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A true Living Wage – 5 reasons it’s needed

The new real Living Wage was announced this week as part of the Living Wage Foundation’s ‘Living Wage Week’ and reveals the work still needed to ensure employees and families are paid what they need to live. As part of CLES’ belief in progressive economics for people and place, CLES has contributed to the Greater Manchester Living Wage Campaign and our work around community wealth building through anchors has supported the proliferation of the Living Wage.

There has been progress in this agenda, but there is work to do to ensure that everyone is paid a fair wage for a fair day’s work. It is not enough to view job creation as success, we need good employment, which is secure, paid fairly, and provides opportunities for progression. This blog highlights why the advancement of a true Living Wage is important.

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We need a new social contract. A local one

A lot has changed since the post-war founding of the welfare state, and the social contract that went with it is eroding. Austerity has undoubtedly changed things, and so has devolution. CLES CEO, Neil McInroy argues that to build social justice, we need a new social contract: and that this includes one that is local to place and community; one that balances the strengths of the private, public and social sectors; one in which we make sure businesses do their bit.

Devolution is an opportunity yet to be fully realised. Devolution to some areas of England has been broadly focused on local economic growth and managing austerity through public sector reform. But with more power to local areas and the advent of Metro Mayors there is potential to forge a new relationship between business, the local state, social sector and citizens—a new local social contract.

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A progressive post-Brexit economic development

As we move towards Brexit, there are three possible paths for local economic development, says Neil McInroy.

For many years the dominant approach has failed to build a local economy for all. Brexit makes the challenge harder and we need to take a huge step up.

Under the auspices of devolution, mainstream economic development has followed traditional lines around investment in hard infrastructure, civic boosterism, city centres, planning relaxation and post-19 skills. Overall it has slotted into and complied with the Treasury economic model – favouring agglomeration economics and narrow wealth concentration. As a result, mainstream economic development has been socially failing, and presided over growing economic imbalances.

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Solving poverty: the promise of inclusive growth?

In her conference speech, Theresa May committed her government to achieving ‘an economy that works for everyone’. In this, she is touching on a point that many of us have known, and sought to respond to, for decades – that poverty and inequality persist, that this is unacceptable and that the prevailing economic model leaves too many people behind. The question is, how far is the government prepared to go in solving systemic poverty and inequality?

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  • Bringing community wealth to Birmingham

    28 Sep. 2016

    • We need a real devolution deal

    Devolution is a great opportunity. After years of oppressive centralisation, devolution deals offer local and combined authorities a chance to break free and forge their own distinctive economic and social destiny. Devolution is not, however, without significant risks and challenges. Our new joint paper ‘The Real Deal: Pushing the parameters of devolution deals’, a collaboration between the Centre for Local Economic Strategies (CLES) and the Sheffield Political Economy Research Institute (SPERI), explores the restrictions in the current devolution agenda, and presents ideas for new types of deals, heralding a more progressive devolution.

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    Five ways to bring money and investment into your local area

    Crowdfunding isn’t the only way to get projects off the ground. There are other ways to encourage investment. With government grants disappearing and banks more reluctant to fund small businesses, local communities are seeking new ways to find investment.

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    Local government needs to address low pay

    The UK is in the midst of a low pay crisis. Over 5 million people do not earn a wage which is sufficient to afford them a ‘decent’ quality of life. Wages across a raft of sectors are not rising in line with the cost of living and particularly costs associated with housing, fuel and food.

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