How Can We Tell Whether Economic Growth Is Inclusive?

Economic growth is often described as inclusive, but a rise in an area’s economic output does not necessarily mean that its benefits are reaching the people or communities a strategy aims to support.

Nigel Wilcock, Executive Director of the Institute of Economic Development (IED) and Managing Director of Mickledore, has shared some reflections with RSN on how local authorities can measure inclusive growth more meaningfully. He draws on examples including Preston’s approach to local procurement, employment support trials in Sheffield and the West Midlands, and the Big Local programme.

A common theme is the need to be clear about what is being measured. Money spent with local suppliers, for example, shows where spending has gone. It does not, by itself, show whether residents facing the greatest barriers have gained work or seen their circumstances improve. Equally, a community project may make a meaningful difference to the people involved without being large enough to shift area-wide statistics.

For rural areas, measures of growth also need to account for the circumstances of the people who live there. Jobs created in an area may be taken by people who commute in, while transport, housing costs, health and caring responsibilities can affect whether local residents are able to benefit.

Nigel’s central point is that authorities should decide at the start of a strategy what they want to change, for whom and how they will know whether it has worked. That means looking beyond headline growth figures and choosing measures that reflect the outcomes intended for local people.