Economic Development and Regeneration

Hampshire and the Solent has a thriving economy, world-class sectors, and global reach. Economic output in Hampshire and the Solent is the largest in south-east England, totalling £72.6 billion.

89,900 businesses have created over 1.03 million job opportunities for our 2.06 million residents, of whom 1.3 million are of working age. Hampshire and the Isle of Wight is approximately 13% more productive than the UK economy. North Hampshire ranks as the third most productive area nationally and is the most productive area outside London.

Business strengths span a diverse mix of traditional and emerging sectors, including aerospace and defence, professional services, advanced manufacturing, marine and maritime, space, life sciences, and cleantech. With two major ports, Hampshire and the Isle of Wight serves as the UK’s leading export gateway to global markets – particularly to the Far East – and an export powerhouse, with total annual exports of goods and services valued at £21.7 billion.

Hampshire and the Solent Combined County Authority (HSCCA) will be granted a range of powers and responsibilities to support economic development and regeneration. Examples include:

• Local Growth Plan: the HSCCA must prepare and publish a Local Growth Plan. This plan will provide an overview of the area’s economy, set shared priorities with government, and outline a pipeline of investments. Statutory guidance will ensure the plan is clear and coherent.
• Economic assessments: the HSCCA, alongside Hampshire County Council, Isle of Wight, Portsmouth City Council and Southampton City Council, will be responsible for assessing local economic conditions.
• Promoting visitor growth: the HSCCA will have powers to encourage and promote visitors, supporting local economic activity.
• Pension scheme collaboration: the HSCCA will work with the Local Government Pension Scheme (LGPS) to identify and support investment opportunities that meet financial criteria and deliver local benefits.
• Long-term investment and funding: the HSCCA will manage a long-term investment fund and may consolidate local growth and place funding into a single pot, subject to future legislative arrangements.
• Partnerships for innovation and growth: the HSCCA will work with national bodies, such as UK Research and Innovation (UKRI) and Innovate UK, to develop joint action plans and strengthen local research and innovation capacity.
• Freeport: Solent Freeport will move into the HSCCA within two years of the HSCCA’s establishment and the HSCCA will take on the role of being the Accountable Body for the Freeport (currently Portsmouth City Council fulfils this role). This will link the Freeport more closely with relevant regional economic strategy and plans.
• Strategic energy leadership: the HSCCA will have opportunities to lead on coordinating local energy planning and support development of regional energy infrastructure.
• Additional roles: Other responsibilities include acting as the accountable body for Growth Hubs, building partnerships focused on domestic growth, exports, and investment, and supporting the local culture, sports, heritage and tourism sectors.

The HSCCA will play a central role in planning and promoting regional economic growth. By creating a Local Growth Plan, the HSCCA will set priorities for investment and coordinate with government and regional stakeholders and partners to ensure that funding and resources are allocated effectively.

In partnership with the Local Government Pension Scheme, the HSCCA will help identify projects that deliver both financial returns and positive local outcomes, such as new infrastructure, business support, or community facilities.

The HSCCA’s powers to promote tourism and encourage visitors will support local businesses and the wider economy. Collaboration with councils, government departments, and other public bodies will help drive innovation and enhance opportunities for economic regeneration throughout Hampshire and the Isle of Wight.

English Devolution and Community Empowerment Act 2026

English Devolution White Paper

The statutory functions of Mayoral Strategic Authorities, as set out in the English Devolution and Community Empowerment Bill and other legislation. Mayoral Combined County Authorities are a form of Mayoral Strategic Authority for areas with county and district councils.

Solent Growth and Prosperity Strategy

Economic Strategy and Economy and Growth Plan for Hampshire 2025-27

Local Growth Plan

One of the key roles of the HSCCA will be to promote economic growth across the region. This will include a statutory duty to produce a Local Growth Plan.  In July, the Government published guidance on the development of Local Growth Plans, which is available here: Guidance for Mayoral Strategic Authorities on developing Local Growth Plans – GOV.UK

As this guidance sets out, Local Growth Plans should include as a minimum:

• An economic overview of the region, including an ambitious, long-term vision for how to make the region more productive and focus on how local levers will drive growth. The economic overview should identify the key strengths, opportunities, and challenges for the regional economy, and include an overview of the most significant growth-driving sectors for the region.
• A number of shared priorities that are agreed with Government.  Shared priorities should be the region’s most significant opportunities for and constraints to economic growth, and should be cross-cutting priorities that can benefit a wide range of sectors and the regional economy at large.  Shared priorities already agreed by existing Mayoral Strategic Authorities are published here: Agreed shared Local Growth Plan priorities – GOV.UK
• An investment pipeline of priority projects that have specific significance for enabling growth. Local Growth Plans should highlight between four and 10 projects that are critical for unlocking growth in the region, and which have the potential to attract private investment, either with or without concurrent public investment or commitment. This small number of priority projects will be part of a much larger regional project pipeline.