The report, called All day and all the night, says: 'The general perception before the study was undertaken was that the night-time economy was primarily driven by the leisure industry, particularly the sale and consumption of alcohol. This has indeed proved to be the case.
'Local authorities should, in particular, consider the regeneration potential of the night-time economy.'
But the negative image of drunken brawls in busy city centres should be viewed against the positive aspects of an economy which could be used to regenerate communities, according to the LGA.
Extra funds would need to be spent on street cleaning and dealing with noise complaints and councils are being urged to develop formal licensing policies.