By adapting their procurement processes and decision making, anchor institutions can create dense local supply chains and ecosystems of local enterprises, SMEs, employee owned businesses, social enterprises, cooperatives and other forms of community ownership.
This is important because these types of businesses are more likely to support local employment and have a greater tendency to recirculate wealth and surplus locally, helping to reduce carbon footprint.
Case Study: Preston
Preston’s efforts to localise the impact of collective spending amongst the city’s anchor institutions has brought millions of pounds back into the local economy. The recirculation of over £200m being spent with local suppliers as a result of the changes in procurement behaviour across anchor institutions has had a positive multiplier effect on local jobs, health and wellbeing. This is partially reflected by the fact that in 2018 Preston was named the ‘Most Improved City in the UK’.