type 

The London Borough of Hammersmith & Fulham has, in the past decade, transformed into a global economic hotspot, with significant growth in STEM31 (Science, Technology, Engineering, Maths, Medicine and Media) industries. Development of the White City Innovation District has been a key part of that. Home to Imperial College London’s Deep Tech Campus, the borough has attracted over £6 billion in private investment since 2017. Investment has focused on sectors such as life sciences, artificial intelligence, green technology, and creative industries. The council’s industrial strategy – Upstream London – was developed to support local economic development, job creation, and regeneration, and aligns with national objectives to increase research and development activity and promote inclusive growth. 

Council’s role 

The council’s focus on ‘entrepreneurial municipal government’ has seen it play a facilitative role in the development of the White City Innovation District, using its convening powers. Its partnership with Imperial College London as the founding anchor institution underpinned the industrial strategy, Upstream London, launched in 2017, followed by a second phase in late 2024. This partnership also established Upstream London Nexus, a collaborative initiative to support business engagement and innovation. The council used planning policy to secure affordable workspace (requiring 20 per cent provision in major developments) and supported land assembly and infrastructure improvements to enable development. It also brokered relationships between developers and prospective tenants, including L’Oréal and Novartis, and helped create Scale Space, a joint venture between Imperial and Blenheim Chalcot. Economic development and planning functions were aligned under senior leadership, and many initiatives were funded through Section 106 contributions. 

Embedding inclusive growth 

The council has implemented several measures to promote inclusive growth. The Pathway Bond programme links businesses with local residents through apprenticeships, work experience, and careers engagement. Over 100 businesses have participated to date. The WEST Youth Zone, part of the £150 million EdCity development, provides young people with access to mentoring, skills development, and exposure to science, technology, engineering, mathematics, medicine and media (STEM3) careers. The council has also supported the delivery of affordable housing, including employment-linked tenures, to retain key workers and support recruitment in growth sectors. Planning obligations have been used to secure social value, including affordable workspace for small and medium-sized enterprises and social enterprises. 

Investor-ready proposition 

The White City Innovation District has attracted investment through a combination of strategic planning, institutional partnerships, and infrastructure support. The council’s partnership with Imperial College London provided a clear framework for development and delivery. Planning policies were adapted to support research and development uses, and land assembly and infrastructure improvements reduced development risk. The council engaged directly with investors and developers, offering flexibility in planning and delivery models. The area now hosts over 800 businesses, including global firms and high-growth start-ups including Publicis Groupe, Eutelsat, Autolus, The White Company, ITV and PVH Corp (owners of Tommy Hilfiger, Calvin Klein and others). It is supported by business networks and events coordinated through Upstream London Nexus. 

Outcomes 

Since 2017, the borough area has attracted approximately £6 billion in investment – much of it to the White City Innovation District - and supported the creation of over 17,000 jobs in high-value sectors. The innovation district includes more than 800 businesses, with growth in life sciences, artificial intelligence, and creative industries. The council has secured over 200,000 square feet of affordable workspace and supported improvements to public realm and community facilities. Inclusive growth outcomes include participation in the Pathway Bond programme and engagement with the WEST Youth Zone, which had over 2,000 members within six months of opening. The council is developing metrics to track employment outcomes and business growth. 

Lessons for other councils 

• Anchor partnerships with academic institutions and businesses can support regeneration and investment. 
• Planning powers can be used to secure inclusive outcomes and support sector-specific development. 
• Inclusive growth requires targeted interventions, such as career and work experience opportunities, skills programmes and affordable housing. 
• Section 106 contributions can provide sustainable funding for economic development initiatives. 
• A clear strategy, entrepreneurial leadership, and a collaborative approach can support investor confidence. 

Case study 4: North Kesteven District Council

Context and investment type 
North Kesteven is a rural district in Lincolnshire, with a strong focus on supporting both small businesses and major employers. The council has adopted a dual investment strategy: directly supporting SMEs through council-owned business units, and enabling large-scale private investment in sectors such as advanced manufacturing, agri-food, and clean energy. Key projects include Siemens’ turbine servicing facility, Pilgrim’s food processing expansion, and Clean Planet’s waste-to-fuel plant (subject to imminent planning decision). These investments align with local priorities around economic resilience, job creation, and environmental sustainability. 

Council’s role 
The council plays an active role in enabling investment. It owns and manages over 100 small business units, offering flexible leases and curating tenant mixes to support business ecosystems. Occupancy rates consistently exceed 95 per cent. The council maintains a Top 50 Businesses list and assigns relationship managers to build trust and respond quickly to emerging needs. Early engagement with firms like Pilgrim’s has helped shape expansion plans and avoid relocation risks. 

North Kesteven also invests in infrastructure to unlock development. They purchased land allocated for a new business park, and funded road and utility upgrades to address market failure. When Clean Planet sought to build a pyrolysis plant, the council adapted its model – selling the freehold rather than leasing – to secure the investment. Similarly, the council supported a straw-fired biomass plant by facilitating planning and negotiating a community benefits package, including a district heating scheme. 

Internally, the council integrates economic development and planning functions, with senior leadership overseeing both. This ensures planning is used to enable growth, not hinder it. A pragmatic, risk-aware culture allows the council to take calculated risks while maintaining financial discipline. 

Embedding inclusive growth 
Inclusive growth is embedded through a focus on quality jobs, sustainability, and community benefit. The council supports high-value sectors like engineering and green technology, helping residents access skilled employment locally. Its SME support model fosters entrepreneurship and economic diversity. 

Major projects are assessed for social and environmental value. The biomass plant delivers local energy and community funding. Clean Planet’s facility will support circular economy goals. The council also mitigates community impacts – for example, working with developers to adjust traffic routes and site layouts.

Through its housing company, Lafford Homes, the council delivers market and affordable rental homes in areas of need. This ensures that economic growth is matched by housing provision, supporting inclusive outcomes. 

Investor-ready proposition 
North Kesteven’s investor-ready offer is built on: 

• a supportive business environment, with direct access to senior leaders and relationship managers
• site readiness, including council-funded infrastructure to de-risk development 
• flexibility in deal-making, such as adapting land ownership models to meet investor needs
• strategic planning through the Central Lincolnshire joint plan, offering clarity on land use and reducing inter-authority competition 
• a track record of delivery, with consistent leadership and successful partnerships with firms both large and small. 

Outcomes
The council’s approach has delivered strong results. Its business units are nearly fully occupied, generating income and supporting local SMEs. Siemens’ facility has secured high-skilled jobs, while Clean Planet’s plant is expected to create green jobs and process significant volumes of waste plastic, with contracts already secured across the area for waste supply and inward investment of over £100 million. Engagement with Pilgrim’s is supporting a potential expansion that would safeguard and grow employment that will be needed to match the increased output, that will see this site as one of, if not the highest producing chicken supplier in the country. 

Lafford Homes returns over £1 million annually to the council and provides quality housing in key locations. The council is developing metrics to track outcomes, including job creation, business survival, and environmental impact. 

Lessons for other councils 

• Build long-term relationships with local businesses to identify and support investment opportunities early.
• Adopt a business-minded, flexible approach to deal-making and planning.
• Invest in enabling infrastructure to unlock private development.
• Use strategic planning and partnerships to provide clarity and reduce competition.
• Embed inclusive growth by aligning investment with social and environmental goals.
• Maintain a risk-aware but ambitious culture, ensuring financial sustainability while enabling growth.

Case study 5: Lancashire Council

Context and investment type 

Lancashire County Council operates in a diverse economy outside the orbit of major city-regions. The council emphasises economic ambition and fostering growth from within by retaining and expanding existing businesses in the county. Many of Lancashire’s most impactful investments have come from local firms – including long-established, family-owned manufacturers and foreign-owned companies with local operations – choosing to reinvest and grow on home turf. Additionally, the council works to ensure that existing and future potential development sites are genuinely 'oven-ready' for investment, facilitating intervention through strong collaboration with statutory undertakers, partners and key stakeholders. Public interventions are used selectively to overcome structural viability gaps in the market, especially in challenging sectors like commercial office development. 

Council’s role 

A core priority is retaining and growing local employers: Lancashire engages closely with companies already in the county to support their expansion plans, growth potential and to keep them rooted in the area. This includes dedicating resources (with support from Department for Business and Trade funding) to assist foreign-owned firms that operate locally, since many so-called 'inward investments' are in fact reinvestments by businesses that Lancashire has already successfully attracted or grown. Departments responsible for economic development and growth coordinate closely with planning authorities and education providers to offer a holistic support package. At the same time, the council takes a hands-on approach to employment site and business readiness alongside infrastructure development to catalyse new investment. Lancashire maximises its influence in areas like the county’s designated Enterprise Zones and other strategic landholdings where the public sector can control, influence and/or guide development. To bridge viability gaps that the private sector will not bear, Lancashire County Council deploys a flexible toolkit of public interventions, to unlock delivery potential. 

Embedding inclusive growth 

Skills development is a key component of the council’s inclusive growth strategy. Investment projects are linked to workforce development, with efforts to align training, employment readiness, provision to employer needs. Social benefits are embedded and after a deal is signed or a development is announced, the council continues to engage through community outreach, skills training, and inclusion programmes to make sure the benefits reach those who need them with a strong focus upon opportunities for local people and business. For instance, the arrival of a significant government-backed project or major employer is used as a springboard to boost local skills provision in related fields and to connect underrepresented groups to new job opportunities. The council also leverages anchor institutions as catalysts for inclusive regeneration. It supports the transition of traditional industries towards new technologies. Government relocations, such as civil service offices to Blackpool, are used to stimulate local regeneration and employment. 

Investor ready proposition 

Lancashire’s offer is built on being flexible and realistic, and understanding that engaging before being fully prepared deters investors. Its growth plan advocates economic ambition and the council continues to target specific growth sectors, programmes, initiatives and projects with a focus upon:

• site readiness, with infrastructure and delivery plans in place to reduce development risk
• flexible public sector support tailored to individual project needs
• a coordinated approach across planning, economic development, and skills 
• strategic land ownership and partnerships with developers to facilitate delivery 
• a consistent county-wide strategy maintained through governance changes. 

Outcomes 

The council’s approach has contributed to business retention and expansion, including reinvestment by existing firms. Strategic investments, such as the National Cyber Force facility in the Samlesbury area and civil service relocations to Blackpool, have been secured. Some previously stalled sites have progressed through public-private collaboration and targeted intervention. Together, these have helped the council deliver on its goals for better infrastructure businesses and jobs for residents.

Lessons for other councils 

• Prioritising support for existing businesses can provide a stable foundation for growth. 
• Ensuring site readiness before marketing is important to avoid reputational risks. 
• Flexible public intervention can help address viability challenges in difficult markets. 
• Linking investment to skills provision supports inclusive outcomes. 

Maintaining strategic continuity through institutional change can support long-term delivery.