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.
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.
An interview from Neil McInroy’s recent trip to Barcelona
Does the modern industrial strategy published this week offer the radical departure our economy requires? While the Centre for Local Economic Strategies (Cles) welcomes the first industrial strategy to be published in more than a generation, we are concerned it will do little to fundamentally alter the fortunes of the people and places that have been ravaged by each wave of industrial restructuring since the late 1970s.
This CLES Bulletin details CLES’ thoughts on the 2016 Budget.
A think-tank has urged councils to use new devolved powers from Westminster to help tackle poverty and inequality.
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.
Cleveland, Ohio has faced significant challenges over the last 20 years. The crash of the manufacturing industries in the 1990s led to a reduction in the number of jobs to the sum of some 150,000. This had associated consequences for the local population, which reduced from around 800,000 to 400,000 as people headed elsewhere seeking opportunity. It also had consequences for the physical and social feel of Cleveland: there is a myriad of vacant and derelict property and, for those remaining, high levels of unemployment and limited opportunity. The downtown area became a ghostly area embroiled in economic decline.