Funding reform could boost local growth, new report suggests

A new report has highlighted how refining Government funding processes and streamlining the business case system could strengthen the delivery of local and regional growth.

Published by national planning and economic development consultancy Lichfields, the report suggests that a more accessible and targeted approach, particularly for areas where investment is needed most, would enable future public sector funding to better support regeneration and contribute more effectively to the UK’s wider economic goals.

The Funding Dilemma: Cracking the Business Case Code report explores the implications of the June 2025 Spending Review and a recent review of the approach and workings of HM Treasury Green Book. While the Government has signalled a shift away from competitive bidding, the report notes that more clarity is still needed on how new funding programmes will be structured and assessed.

For local authorities, developers and other organisations preparing for upcoming funding opportunities, the report outlines the steps applicants can take to strengthen their submissions. This includes early project planning, adopting a place-based approach and clearly evidencing local need and long-term value.

Richard Coburn, Senior Director at Lichfields, said: “The ambition to drive local economic growth is widely shared, but a more consistent and transparent approach to funding would help ensure that investment reaches the areas that need it most. With clearer expectations and a more flexible business case model, applicants will be better placed to shape strong proposals that align with Government priorities.”

To support this, Lichfields has developed a practical framework to help organisations prepare for future bids. It sets out the core components of an effective business case and offers guidance on how to demonstrate strategic fit, public value and deliverability.

Richard adds: “Local people know better than anyone what their communities need to thrive. The funding and business case approach we’re advocating is about giving them the tools, time, clarity and flexibility to make that case in a way that stands up to scrutiny.”

With further funding programmes expected in the coming months, the report encourages Government to provide greater transparency on future processes and urges prospective applicants to begin planning now with a focus on evidence-led proposals that reflect local priorities.