an introduction to community wealth building · extracted wealth needs to be curbed and made more...

An introduction tocommunity 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 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

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)

• 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

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)

• 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

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

71.7%

16/17 17/18

71.3%73.6%

68.8%

61.9%

65.7%

54.0%53.9%51.5%

15/1614/1513/1412/1311/1210/1108/09

Manchester: an 11 year journey

1,788 opportunities

Suppliers to Manchester City Council created an estimated 1,788 employment opportunities 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.

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 andwealth 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.ukjontyleibowitz@cles.org.uk

@CLESthinkdo@tomlloydgoodwin@JontyLeibowitz

www.cles.org.uk