How Preston City Council is managing its finances has won praise from Labour’s shadow chancellor. John McDonnell MP said initiatives being run by the city council to drive up local spending and working with the local Chamber of Commerce were a ‘new economics’.
I have spent the last three weeks in Cleveland, Pittsburgh, Philadelphia and Providence exploring how those cities have responded to economic decline and indeed economic opportunity. I have been fascinated by the levels of collaboration, the role of anchor institutions, the scale of foundation resource, and the ability to raise and redistribute taxation as means of enabling that response. While I have seen lots of good work in those localities, I have also been amazed by the scale of the remaining challenge, particularly in terms of addressing inequality.
Public sector organisations like councils and colleges can do much to work with suppliers on their doorstep and stimulate local economies. In Lancashire work is underway to ‘repatriate’ spending. Anchor institutions are crucial components of our towns and cities. Commonly including local authorities, further and higher education providers, and housing organisations, they are key employers and procurers, embedded in their communities and unlikely to leave. In a UK context, the potential of anchor institutions to contribute to wider local economic development has been untapped – until now.
Many local places face significant challenges. On the one hand, sluggish or no growth, coupled to rising inequality and poverty is placing significant pressure on public services. On the other, austerity and cuts to local government and public services are reducing the ability by which the public sector can act. There is a lot of commentary about the causes of inequality and poverty but a lack of real action.
Ted Howard, founder of the Evergreen Co-operative Initiative, told us what we could want, in a fabulous CLES, NewStart, Co-operativesUK and Hub Westminster event I chaired last night. For me the question he posed is so relevant to the task of regenerating failing places in the UK. The places which have received endless regeneration monies, have lost their economic purpose, and are searching for a new and vibrant future.
