ABSTRACT
Local and regional economic development is not the monopoly of any one agent. It involves many agents of which government and its departments are an important but by no means dominant set of forces. As recognised by many in the Labour government, it is businesses that create economic growth not government. Central government in Britain, as in most countries, is organized with strong vertical divisions of functions between ministers and their departmental administrations. This leads to a situation in which many different government departments and ministers have an important role in economic development. Local government is an important agent of development in the local and regional economy. Local authorities have formal economic development powers, as well as more general powers deriving from their main services which can be important influences on economic development. They also can contribute leadership and participation in projects by working with others.
