Local authorities are poised to play one of the most powerful roles in the UK’s climate transition—not only as policy-makers, but as economic engines capable of reshaping the future.

From how they spend and invest, to how they regulate and convene their communities, councils influence billions of pounds in decisions every year. In doing so, they can generate long-term savings, attract inward investment, increase property value, improve health outcomes, and accelerate the UK’s journey to net zero.

A Modest Case Study into a Springboard for Leadership

The Royal Borough of Windsor and Maidenhead (RBWM) offers a compelling microcosm of this potential. Despite its modest size, only 150,000 residents and a low Band D Council Tax of £1,769.17, this small, poorly funded authority has economic influence over:

• £100 million in annual spend on staff, services and operations
• £50 million in infrastructure and capital investment each year
• £2 billion shaped by planning regulations and development decisions
• £4 billion invested through the local government pension fund
• £200 million in potential capital project investment from the same fund
• £3 billion in resident purchasing power
• £5 billion in local business purchasing power

Now, scale that across the UK’s 398 local authorities and the collective influence becomes extraordinary:

• £160 billion spent annually on staff, services and contracts
• £80 billion invested in infrastructure and development projects
• £164 billion governed by planning decisions for new buildings
• £400 billion managed through Local Government Pension Funds
• £20 billion available for direct local capital investment
• £1.6 trillion in resident purchasing power
• £4.48 trillion in business purchasing power

This is not only a toolkit for transformation—it is a springboard for leadership.

Diving Deeper

Let's explore how this small authority, or any authority can help propel change locally, nationally and internationally

1. Annual Spend on Staff, Services and Contracts

• RBWM: £100 million | UK-wide: £160 billion

How to Achieve:

• Cost reduction: By aligning procurement with net zero objectives—energy-efficient IT systems, EV fleet contracts, sustainable cleaning supplies—councils reduce long-term operating costs.
• Carbon impact: Switching to low-carbon suppliers and circular economy contractors can cut scope 3 emissions substantially.
• Public engagement: Local supplier inclusion and green job creation demonstrate visible climate leadership, building trust and pride.

“Public procurement is the single biggest opportunity to shape markets and reduce emissions at scale.”
— C40 Cities: Green Public Procurement Resource Hub

2. Annual Investment in Capital Infrastructure

• RBWM: £50 million | UK-wide: £80 billion

How to Achieve:

• Cost reduction: Investing in solar, insulation, heat pumps, and smart systems reduces lifecycle costs of public assets.
• Carbon impact: New capital projects can be designed as zero-carbon by default—reducing emissions for decades to come.
• Public engagement: Green public buildings are visible proof of progress, enhancing community support and user wellbeing.

“Every pound spent on clean infrastructure is a pound that pays back over time in reduced fuel bills and maintenance.”
— UK Infrastructure Bank

3. Planning Regulations for New Buildings

• RBWM: £2 billion | UK-wide: £164 billion

How to Achieve:

• Cost reduction: Zero-carbon buildings are cheaper to run, with higher market value and lower retrofit needs.
• Carbon impact: Local planning codes can require Passivhaus standards, solar integration, or biodiversity net gain.
• Public engagement: Public consultation on design standards invites residents to shape greener communities.

“Local planning is one of the most underused but powerful tools for climate delivery.”
— Centre for Cities

4. Pension Fund Investment Strategy

• RBWM: £4 billion | UK-wide: £400 billion

How to Achieve:

• Cost reduction: Green investments increasingly outperform fossil-linked assets and are less exposed to climate-related financial risk.
• Carbon impact: Divesting from high-emissions sectors and investing in clean energy, housing and infrastructure shifts the economy toward net zero.
• Public engagement: Responsible investment policies are widely supported by members and residents, especially younger generations.

“UK pension funds have a legal duty to consider climate risk. The financial case for climate-aligned portfolios is stronger than ever.”
— Local Authority Pension Fund Forum (LAPFF)

5. Direct Investment into Local Capital Projects

• RBWM: £200 million | UK-wide: £20 billion

How to Achieve:

• Cost reduction: Direct investment into renewable energy or efficiency projects returns long-term dividends for public finances.
• Carbon impact: Enables projects that cut emissions directly—solar farms, district heating, electric vehicle infrastructure.
• Public engagement: Investment into visible community infrastructure builds support and a sense of shared ownership.

“When local pension capital is invested locally, everyone wins: the community, the council, the fund, and the planet.”
— UK Green Finance Institute

6. Resident Purchasing Power

• RBWM: £3 billion | UK-wide: £1.6 trillion

How to Achieve:

• Cost reduction: Councils can coordinate bulk purchases of insulation, EVs, or solar panels—reducing prices for residents through economies of scale as well as generating commission revenue for the council
• Carbon impact: Household emissions fall when communities have access to affordable, greener options.
• Public engagement: Community engagement programmes, local green discount schemes, and climate bonds make residents active participants.

“Engagement isn’t a side issue—it’s central to building climate-ready places that reflect local values and needs.”
— Climate Outreach

7. Business Purchasing Power

• RBWM: £5 billion | UK-wide: £4.48 trillion

How to Achieve:

• Cost reduction: Shared green procurement frameworks reduce business costs and increase uptake of low-carbon alternatives as well as generating commission revenue for the council.
• Carbon impact: Councils can convene business alliances focused on shared net zero goals and carbon accounting tools.
• Public engagement: Green business certification schemes and local climate networks boost visibility and collaborative momentum and skill sets needed for the new economy

“Local authorities are well positioned to create place-based partnerships with businesses that accelerate the net-zero transition.”
— Confederation of British Industry (CBI)

Delivering the Next Step: A Climate Statutory Duty

To fully realise this opportunity, councils need a clear mandate and a supportive framework.

That’s why the Local Government Association is co-developing a Climate Statutory Duty—to be proposed to government this summer. This duty will give local authorities the confidence, clarity, and capacity to:

• Align all investment and regulatory decisions with net zero and resilience goals
• Remove outdated constraints in planning and procurement
• Access cheaper green finance and innovative delivery mechanisms
• Measure and report outcomes effectively
• Collaborate with experts, residents and business for smarter delivery

“A well-designed statutory duty won’t constrain—it will empower, accelerate and legitimise bold leadership at the local level.”
— Dr. Rebecca Willis, Lancaster University

A Call to Leadership

The road to net zero will be shaped by those who act boldly, collaborate widely, and invest wisely. Local authorities have already proven themselves as hubs of innovation and integrity. Now, by using the full scope of their economic power, they can lead the way again.

As a leader—elected or executive—your choices matter. They shape not just services, but futures. The opportunity is clear. The tools are available. The support is growing.

Now is the time to step forward—to explore, to shape, and to deliver a resilient and prosperous legacy for generations to come.

Cllr. Wisdom Da Costa

Wisdom’s LinkedIn profile indicates that he is an Accountant, Corporate Treasurer, Politician, Activist locally and with Climate Change. He has spent time as a Trustee of a number of different DB, DC and LGPS Funds and currently on the Commercial Advisory Board of the Local Government Association. He is a Councillor in Windsor at the Royal Borough of Windsor and Maidenhead.