Local economic assessments (LEAs) should form key part of evidence base for Local Development Frameworks, says CLG

The Government has stressed that the proposed new requirement for local economic assessments (LEAs) should form a key part of the evidence base for the preparation of Local Development Frameworks.

That expectation has been highlighted in draft guidance on the new requirement, due to come into force next April as a result of the administration's Local Democracy, Economic Development and Construction Bill. That legislation is currently under Parliamentary scrutiny.

Communities and Local Government (CLG) has published the draft guidance to give local authorities and partners an early sight of current thinking about the planned new duty. This takes on board work already carried out by the Improvement and Development Agency (IDeA) and the Planning Advisory Service, who have posted the first draft of the sector-led guidance on economic assessments.

This has been developed by consultants (Rocket Science and Globe Regeneration) working with an action learning set of 17 local authorities. It has been prepared in liaison with many partner organisations, including ONS and CLG, and provides a detailed and comprehensive “how to” guide to undertaking local economic assessments.

CLG has proposed that LEAs should:

• Provide a sound understanding of the economic conditions of the area and how they affect residents and businesses
• Indicate the comparative strengths and weaknesses of the local economy and the nature and form of local economic challenges and opportunities
• Identify the local economic geography, including the economic linkages between the area being assessed and the wider economy
• Set out the local constraints to economic growth and employment and the risks to delivering sustainable economic growth

The department says that local authorities should adopt a broadly consistent approach to assessments so they can be compared and readily aggregated to support sub-regional and regional strategies.

CLG has emphasised that councils should examine the extent to which local housing provision and infrastructure supports the economic sustainability of the area and whether there is sufficient housing of the right size and affordability 'to support economic growth and economic inclusion'.

The advice has also made it clear that all councils must have 'a good understanding of how land is to be used for economic development'.