SLIDE 1 An introduction to community wealth building
Tom Lloyd Goodwin- Associate Director
@tomlloydgoodwin @CLESthinkdo
SLIDE 2 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
SLIDE 3
Community Wealth Building - Theory
SLIDE 4
Our current economic model is failing
SLIDE 5
Our current economic model is failing
SLIDE 6
A new economic model is emerging
SLIDE 7
This is NOT the inclusive growth agenda
From an inclusive growth perspective, inclusion is about what happens socially to growth after we have growth
SLIDE 8
It’s an inclusive economy agenda
SLIDE 9 This is not just semantics
Inclusive Growth Inclusive Economy Economic model is fine, but need to connect more people to growth Economic model is flawed, as it creates unacceptable
- inequality. Should serve inclusive social goals
Marketisation and private values, can sit within and alongside public sector to advance inclusion Restoration of public values within public sector market, is a route to greater inclusion Extraction of wealth seen as inevitable but need to slow for inclusion Extracted wealth needs to be curbed and made more locally generative
SLIDE 10
The power of anchor institutions
SLIDE 11
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
SLIDE 12 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)
SLIDE 13
- 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)
New forms of financial power
SLIDE 14 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)
SLIDE 15
- 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)
Fair employment and just labour markets
SLIDE 16 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.
SLIDE 17
Manchester – a 12 year journey
SLIDE 18 Manchester: an 11 year journey
71.7% 16/17 17/18 71.3% 73.6% 68.8% 61.9% 65.7% 54.0% 53.9% 51.5% 15/16 14/15 13/14 12/13 11/12 10/11 08/09
SLIDE 19 Manchester: an 11 year journey
1,788 opportunities
Suppliers to Manchester City Council created an estimated 1,788 employment
- pportunities for ‘hard to
reach’ individuals in Greater Manchester in 2017/18.
1,302 jobs
Suppliers to Manchester City Council created an estimated 1,302 jobs in Manchester in 2017/18.
665 apprenticeships
Suppliers to Manchester City Council created an estimated 665 apprenticeships in Manchester in 2017/18.
158,591 hours support
Suppliers to Manchester City Council provided an estimated 158,591 hours of support to the voluntary and community sector in 2017/18.
SLIDE 20
Preston – developing an anchor approach
SLIDE 21
Preston – developing an anchor approach
SLIDE 22 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
SLIDE 23 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
SLIDE 24
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!
SLIDE 25 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
SLIDE 26 Get in touch
0161 236 7036 tomlloydgoodwin@cles.org.uk jontyleibowitz@cles.org.uk @CLESthinkdo @tomlloydgoodwin @JontyLeibowitz www.cles.org.uk
