Opinion Piece - Blog

Powering up our rural communities

This article originally appeared in The Municipal Journal.

Imagine living in a place which owned its own wind turbine. Where the village shop was owned and run by local people. Where a network of local social enterprises collaborated to bid for contracts from the public sector. Where all residents felt empowered to participate in developing an action plan for their community. Where the community owned the land their houses were built on, made sure new homes were affordable and were not sold as second homes. Is this a fantasy village? Possibly. But the fact is that rural places across the UK are already delivering all of these constituent parts. The next – and crucial – step is bringing them together.

The second of CLES’s Community Wealth Building Conversations, last week, focused on how the approach works in a rural context. One of the challenges frequently levelled at the community wealth building movement is that it is an urban-centric and -focused method of economic development. When the vast majority of the UK is rural, ensuring that community wealth building can be delivered across all our regions is important. We know that many of the more visible challenges facing urban communities – like poverty – can be masked in rural places. Not only this, but often the lack of rural infrastructure can compound poverty and exacerbate the challenges facing people in their places.
“opportunities […] can be present as well ”
Our panellists at the event – Neil McInroy, Global Lead for Community Wealth Building for The Democracy Collaborative, and Cllr Lisa Brown, Deputy Leader for Cumberland Council – opened the proceedings with provocations highlighting some of the challenges our rural places face. Transport, housing and service delivery all got a mention, but they also noted the opportunities that can be present as well – in energy, food and tackling issues like climate change. Ownership of land was also noted as a key theme as the inequality of who does and who doesn’t own the ground we stand on clearly demonstrates the extraction of wealth from our places.

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What’s on the table at the council of nations and regions?

This article originally appeared in Labour List

With Keir Starmer due to host his first “council of the nations and regions” later today, and with salary comparisons very firmly off the table, you can’t help but wonder, what will be up for discussion?

Starmer has made no bones about the centrality of mayors and devolved leaders to his programme for government, signalling his intent early doors by visiting them all within five days of being handed the keys of number 10. He’s also clearly set out a remit for the regions, in the form of Local Growth Plans, on which headline thinking is due to be submitted later this month. No doubt these Plans will be in sharp focus today, given that securing investment will be the main theme of the agenda.

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Building up from the local

This article originally appeared in the Municipal Journal.

As local government gears up for the annual budgeting process, there is still no certainty the new government in Westminster will be prepared to grasp the nettle on local authority finance. However, there is a huge opportunity to use investment in local government to help deliver Labour’s mission for growth.

Revaluing and restoring a strong and accountable local state will be essential if we are to ‘fix the foundations of Britain’s economy’.

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Islington: building equality and prosperity though learning

In this guest blog from Islington Council’s Assistant Director of Community Learning & Libraries, Akeel Ahmed, he explains why Islington have put adult skills and learning at the heart of their community wealth building approach.

“I needed a career change and had no confidence as I hadn’t applied for a job or done any learning since I was 16. They’ve really supported me and the courses are really practical. I start my new job next month”.

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5 ways for the government to keep the good in planning

This article originally appeared in the Local Government Chronicle.

Two months in, there is no doubt that Labour are committed to delivering on their manifesto promises to “rip up the rule book on planning”. The new government have placed planning reforms at the heart of their mission to drive growth, proposed a Planning and Infrastructure Bill in the King’s Speech and, barely two days after their landslide victory, announced a consultation on a new National Planning Policy Framework (NPPF).

When complete, the new NPPF will act as a guide for local planning authorities and developers by outlining the government’s planning policies and how they should be applied locally. And, even within the language of the consultation, we can read the runes on where the government places the blame for the lack of delivery on housebuilding and infrastructure projects in the UK. “Our antiquated planning system delays too many [development] projects, stymieing Britain’s ability to grow its way to prosperity”, it reads. But, in setting its sights on the system itself, is the government overlooking an important piece of the puzzle?

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Scottish policy and practice update: Sept 24

This update is part of a regular series of rundowns of policy developments and reports on our work in Scotland, by CLES Senior Researcher and Scotland lead, Naomi Mason.

The good, the bad and the opportunities

Last week was a busy one for policy and fiscal announcements in Scotland. Tuesday morning started positive, with the launch of Developing Scotland’s Economy: Increasing the role of inclusive and democratic business models, a report committed to in the National Strategy for Economic Transformation. But later that day the fiscal pre-budget announced budget cuts and difficult economic decisions around public spend, while Wednesday saw the launch of the 2024-25 Programme for Government (PfG). As the title of this blog indicates, the three announcements produced quite a mixed bag of policy and legislation and there was a lot for those of us concerned with the future economy of Scotland to digest over the weekend.
“Scotland could soon claim a world first”
Starting with the positive, we at CLES are delighted to see community wealth building legislation coming forward in the PfG. Scotland could soon claim a world first by delivering this ground-breaking legislation which supports a framework for economic development practices which challenges economic extraction and supports local economies to flourish. If this legislation can unlock opportunities for Scotland’s SMEs to bid for public sector contracts, as well as making it easier for those in the third sector to undertake them too, then the economic opportunity to encourage wealth to flow to our local places will become far easier.

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Planning for human welfare

This article originally appeared in the Municipal Journal.

Years ago I asked a planner what it would mean to develop a plan which prioritised human welfare. He responded by arguing that what his place really needed was some new humans because the humans they did have were too poor, too unqualified, too sick…which was why there were executive homes on greenfield sites, to “drive growth”.

I have been reminded of this conversation in recent weeks as planning reform has headlined Labour’s mission to boost economic growth. The current planning regime is being presented as a major brake on growth which needs reform in order to support the development of housing and infrastructure.
“cut it down to size”
But isn’t that what the Conservative government argued in their reform of the national planning policy framework back in 2011? Eric Pickles called planning a “drag anchor” to growth and promised to “cut it down to size”.  During the last fourteen years we’ve seen the ability of planners to negotiate social and economic outcomes including good design, affordability and infrastructure for communities systemically squeezed. At the same time the power of developers to get what they want has expanded – along with their profits.

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Is now the time to reconsider community wealth building?

This article originally appeared in the LGC.

As the first recess of this parliament draws near, there are glimmers of hope on the horizon for local government.

The new government seem bullish in their commitment to providing authorities with multi-year funding settlements and ending wasteful competitive bidding. Meanwhile a Bill proposed in last week’s Kings Speech will see more power devolved to the local level, albeit via combined authorities.

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What good devolution looks like

This article originally appeared in the Local Government Chronicle.

Levelling up, powering up, reducing regional disparity – whatever you want to call it, the question of how we build an economy that works for the whole country has troubled political parties and policy makers of all stripes for decades. Yet, despite the problem having relative consensus across Westminster and attempts to tackle it being central to more than one programme for government, no one yet has managed to make much of a dent in the huge gaps between the geographical haves and have nots of the UK. Even this week, research from the IFS identified that the UK “has gone into reverse” on many metrics since the release of the Levelling Up White Paper, calling on the next government to take decisive action to reverse “glacial” progress on the agenda.

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Recruitment needs a radical rethink

This article originally appeared in the Municipal Journal.

The Government kicked off its election campaign last week on the back of much rejoicing about the latest inflation figures. It is clear to see some politicians are pinning their hopes on lower inflation equating to higher votes.

But the sight of Westminster politicians crowing about the numbers while steadfastly ignoring the lived reality that many families are still struggling to afford basics such as food, energy and rent, reveals how disconnected our national politicians are from life on the ground in our places.

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“Fix the broken system”

This article originally appeared in the Municipal Journal.

At a time when both Westminster and the Scottish Government have U-turned on their climate commitments, local governments across the UK are plugging the gap in their efforts to tackle climate crisis. However, while localities recognise that climate action will be one of the critical factors shaping our places so that they are fit for the future, this work often goes under the radar, under-appreciated and under-funded.

Local authorities are taking action on climate because they know it’s the right thing for their places and not, as one officer put it, “because the government is allowing us to.”

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Putting the community in community wealth building 

Last week I had the honour of delivering the opening keynote presentation at the Third Sector Interface Scotland (TSI) Network conference. This was their first in person conference since before the onset of Covid-19, and the magnitude of the many challenges the third sector in Scotland has faced in recent years was never far from my mind throughout the day.  

The legacy of harsh austerity policies, a global pandemic and continued economic uncertainty (globally and closer to home as we have seen with the recent Scottish political upheaval) have all tested our communities’ resilience in ways we’ve never known before. But what was heartening to hear from delegates at the conference was how the third sector has continually risen to these various challenges. 
“a large and significant economic force”
At the height of the pandemic, the TSI Network was able to support the third sector as it responded, at pace, to the difficult conditions which were faced in our places. This raised the profile of the sector, with local groups, with their unique insights into local conditions, on hand to mobilise and deliver services where the public sector struggled to reach. Beyond the exceptional circumstances of the pandemic, recent research has shown the significant impact the third sector has on the Scottish economy overall, in terms of employment, volunteering and economic spend. With income generated totalling over £8.5bn per annum, the sector is a large and significant economic force in the Scottish economy.  

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Left and behind: women at work

This article originally appeared in the Municipal Journal.

In the run-up to the General Election, we will hear more about the need for a relentless focus on building a stronger economy in the UK – an economy that works for everyone. If we are really serious about a mission-based approach to our economy, we need to commit to building gender equality into our economic strategies, both at a combined and local authority level and with an appreciation of how gender intersects with other structural factors such as ethnicity, class, disability and age.

Recent research by the Centre for Local Economic Strategies (CLES) and the Women’s Budget Group (WBG) suggests the UK may be losing as much as £88.7bn every year from our economy due to the disadvantages women encounter in the labour market. This leads to under-employment and lower pay. It is the equivalent to the annual contribution of the UK’s financial services sector.

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Westminster fiddles while local government burns

As the Government prepares for its last Spring Budget before the upcoming general election, it’s easy to assume that all eyes are fixed on Westminster. The reality, however, is that the soldiers in the trenches of our local economies – politicians, officers and activists – are more concerned about their existential future, and are expecting little, if anything, from this Budget – writes CLES researcher, Tallulah Eyres.

Released last week, the LGiU’s annual state of local government finance report argues that the dire state of local government finances now goes well beyond business as usual. The balance has tipped, they say, and the report paints a desperate picture of councils grappling with insufficient funding to maintain essential services, with more than half of local government leaders warning that they now face bankruptcy in the next five years. Despite urgent warnings from the IMF to prioritise public spending, there is scant indication of any fundamental change forthcoming from Westminster.
“crumbs from the masters table”
Instead, the anticipated crumbs to fall from the masters table, including extensions of tax advantages for new Investment Zones and Freeports, are primarily focussed on using various fiscal incentives to attract investment. Admittedly, these place-based approaches are targeted towards disadvantaged communities but, as my colleague Sean Benstead uncovered in his research last year into Freeports, previous experiments with low tax and tariff zones have fallen short in addressing regional economic inequality or stimulating job creation. Instead, they risk extracting wealth and opportunity from hard-pressed communities by diluting workers’ rights, displacing businesses and facilitating tax evasion.

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Asset disposal shouldn’t be a fire sale

This article originally appeared on British Politics and Policy, part of LSE Blogs at the London School of Economics.

In late January reports emerged that Westminster is quietly pushing forward plans to loosen budget rules for councils, enabling them to sell off their assets in order to fund front-line services like adult social care, children’s safeguarding and waste collection. While, on the face of it, this looks to be a welcome gift for the many councils currently facing bankruptcy, this change in the rules is potentially fraught with risk.

The danger is that – desperate to raise cash – councils will enter a fire sale of their assets to the highest bidders, fuelling the extraction of wealth from land and assets with the potential to create public value. What needs to happen instead is for councils to be given the opportunity to pass on their assets in a manner that supports the local community and economy, while also raising necessary funds.

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