Sign-up here to receive the monthly iED bulletin
Sign-up here to receive the monthly iED bulletin
Economic development leaders have called for a new model of urban growth, after an Institute of Economic Development (iED) roundtable warned that traditional ‘trickle‑down’ policies are failing to raise living standards in many city communities.
The session – entitled Delivering Good Growth in Urban Settings – highlighted growing concern that traditional economic models have failed to narrow inequality or raise disposable income in many urban areas. Participants instead called for a more flexible “twin‑track” model that combines innovation‑led growth in high‑performing sectors with targeted, long‑term support for disadvantaged communities.
Experts from business, academia and local government agreed that this dual focus could both expand high‑value sectors and innovation clusters that boost productivity, and sustain long‑term grassroots initiatives tackling deprivation, building skills and anchoring wealth within local communities.
This approach, they said, would ensure the benefits of economic success are more evenly shared across all communities. However, they warned that cities can only deliver this twin‑track agenda with greater devolution of powers, stronger investment control, and local wealth‑building models that translate directly into better outcomes for residents.
These messages emerged from the first in the iED’s new Good Growth roundtable series, which brings together senior figures from local and combined authorities, business, and the third sector to explore how the UK can deliver more inclusive and sustainable prosperity.
Nigel Wilcock, Executive Director of the iED, said: “For too long, innovation and inclusion have been treated as separate agendas – chasing productivity on one track and tackling inequality on another. This assumes growth in high‑performing sectors will naturally filter through to everyone else, which simply isn’t the case.
“The twin‑track approach discussed at our first Good Growth roundtable recognises that these goals must work in tandem if growth is to be fair and lasting. It’s about linking the dynamism of high‑value sectors with the everyday realities of people and places still left behind.
“For economic development professionals, that means embedding social and institutional capital into local strategies so family firms and inward investors both thrive. For local authorities, it means broadening Section 106 and social‑value frameworks to support local procurement and genuine community engagement. And for combined‑authority and city‑region leaders, success depends on managing devolved powers collaboratively – ensuring clear roles and shared purpose across every layer of governance.
“Only by aligning innovation with inclusion can we build an economy that truly raises living standards everywhere.”
The iED’s Good Growth roundtable series will run throughout the year, with insights feeding into the organisation’s Good Growth Framework and its accompanying report, to be launched ahead of the organisation’s annual conference in November. The framework will set out six thematic pillars for sustainable prosperity – from equality of opportunity and strong public services to environmental outcomes, corporate responsibility and community support.
