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Local government

Local Authority Business Growth Incentives (LABGI) scheme

The Local Authority Business Growth Incentives (LABGI) scheme gives local authorities a financial incentive to encourage local business growth by rewarding qualifying business growth with a non-ringfenced grant.

LABGI operated over three years, from 2005-06 to 2007-08 and the Government distributed over £934m to local authorities in England. It did not operate in 2008-09, but resumed in 2009-10 in a substantially changed form, details of which the Government announced in July 2009. These changes made the scheme more transparent and predictable; and aimed to encourage cooperation on economic development at a sub-regional level.

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