Govt data shows £127m LGF helped deliver 5,500 Cheshire homes
The use of a single pot of government funding has been hailed as a “significant enabler” in a case study of the region by Steer Economic Developments.
First announced in 2013, the Local Growth Fund is a single £12bn pot of devolved funding to be used for targeted economic growth.
The initiative brought together funds from various government departments and gave local areas, via local enterprise partnerships, the responsibility to determine how the cash should be spent to meet local needs.
A regional study of Cheshire, which has an LEP combining Cheshire East, Warrington, and Chester and Cheshire West councils, showed the outputs of the LGF’s £127.7m contribution to the LEP until March 2024.
Data indicates the pot contributed to the delivery of 5,528 homes and 13.4km of new or resurfaced roads to the area under the LEP.
The report states: “The single pot of funding was a significant enabler, allowing the LEP to allocate resources in line with both local and sub-regional priorities while maintaining the flexibility to respond to emerging economic needs.”
Previously, resource distribution was limited due to funding restrictions being tied to specific government departments.
The report found LGF’s portfolio has created more than 9,100 jobs and 4.46m sq ft of commercial floorspace for the region, but only 7% of this commercial space has been occupied.
Consultees noted the “significant” leveraging of investment into the sub-region as a long-term outcome of LGF funding.
In addition, the administration of funding at the LEP level was widely recognised as “a major strength” of the LGF, and “enabled closer engagement with project beneficiaries, more responsive decision-making, and smoother project delivery”.
However, the report did note a lack of revenue presented challenges as it limited early-stage project development – this meant that early investments were prioritised for shovel-ready schemes, rather than “strategic alignment”.
Transport, which was identified in the Cheshire and Warrington LEP as a key area for investment, was given £53.3m from the LGF, amounting to 42% of its total allocation for the area.
Regeneration efforts across four public realms in the region received £24.5m, 19% of the fund.
Innovation schemes received £19.1m, and skills capital projects took in £17.1m of investment.
Several key projects initiated via LGF contributions are highlighted in the report, including £3.8m for the £10.9m road improvement project that unlocked 74 acres of employment land at Winsford Industrial Estate.
In addition, the Congleton Link Road, a £90.7m road improvement scheme that was completed in 2021, was supported by a £7.7m LGF contribution.
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Since its opening, congestion has been reduced, journeys sped up, and accessibility to surrounding areas has been widened.
As a direct consequence of the link road, 1,260 homes were built, and almost 400,000 sq ft of commercial space was created.
A 2014 revision of the region’s strategic economic plan enabled the LGF’s strategic allocation and deployment of “transformative capital projects” such as the road improvements.
These unlocked housing and employment land, providing the infrastructure that, in its absence, had hindered the region’s economic development.
