Inclusive Growth in Action: Lessons from Newham’s Landmark Plan
- truthaboutlocalgov
- Jan 11
- 6 min read
Growing Prosperity with Purpose
Over the past decade, Newham’s economy has grown at a pace that outstripped both London and the national average, a remarkable achievement for a borough that sits at the heart of East London’s regeneration story. Yet, this success masked a persistent challenge: too many residents, particularly in vulnerable communities, were not feeling the benefits of that growth. Rising investment and development did not always translate into improved life chances for those on the lowest incomes, and inequality remained stubbornly high.
Recognising this, Newham launched its landmark Growth Plan (2025–2030), a bold strategy that redefines what economic success looks like. Rather than focusing solely on GDP or job creation, the plan is rooted in the principle of inclusive prosperity, growth that lifts everyone, not just the few. This means tackling structural barriers, ensuring fair access to opportunities, and embedding social value into every development decision.
A key partner in shaping this vision has been the UK’s Institute for Global Prosperity (IGP). Over a decade-long collaboration, IGP worked with local citizen scientists to understand what prosperity truly means for Newham residents. Their findings were clear: while wages matter, they are only part of the picture. What people value most is livelihood security, the confidence that they can access affordable housing, secure and meaningful work, essential services, and a supportive community. Prosperity, in other words, is about stability and dignity, not just income.
This insight has transformed Newham’s approach. The borough is moving beyond traditional metrics like job numbers and inward investment. Instead, it has introduced the Citizen Prosperity Index, a pioneering tool that measures real improvements in residents’ well-being. This index tracks indicators such as housing affordability, access to green spaces, digital inclusion, and health outcomes, providing a holistic view of whether growth is genuinely improving lives.
By embedding these principles, Newham is setting a new standard for local government economic planning: one that prioritises people over projects, and outcomes over outputs. It’s a model that other councils can learn from, proving that growth can be both ambitious and equitable when guided by purpose.
What the Numbers Say
The statistics behind Newham’s Growth Plan reveal both the scale of the challenge and the ambition of the response.
30 per cent of the workforce earns less than the London Living Wage.
This figure underscores why inclusive growth is not optional, it’s essential. Despite a thriving economy, too many residents remain trapped in low-paid, insecure work. The Growth Plan aims to tackle this head-on by prioritising sectors that offer higher wages and career progression, alongside targeted skills programmes to help local people access these opportunities.
Nearly 40 per cent of households live on incomes below 60 per cent of the UK average (after housing costs).
This is a stark indicator of entrenched inequality. For many families, rising living costs and housing pressures mean that even full-time work does not guarantee financial security. Newham’s strategy recognises that prosperity must go beyond job creation, it must address affordability, access to services, and community resilience.
The Growth Plan identifies council-owned land capable of delivering up to 8,000 new homes, with 1,500 council homes already slated for delivery by 2026.
Housing is the cornerstone of livelihood security. By leveraging its own assets, Newham is not only accelerating housing delivery but ensuring that a significant proportion is genuinely affordable. This approach demonstrates how councils can use their land strategically to meet housing need while driving regeneration.
Newham’s economy has already grown well above both London and UK rates over the past decade, though persistent inequality remains.
This paradox, high growth alongside high deprivation, is precisely what the Growth Plan seeks to resolve. Economic expansion alone does not guarantee fairness. By embedding social value and inclusive principles into every investment decision, Newham is working to ensure that future growth benefits all residents, not just the most advantaged.
Priority Sectors Shaping the Future
To translate the Growth Plan into tangible outcomes, Newham has zeroed in on three high-growth sectors that combine economic potential with social impact. These sectors are not chosen at random, they reflect both the borough’s existing strengths and the future skills landscape that will define inclusive prosperity.
Digital and Data
The digital economy is no longer a niche, it’s the backbone of modern growth. Newham is investing in digital infrastructure and skills programmes to ensure local residents can access careers in tech, data analytics, and emerging fields like AI and cybersecurity. By partnering with industry and education providers, the borough aims to close the digital divide and create pathways into well-paid, future-proof jobs.
Construction and Green Skills
With thousands of new homes planned and a commitment to sustainability, construction is a natural growth engine. But Newham is going further, embedding green skills into its workforce strategy. This means training local people for roles in low-carbon building, retrofitting, and renewable energy projects. These jobs not only support housing delivery but also advance the borough’s climate goals, creating a virtuous cycle of economic and environmental benefit.
Creativity and Culture
Newham’s rich cultural heritage and proximity to London’s creative industries make this sector a powerful lever for inclusive growth. From film and design to music and performance, creative industries offer opportunities for entrepreneurship and community engagement. The Growth Plan seeks to nurture this ecosystem through investment in cultural spaces, skills development, and partnerships that connect local talent to global markets.
Together, these sectors are more than economic drivers, they are vehicles for social mobility. By aligning training, investment, and innovation with these priorities, Newham is ensuring that growth is not just about numbers, but about creating meaningful opportunities for its people.
A Dash of Accountability
One of the most innovative aspects of Newham’s Growth Plan is its commitment to transparency and measurable impact. Uniquely, the borough is co-designing a live monitoring dashboard in partnership with the Institute for Global Prosperity (IGP). This isn’t just a reporting tool, it’s a real-time accountability mechanism that puts residents at the heart of the growth story.
The dashboard will track livelihood security metrics, ensuring that progress is judged not by abstract economic indicators but by tangible improvements in people’s lives. This means both the Council and the community can see, at a glance, whether growth is delivering on its promises.
Key measures include:
Secure, well-paid jobs – Are local people accessing stable employment with fair wages?
Affordable, quality homes – Is housing delivery meeting real affordability needs?
Access to green, healthy public spaces – Are regeneration projects enhancing wellbeing and sustainability?
Meaningful advancement in digital inclusion – Is the digital divide narrowing, enabling residents to thrive in a tech-driven economy?
By making these metrics visible and actionable, Newham is setting a new standard for local government: growth must be accountable, not just ambitious. This approach builds trust, empowers communities, and ensures that every pound invested translates into real social value.
Lessons for Other Authorities
Newham’s approach offers a practical blueprint for councils seeking to make growth genuinely inclusive. Here are five key takeaways:
Place lived experience at the heart
Economic strategies often fail when they overlook the realities of everyday life. By embedding citizen research and co-design into planning, Newham ensures its Growth Plan reflects what residents truly value, secure livelihoods, affordable homes, and strong communities.
Measure impact, not just inputs
Counting jobs and investment is easy, but it doesn’t tell the whole story. Tracking outcomes such as housing affordability, digital inclusion, and health indicators provides a far more accurate picture of success. This shift from outputs to outcomes is essential for meaningful progress.
Prioritise sectors with dual impact
Choosing sectors that deliver both economic growth and social benefit is a game-changer. Digital, green construction, and creative industries not only create jobs but also foster innovation, sustainability, and cultural vibrancy, benefits that ripple through communities.
Use council assets strategically
Public land is a powerful lever for change. Newham’s plan to unlock 8,000 homes, while ensuring affordability and community benefit, shows how councils can turn assets into engines of inclusive growth.
Commit to transparency
Open monitoring builds trust and drives continuous improvement. Newham’s live dashboard sets a new standard for accountability, enabling residents and decision-makers to see whether growth is delivering real-world benefits.
Final Thoughts
Newham’s approach, growing its economy while ensuring that growth is inclusive, equitable, and measurable, offers a compelling blueprint for other local authorities. It demonstrates that prosperity is not just about attracting investment or creating jobs; it’s about shaping a future where every resident can thrive.
By:
Grounding the plan in citizen-led research, ensuring strategies reflect real community priorities,
Prioritising key opportunity sectors that combine economic potential with social impact,
Leveraging public land to deliver thousands of homes, addressing affordability and stability, and
Embedding real-time accountability via a dashboard, making progress transparent and measurable,
…Newham is not just shifting the dial, it’s building a lasting legacy of prosperous communities.
For Directors of Place and Economic Growth, the lesson is clear: inclusive growth isn’t a nice-to-have, it’s a strategic must. Councils that embrace this approach will not only deliver stronger economies but also healthier, fairer, and more resilient communities.
