A new report by national planning and economic development consultancy Lichfields reveals that funding reform could boost local growth by making Government funding processes more transparent, efficient and tailored to regional needs. The report, The Funding Dilemma: Cracking the Business Case Code, argues that refining the business case system and adopting a place-based approach would accelerate regeneration and better align public sector investment with the UK’s long-term economic goals.
Unlocking local potential
The report highlights that, while the Government’s June 2025 Spending Review signals a move away from competitive bidding, greater clarity is needed on how new funding programmes will be structured and assessed. According to Lichfields, simplifying the funding landscape and focusing on areas with the highest investment need would help local authorities and developers deliver projects with stronger economic and social impact.
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.”
Practical guidance for applicants
To help organisations prepare for upcoming funding opportunities, Lichfields has created a practical framework outlining how to build compelling, evidence-based submissions. Key recommendations include:
- Early project planning to align with future funding timelines.
- A place-based approach to reflect unique local challenges and opportunities.
- Clear evidence of long-term value, including economic, social and environmental benefits.
The report also emphasises the importance of demonstrating strategic fit, public value and deliverability to stand out in future funding rounds.
Looking Ahead
With new Government funding programmes expected in the coming months, the report urges both policymakers and applicants to act now. For the Government, this means providing greater transparency and consistency; for local authorities and developers, it means preparing evidence-led proposals that showcase local priorities and impact.
As Coburn notes: “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.”
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