Exploring the Concept of Governance Capacity

This short report summarises the findings from a Local Policy Innovation Partnership (LPIP) Hub workshop carried out to explore the concept of governance capacity as a critical enabler of effective regional development and inclusive growth. Hosted by the LPIP Hub and led by Dr Charlotte Hoole, the session brought together stakeholders from across the UK’s four LPIPs to examine how governance capacity is defined, measured, and distributed. The discussion aimed to unpack the complexities of sub-national governance, particularly in the context of ongoing reforms in England and the growing interest in mission-driven government. Participants were encouraged to reflect on the meaning of governance capacity, the feasibility and value of measuring it, and how it is unevenly distributed across regions and actors.

“There is a pressing need for central government to engage more meaningfully with regional voices” Dr Charlotte Hoole.

The report urges researchers and policymakers to prioritise the development of context-sensitive frameworks for understanding and measuring governance capacity, grounded in real-world case studies. It calls for a deeper investigation into informal governance mechanisms, such as trust-based relationships and collaborative practices, which are often overlooked but essential to effective governance. The report also highlights the need to evaluate the role of anchor institutions as conveners and capacity-builders within governance ecosystems. Additionally, it advocates for comparative research, especially with federal systems abroad, to inform the UK’s evolving English devolution agenda. Finally, it stresses the importance of developing and testing composite metrics and mixed-methods approaches to better capture the relational and contextual dimensions of governance capacity in a scalable and evidence-based way.


Meet the Author

Dr Charlotte Hoole

Charlotte Hoole is a Research Fellow at the City-Region Economic Development Institute (City-REDI). Her research broadly considers the geographical and political economy of local and regional development, governance and policy. Her current work focuses on English devolution and public funding allocation in the UK. Prior to this, she has worked on projects looking at the impact of governance structures in the formulation of place-based policies and central-local relations, and their role in shaping regional disparities.

Publications

Business Cases and Place-Based Funding

This report critically examines the application of the Better Business Case Green Book model by practitioners when seeking to secure past place-based economic development funding. The business case framework is used to appraise and manage the development of an intervention, as set out in the HM Treasury’s Green Book guidance.

Valuing What Matters: Reclaiming Social Value for System Change

This policy brief argues that social value must be reclaimed as a driver of system change rather than reduced to compliance exercises. It outlines a stewardship approach across three dimensions – procurement, governance, and community voice – demonstrating how public spending can serve as anchor investment, align decision-making around a