By Dr Luke Green

The foundational economy provides the social and physical infrastructures, goods and services that are essential to everyday life, including transport, food, energy, education, health and care. These sectors support economic growth and resilience as well as individual and societal wellbeing. But they are often overlooked in economic and industrial policy in favour of high-growth “frontier” sectors.

Amid rising levels of inequality and political discontent, consensus is growing among policymakers and academics regarding the need to strengthen local foundational economies to benefit people and places typically “left behind” by conventional growth strategies. This briefing explains the importance of strengthening the foundational economy for inclusive growth, and sets out principles policymakers should consider when seeking to do so through Local Growth Plans.