East of England: A Vital Contributor to the UK’s Economic Future, Say Councils in Strategy Response

Councils across the East of England are urging the Government to recognize the region’s unique strengths and contributions in its consultation response to the Government’s “Invest 2035” Industrial Strategy.

In a detailed response led by the East of England Local Government Association (EELGA), regional leaders have showcased how the East is already driving growth in critical industries, and how targeted investment could unlock even more potential.

The response, developed with key partners including Transport East, England’s Economic Heartland, Freeport East, and others, emphasizes the East’s leadership in five of the eight high-productivity sectors identified in the Government’s consultation: Life Sciences, Digital Services, Clean Energy Generation, Creative Industries, and Advanced Manufacturing.

Councillor Andrew Mellen, Lead Member for Infrastructure, Planning and Growth at EELGA and Leader of Mid Suffolk District Council, said “The East of England is a thriving region full of high productivity and high-tech industries. However, the Government must understand that we are not another Metropolitan area, and that we need specific solutions – connectivity in particular – in order to make the most of our strengths. Furthermore, there is a need for Central Government to see that while Cambridge is a world-leading cluster, our region is full of UK-leading and world-leading clusters in key industries, including space exploration in Stevenage, digital technology in Ipswich, life sciences in Norwich, advanced manufacturing in Peterborough, as well as a hugely productive and innovative agricultural industry across the region.”

The East of England is a regional engine for UK Growth. According to EELGA’s flagship report, Opportunity East, the East of England could contribute £220 billion to the UK economy by 2035, driven by its globally recognized expertise in R&D, the highest per head in the UK. The region is also one of the few net contributors to the Treasury, underscoring its value to the national economy.

However, regional leaders warn that underinvestment is holding back this potential. Public sector spending in the East is currently £8 billion lower than it should be, given its population and output. Addressing this funding gap could fuel sustainable, high-productivity growth that benefits both the region and the wider UK.

Tackling Unique Challenges in a Rural Economy

The East of England’s largely rural landscape means its infrastructure needs are different from metropolitan regions. Improved road, rail, and digital connectivity is essential to enable businesses to thrive and expand. Infrastructure projects like East-West Rail and upgrades to the Ely and Haughley junctions are critical for improving freight flow, reducing road congestion, and supporting growth.

Water infrastructure is also a pressing issue. As the driest part of the UK, some businesses already struggle to connect to water supplies, while coastal areas face increasing risks of flooding and erosion. Climate change is expected to exacerbate these challenges, making investment in water resilience and management a priority.

Empowering Local Leadership

EELGA is also calling on the Government to allow willing councils to develop Local Growth Plans, even in areas awaiting devolution deals. Delays in granting devolved powers shouldn’t hold back regions like the East, which are ready to act now.

With the Invest 2035 white paper due next spring, the East of England is making a strong case for its role as a cornerstone of the UK’s economic future. Local leaders are ready to deliver – but they need the Government’s backing to unlock the region’s full potential.

The full EELGA response to Invest 2035 can be found online at https://www.eelga.gov.uk/app/uploads/2024/11/Final-EELGA-Industrial-Strategy-Response.pdf

Opportunity East can be found online https://www.eelga.gov.uk/app/uploads/2024/07/Opportunity-East-Report.pdf