Latvia's largest business association, the Latvian Chamber of Commerce and Industry (LTRK), points out that local governments play a significant role in business development and in fostering economic growth, and so businesses across all regions expect local election candidates to provide support and effective solutions that would help create a favourable environment for companies to grow and for new investment to be attracted.

Local government decisions in a range of areas have a direct impact on the business environment. It is within local authorities' power to create the preconditions for existing companies to develop, for the workforce not to drain away but, on the contrary, to grow, and for residents to be motivated to set up new businesses. Businesses therefore expect local election candidates and winners to have a clear, targeted and effective plan and course of action to promote economic growth and create favourable conditions for business.

One of the most important aspects is a tax policy that provides an incentive for business development – businesses propose that part of personal income tax be channelled not only to the local authority where a person lives but also to the one where they work, and that a share of corporate income tax go to the local authority in which the company operates. A results-oriented local government financial equalisation system is likewise needed in order to encourage competition and attract business. A support policy for local companies also matters – barriers to doing business must be removed, regular monitoring of progress must be ensured, and businesses must be involved in decision-making processes so that their recommendations are actually implemented.

Security matters are an inseparable part of economic stability, and so businesses expect improvements to infrastructure security, continuity of critical services and closer cooperation between local governments and national security institutions. Better communication with the public is also needed, informing people about the measures local authorities have taken to improve security and provide protection in an emergency. Cooperation between local governments is likewise an important factor, both for developing the business environment and for addressing security matters.

Attracting investment and exports are essential factors in a local authority's development – public–private partnership projects need to be promoted, as does strengthening the export capacity of municipal companies. Businesses also stress the importance of competitive neutrality, so that a local authority's own commercial activity does not distort fair competition and so that private companies are engaged in the delivery of services.

Reducing the administrative burden at local government level is also an important issue – businesses want simpler access to local authority services and an end to ineffective spending, so that resources are used to resolve problems in the local business environment. This is also linked to the availability of a qualified workforce, which is a serious problem in every region – local authorities must ensure an affordable housing stock and other services that matter to residents, which would help attract and retain workers in the local market.

LTRK Chair of the Board Jānis Endziņš: “The main ‘key’ to rising prosperity for the people of Latvia is an excellent business environment. It will produce more successful companies in Latvia and thereby generate income for residents, the state and local government alike. In this respect a very significant role is played not only by the state but also by the rules local authorities set and, even more so, by what local authorities do in practice. We at LTRK call for programmes and teams of politicians to be built that are capable of achieving this goal.”