9 October 2007

Building better incentives for local economic growth: reforms to the Local Authority Business Growth Incentives scheme

The Government is committed to empowering Local Authorities to fulfil their strategic role in enabling England's localities and regions to meet the challenges of an increasingly competitive global economy. This was outlined in the 'Review of sub-national economic development and regeneration', released earlier this year, and supported by the 'Lyons Inquiry into local government'.

In 2005 the Government introduced a three-year Local Authority Business Growth Incentives scheme (LABGI) to help Local Authorities raise prosperity and tackle disparities across regions. Building on the lessons of the current incentive, and after wide discussion with local government and business, the Government is releasing an issues paper, 'Building better incentives for local economic growth', to seek views on how to reform the scheme.

The Government will consult widely both on the core issues around a reformed scheme and, early in 2008, on detailed proposals to ensure a scheme is developed that provides Local Authorities with the incentive and confidence to plan for the long-term well-being of their areas.

The issues paper, along with other relevant material, is also available and electronic responses should be sent to labgi.consultation@communities.gsi.gov.uk

Building better incentives for local economic growth: reforms to the Local Authority Business Growth Incentives scheme is available in Adobe Acrobat Portable Document Format (PDF). If you do not have Adobe Acrobat installed on your computer you can download the software free of charge from the Adobe website. For alternative ways to read PDF documents and further information on website accessibility visit the HM Treasury accessibility page.

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2007 Pre-Budget Report and Comprehensive Spending Review index