Anchor Institutions

Let’s democratise the insourcing revolution!

CLES welcomes the publication of the Labour Party’s report, Democratising Local Public Services. Its bold plan for a 21st century insourcing offers a powerful corrective to the last four decades of outsourcing, commercialisation and, more recently, unprecedented austerity. It appeals to all who have been working to combat the hollowing out, privatisation and undermining of our public services.

However, there are some changes in emphasis and direction required. CLES agrees that insourcing of local public services should be the default position, and that far too much outsourcing is delivered by those who seek profit and extract wealth at the expense of the public service. Nevertheless, we should be building a resurgence of a public service movement and offer a hand to the many organisations and individuals who, whilst not directly part of local government, are equally passionate about public values, public services and are at the forefront of a movement to develop new forms of democratic and citizen involvement. Democratic institutions such as cooperatives, and participatory democratic forms such as community businesses and social enterprises, offer different ways of realising social, economic and environmental value. These organisations are far removed from the rapacious greed of large outsourcers and as such should have some role in the democratisation, delivery and part ownership of service production.
“We should be building a resurgence of a public service movement and offer a hand to the many organisations and individuals who, whilst not directly part of local government, are equally passionate about public values, public services and are at the forefront of a movement to develop new forms of democratic and citizen involvement.”
So, whilst Labour’s paper provides an excellent correction to years of marketisation and privatisation, a deepening democratic and social revolution for our public services cannot solely begin and end at the town hall. Clearly, back door outsourcing – where small alternative forms of delivery are eventually acquired and gobbled up by big private outsourcers – must be guarded against. However, the democratisation of our local public services must make provision to include, where appropriate, other socially just forms of delivery. Consequently, the debate here is not solely public sector insourcing versus private sector outsourcing.

Celebrating eight years of community wealth building in Preston

Much has been said about the so-called “Preston model” – a new economic approach developed by the City Council, against the grain of much conventional thinking on economic development. In eight years, Preston has shown that a different model is possible. The deep, practice-focused work now stands as proof that community wealth building can drive real change.

That is why we’re proud to today be releasing How we built community wealth in Preston; achievements and lessons. This publication, jointly produced by CLES and Preston City Council, is the definitive telling of the story and the theory behind the ‘Preston model’, written by two organisations who have led on this work from the very beginning.

How can health care organisations maximise their resources to improve population health? 

The Five Year Forward View and evolution towards integrated care systems have placed greater expectations on the NHS to work across a geographical area and maximise its resources to improve the health of a local population. And while this focus on place-based systems of care has spurred developments in the way services are designed and delivered to help prevent ill health and promote wellbeing, limited attention has been given to how the NHS can influence the economic conditions that help create health in the first place.

The impact the NHS has on people’s health extends well beyond its role as a provider of treatment and care. As large employers, purchasers, and capital asset holders, health care organisations are well positioned to use their spending power and resources to address the adverse social, economic and environmental factors that widen inequalities and contribute to poor health.

Realising the potential for community business and anchor institutions

Community businesses are key drivers of the local economy and a growing aspect of Local Wealth Building. They are a key means of ensuring that wealth is more readily held, used and benefits local people and communities.

Vital to this is the extent to which community businesses are woven into the supply chains of anchor institutions. Work by CLES in three locations has found that community businesses are building local wealth and it is now time to celebrate, secure and amplify their full potential within the supply chain of anchor institutions.

  • RESEARCH

    Community Business and Anchor Institutions

    28th February 2019
    This research funded by Power to Change looks at how community businesses and anchor institutions can better work together to evol...
  • What next for the Local Wealth Building movement?

    Local wealth building has emerged as a powerful tool to democratise our economy and create wealth for all. From Barcelona and Bologna to Preston, Islington, and Kirklees, the movement is growing and helping communities take back control. Jonty Leibowitz and Tom Lloyd Goodwin suggest that whilst now is a good time to recognise and celebrate these achievements, we must also be restless and ambitious, asking ourselves – ‘what next’ for this dynamic movement?

    It is no surprise that local wealth building has begun to gain traction in the last decade. Across the world, communities are beginning to fight back against a political and economic system in which wealth is hoarded by a narrow few, public services are cut to the bone, and the many are consigned to lives of economic precarity and political disenchantment.

  • Gaps in the Greater Manchester Strategy

    The new Greater Manchester Strategy ‘Our People, Our Place’ was launched last week with ten new priorities announced to make Greater Manchester one of the best places in the world to grow up, get on and grow old. With a compelling focus on people – described by Mayor Andy Burnham as Greater Manchester’s ‘greatest asset’ – and some whispers of alternative economics, the Strategy shows a marked shift towards new priorities for GM. However, its strength will be in its delivery, and there are some gaps that could be addressed to go further towards achieving the goals set out in the strategy.

    People and Place

    Collaboration between the public, private and voluntary, community and social enterprise (VCSE) sectors to deliver place based growth which benefits local people is at the forefront of the new strategy; certainly in rhetoric terms.

    8 ways to enhance the role of housing providers

    Housing providers have a significant role to play in the functioning of the economies in which they are based and in addressing social issues. They achieve this through the delivery of activities which complement and supplement public services and contribute to a variety of outcomes including around employment, and health and well-being.

    Like other place based anchor institutions, housing providers also have a key lever for economic, social and environmental change at their disposal in the form of procurement. All housing organisations will purchase goods, services and works and will have a process in place to design, procure and deliver these. However, the challenge with procurement historically is that it has often been overly bureaucratic, with price the primary decision-making criteria; and little opportunity to utilise procurement to address wider issues.

  • Whatever happened to economic development?

    Budget day for the Centre for Local Economic Strategies (CLES) used to be one of intrigue and relative excitement. In the 2000s, the Budget was supplemented by a specific annex focused on economic development and regeneration. Indeed, the Budget was where we saw exciting new renewal initiatives announced; reviews of sub-national economic development formulated; and new duties and funding initiated.

    Inclusive growth: Making an economy work for a few more?

    The report from the RSA inclusive Growth Commission has now been launched – ‘Making our economy work for everyone’. Chaired by Stephanie Flanders, of JP Morgan Asset Management, this work sought to identify practical ways to make local economies across the UK more economically inclusive and prosperous. However, it is arguable that the ideas are limited in terms of wider social justice and economic resilience. Instead of making an economy work for everyone, it’s more likely that it will merely make our economy work for just a few more.

    For many years, economic development has been a thin gruel for social inclusion; based overly on economic growth (sometimes at all costs), trickle down and spatial agglomeration. So, it is heartening that the commission seems to have partly picked up on the ideas of CLES and others (you can read our RSA submission here). This includes the understanding (if not a truism) that investment in social institutions and people is as important as investment in economic infrastructure; or, how the spheres of the economic and the social are not separate, but linked. They also highlight the excellent practical work CLES are engaged in: Community Wealth Building and Anchor Institutions.