ACS

Local Government Minister Rosie Winterton has announced that councils must give their area an 'economic healthcheck' to work out what needs to be done to get them on the road to recovery. The new responsibility is part of the Local Democracy Economic Development and Construction Act which is due to commence in April 2010. The Government has also legislated to create 'Economic Prosperity Boards' that will give local authorities the ability to create an executive decision-making body to promote economic development as part of the regional strategy.

Councils will have to carry out a comprehensive breakdown of every local factor that can positively or negatively affect economic growth as well as looking at the overall competitiveness and productivity of their area. They must then decide how to addresses barriers to growth, for example plugging local skills gaps, find business trends to identify the barriers that stop certain groups from working.

Draft guidelines for councils on how to successful carry out an ‘economic healthcheck’ have been released for consultation. This can be found at: www.communities.gov.uk/publications/localgovernment/localeconomicassessmentsconsult

Rosie Winterton said: "Economic growth does not just happen by itself, particularly in the current climate. It's never been more crucial for councils to understand what will help or hinder their area's steps towards recovery.”