County and rural economies across England could have generated an additional £19bn in economic output had they matched national growth rates over the past decade, according to new research that raises fresh questions about the distribution of government investment and devolution powers.
The report, Growth in Every Postcode: Maximising the Opportunity in County Areas, published by the County Councils Network (CCN) and Grant Thornton UK, argues that county and rural communities are being left behind by successive governments that have prioritised major cities, metropolitan regions and mayoral authorities.
With the Autumn Budget approaching, the CCN is urging ministers to make county growth a central part of economic policy and warning against creating what it describes as a nation of "urban haves" and "rural have nots".
The research found that county and rural areas recorded real economic growth of 14.7% between 2013 and 2023, 2.5 percentage points below the national average.
According to the report, had these areas matched overall national growth rates, England’s economy would have been worth an additional £19bn in 2023 alone.
The gap becomes even more pronounced when county areas are compared with urban regions led by metro mayors. If county and rural areas had achieved the same 19.2% growth recorded by metropolitan districts, their collective output would have been £34bn higher, the report states.
Researchers identify weaknesses in infrastructure, transport and digital connectivity as major barriers to growth.
While London enjoys 95% 5G coverage across all four major mobile operators, some county areas have coverage rates as low as 24%.
Public transport connectivity also remains a challenge. Workers living in county areas spend an average of around 40 minutes travelling by public transport to reach nearby towns or cities with significant job opportunities, approximately 70% longer than comparable journeys in urban locations.
The report argues that these limitations reduce productivity, restrict access to employment and make it harder for businesses to attract investment.
Despite often outperforming urban counterparts on employment levels, county economies face a different challenge: a shortage of higher-paid local jobs.
The research found that residents who commute outside their county for work earn around 7% more than workers employed locally, indicating that many county areas struggle to retain skilled workers and attract higher-value industries.
While county areas perform strongly in early years education, the report highlights significant concerns around adult skills provision.
Participation rates in adult further education stand at approximately 4,700 learners per 100,000 adults, the lowest rate recorded anywhere in England. The CCN argues this limits workforce development and hampers productivity growth.
The findings come amid growing debate over the government's devolution agenda and plans to transfer further powers to mayoral authorities through its "Rewiring the State" programme.
The CCN notes that 18 county areas, representing around 12 million residents, remain without devolution deals. It argues that many of the programme's key benefits, including income tax retention powers, 16-19 education budgets and Good Growth Funds, remain largely accessible only to mayoral authorities.
County leaders are calling for the completion of England's devolution map by the end of 2028 and want areas to be able to secure Established Mayoral Strategic Authority status within six months of electing a mayor, rather than waiting the current 18 months.
The organisation is also urging ministers to provide non-mayoral county areas with access to powers and funding comparable to those enjoyed by existing mayoral combined authorities.
The report stresses that a uniform approach to county growth would be ineffective, highlighting the vast differences between places such as Surrey, Cumberland, Cornwall and Lancashire.
Instead, it recommends a tailored strategy focused on local infrastructure investment, devolved decision-making, greater control over skills provision and enhanced business support programmes.
Cllr Mick Barton, Devolution and Economic Growth Spokesperson for the County Councils Network, said:
“I am one of a select few county leaders with a devolution deal in place. We’ve worked collaboratively with the East Midlands Combined Authority, delivering its vision on the ground and helping to drive inward investment into the region.
“But too many of my colleagues across the country do not have the same opportunities and we are at risk of creating a country of ‘urban haves’ and ‘rural have nots.’ So far, the Prime Minister has appeared narrowly focused on strengthening the suite of powers mayors have further, whilst neglecting England’s counties.
“Next week’s Budget should be a turning point away from an approach from successive governments that have been wholly city focused. This report shows that England’s counties are not asking government to manufacture economic potential from scratch – what they need is the powers, investment and policy to maximise their potential. Ministers are missing a trick if they continue to design growth policy around a handful of cities.
“The prize for matching counties’ ambitions is enormous: a multi-billion pound boost to the national economy, through better infrastructure, employment and education for county residents, translating higher earnings into growth.”
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