An introduction to community wealth building Tom Lloyd Goodwin- Associate Director @tomlloydgoodwin @CLESthinkdo
About CLES • The national organisation for local economies • Progressive economics for people, planet and place • Thinking and doing , to achieve social justice and effective public services
Community Wealth Building - Theory
Our current economic model is failing
Our current economic model is failing
A new economic model is emerging
This is NOT the inclusive growth agenda From an inclusive growth perspective, inclusion is about what happens socially to growth after we have growth
It’s an inclusive economy agenda
This is not just semantics Inclusive Growth Inclusive Economy Economic model is fine, but need to connect more Economic model is flawed, as it creates unacceptable people to growth inequality. Should serve inclusive social goals Marketisation and private values, can sit within and Restoration of public values within public sector alongside public sector to advance inclusion market, is a route to greater inclusion Extraction of wealth seen as inevitable but need to Extracted wealth needs to be curbed and made more slow for inclusion locally generative
The power of anchor institutions
Community wealth building: theory 1. Plural ownership of the economy 2. Making financial power work for local places 3. Fair employment and just labour markets 4. Anchor purchasing 5. Socially productive use of land and property
Plural and democratic ownership of economy • Municipal ownership (Hackney Light and Power) • Cooperative development (Tech coop: Islington, workers coops around social care: Colne Valley) • Conversion local small business to workers coops ( North Ayrshire) • Insourcing (Liverpool)
New forms of financial power • Community banks (Lancashire, Wales) • Using more pension funds for local investment (Preston and Islington Council Pension Fund) • Credit Unions (Many UK Councils) • Alternative currencies (care coins)
Socially productive use of land and property • Housing (Newham) • Municipally owned development vehicles ( Sunderland ended partnership with private sector) • Using land to build affordable housing & support local community (NHS) • Hardwiring social justice into planning frameworks (Islington)
Fair employment and just labour markets • Development of local labour markets to grow workforce from poorer areas, underserved sections of population (Councils and hospital trusts across England) • Living wage places ( Dundee & Sunderland ) • Progression in work ( Council and hospital trusts )
Anchor Purchasing • Hundreds of municipalities now have progressive purchasing plans and policies. • Intention to maximise social value. • We now seeing a much more progressive approach to commission with some areas looking to maximise social, economic and environmental impact in the design of services.
Manchester – a 12 year journey
Manchester: an 11 year journey 73.6% 71.7% 71.3% 68.8% 65.7% 61.9% 51.5% 54.0% 53.9% 08/09 11/12 16/17 17/18 10/11 12/13 13/14 14/15 15/16
Manchester: an 11 year journey 665 apprenticeships 1,788 opportunities 158,591 hours support 1,302 jobs Suppliers to Manchester City Suppliers to Manchester City Suppliers to Manchester City Suppliers to Manchester City Council created an estimated Council created an estimated Council provided an estimated Council created an estimated 665 apprenticeships in 1,788 employment 158,591 hours of support to the 1,302 jobs in Manchester in opportunities for ‘hard to Manchester in 2017/18. 2017/18. voluntary and community reach’ individuals in Greater sector in 2017/18. Manchester in 2017/18.
Preston – developing an anchor approach
Preston – developing an anchor approach
Preston – developing an anchor approach Increased total spend by anchors • £70m more for city economy • £200m more for regional economy • Created 1600 more jobs • 4000 more people being paid the real living wage • Food co-op and tech co-ops supported by anchors • Using local pension funds to invest in local area • Local at municipal energy • Preston has moved up deprivation index • Most improved place to live in UK •
Newham – CWB in a high growth area New Mayor committed to CWB • Appointed CWB Director • Exploring social value weighting • Borough-wide approach to coop development • Red Door Ventures- municipally owned • housing vehicle
Other CWB initiatives Baltimore Mayor setting up vehicle to buy up companies and convert them into worker-owned cooperatives. Berlin Referendum on banning big landlords and nationalising private rented housing. Fearless Cities Network Taking back the city and reclaiming it as the commons!
Barcelona’s new municipalism Barcelona en Comú coalition took power in 2015, • City Mayor Ada Colau. Reclaim the city for local people from tourism and • wealth extraction Enhance role of ‘the commons’ • • Remunicipalisation of assets- e.g. water • Procurement of energy providers • Super blocks
Get in touch 0161 236 7036 tomlloydgoodwin@cles.org.uk jontyleibowitz@cles.org.uk @CLESthinkdo @tomlloydgoodwin @JontyLeibowitz www.cles.org.uk
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