Introducing the Main Themes, Functions and Activities

Introduction

Local and Regional Economic Development (LRED) is a multifaceted field dedicated to enhancing economic prosperity and quality of life in specific geographic areas. This briefing outlines the core functions and activities of LRED, highlighting its significance and the key areas professionals engage with daily. Understanding these interconnected functions is crucial for effectively addressing local economic challenges and opportunities.

Why Local Economies Matter

The UK exhibits significant disparities in economic growth and job creation across local areas, with economic output per head varying dramatically. These inequalities, evident in GVA per capita, productivity, and job growth rates, underscore the necessity of place-based interventions to complement national economic policies.

Industrial restructuring, particularly the loss of 3.3 million manufacturing jobs in the 1970s and 80s, has been a major driver for LRED. This transformation led to persistent high unemployment and economic decline in formerly prosperous industrial regions, necessitating economic diversification, new growth sectors, and workforce reskilling. These challenges highlight the universal need for robust local economic development capacity.