Unlocking place-based growth: The power of collaboration in local government

Constrained budgets, rising service demands, housing shortages, and the urgent need to deliver on net-zero commitments - local governments across the UK are grappling with challenges across diverse domains. Yet within these pressures lies a significant opportunity to transform public services and unlock long-term prosperity and place-based growth. When local authorities, central government, private partners, and communities work together by pooling resources, aligning investments and creating integrated approaches, cross-sector collaboration can become not just helpful but transformative.

Local Partnerships, a joint venture between the Local Government Association (LGA), HM Treasury and Welsh Government, sits at the heart of a similar collaborative ecosystem. Through frameworks such as Re:fit and the Welsh Government Energy Service, the organisation has facilitated hundreds of millions of pounds in infrastructure investment while helping councils build the capability needed to drive sustainable regional growth. We spoke with Adele Gritten, Chief Executive of Local Partnerships, about unlocking place-based growth through effective collaboration between local authorities, central government and delivery partners.

Key insights

• System challenges need systems thinking: Housing, climate action, and economic development are deeply interconnected and require integrated approaches that recognise how different policy areas reinforce one another.
• Climate action as a lever for growth: The shift to net-zero represents one of the largest economic opportunities of our generation, with local authorities uniquely positioned to develop green skills, attract renewable investment, and support clean industries.
• Success factors for inclusive partnerships in regional transformation: Clear shared outcomes, robust governance, long-term funding, investment in cross-sector skills, trusting and empowering local leaders, and innovation rooted in the lived experiences of local communities are essential to delivering place-based transformation.

What are the most pressing policy and delivery challenges facing local government today?

Local government is operating in a landscape marked by volatility and uncertainty. The most pressing challenges are well known, but their complexity continues to deepen, not least in the context of Local Government Reorganisation (LGR) and Devolution.

Years of constrained funding, rising demand for services, and inflationary pressures have left many councils facing difficult choices. The need to do more with less is now a permanent feature, not a temporary phase.

Then there is the shortage of affordable, quality homes. Local authorities are grappling with rising homelessness, a lack of social housing, and the need to retrofit existing stock to meet climate targets.

Councils are at the frontline of the UK’s net zero ambitions, responsible for everything from decarbonising transport to improving energy efficiency in public buildings. Yet, the scale of investment and coordination required is daunting.

Many communities feel left behind, with persistent gaps in skills, employment and health outcomes.

These challenges are not isolated but deeply interconnected. Addressing them requires a systems approach and a new era of collaboration between local authorities, central government, delivery partners and civil society.

Where do you see the greatest opportunities for long-term, place-based growth?

Despite the headwinds, I am optimistic about the potential for long-term, place-based growth. The greatest opportunities lie in three interlinked areas:

1. Housing as a catalyst for regeneration

Investing in housing is about more than bricks and mortar. Done well, it can drive regeneration, improve health outcomes and stimulate local economies. The most successful projects integrate housing with transport, skills, and community infrastructure to create places where people want to live and work.

2. Climate action as economic opportunity

This is not just an environmental imperative; it is a huge economic opportunity. Local authorities can lead the way in developing green skills, attracting investment in renewables, and supporting the growth of clean industries. Collaboration with the private sector and anchor institutions is essential to unlock these opportunities at scale.

3. Local economic development and inclusive growth

True levelling up requires a focus on inclusive growth, ensuring that all parts of the community feel economic benefits. This means supporting SMEs, fostering innovation, and investing in skills and education. Strong partnerships with business, education providers, and the voluntary sector are key to making this a reality.

What are the key enablers of effective cross-sector collaboration?

Delivering outcomes across complex systems (such as energy, housing and infrastructure) demands more than goodwill. In my experience, three enablers are critical.

The first is shared vision and outcomes. Successful collaborations start with a clear, shared vision of what partners want to achieve. This means co-designing outcomes with communities, not imposing solutions from above.

Secondly, creating effective partnerships with robust governance structures that enable joint decision-making, transparency, and accountability builds trust and ensures that all voices are heard.

Finally, collaboration requires investment in people and skills. This includes project management, commercial expertise and the ability to work across organisational boundaries.

Can you share examples of partnerships that have delivered tangible impact?

Local Partnerships has brokered and supported a wide range of successful collaborations that have delivered tangible economic, social and environmental value across the UK. For example, through the Welsh Government Energy Service, Local Partnerships has facilitated over £26 million in capital investment, generating £32 million in income from renewable energy and energy efficiency measures, and achieving a reduction of 78,000 tonnes of CO₂e.

Our Re: fit framework has enabled public sector bodies to deliver £418 million in capital investment, resulting in annual energy cost savings of £25.8 million and annual carbon savings of nearly 70,000 tonnes.

Local Partnerships also played a pivotal role in developing and implementing the Mutual Investment Model in Wales, which facilitated the procurement of £1 billion of infrastructure and has supported the development of hundreds of megawatts of renewable energy capacity. These partnerships exemplify how Local Partnerships brings together local authorities, central government, and delivery partners to accelerate climate progress, infrastructure and place-based regeneration, ensuring best value for the public purse and lasting benefits for communities.

Another example is the Wirral Waters regeneration. When a flagship plan for 13,500 new homes stalled, we stepped in. We unlocked £6 million in infrastructure funding and brokered a breakthrough between the council, Homes England and private developers. Our expertise turned a stalled vision into the UK’s largest brownfield housing scheme, accelerating delivery, protecting green belt land and setting a new standard for place-based regeneration through honest and pragmatic partnership.

Looking ahead, what are the critical success factors for ensuring partnerships deliver sustainable, long-term outcomes?

Several things need to come together. Central government must trust and empower local leaders, providing the flexibility and resources they need to tailor solutions to local contexts. New strategic authorities working hand in glove with new unitary authorities will be key to this.

Short-term funding cycles undermine ambition. Multi-year settlements and place-based funding deals are essential to enable strategic planning and investment.

We must create space for experimentation and a culture of learning and innovation, learning from what works (and what doesn’t), and scaling up successful approaches. Test, learn and grow is welcome in this context.

Partnerships must be rooted in communities' lived experiences, ensuring that all voices are heard and benefits are shared equitably.

The challenges facing local government are formidable, but they are not insurmountable. By embracing collaboration, we can unlock the potential for sustainable and inclusive growth. Local Partnerships stands ready to support this journey, working with all our partners to deliver better outcomes for people and places.

This Q&A is part of WIG's Members' Perspective series, featuring real-world insights and examples of how the public, private, education, and not-for-profit sectors are tackling shared policy challenges through collaboration and innovation for the UK's long-term economic growth.

Join us in our upcoming policy dialogue events to engage directly with senior leaders shaping the UK's agenda on the Industrial Strategy and place-based growth.