Anchoring community wealth

Preston’s skyline: Carl Ji, a Chinese student, at the University of Central Lancashire

Austerity has been devolved to local councils and, perversely, areas with higher levels of poverty have been hit hardest, councils have on average faced 40% cuts in their budgets.

In the face of adversity councils such as Preston have responded by bringing together anchor institutions and working with them to drive through a local programme of economic transformation. The government’s Commission for Employment and Skills defines an ‘anchor institution’ as “one that, alongside its main function, plays a significant and recognised role in a locality by making a strategic contribution to the local economy” and ‘tending’ to be non-profit.

By changing their procurement policies, these anchor institutions were able to drive up spending locally protecting businesses and jobs. They are looking at the council pension fund to see if its investment can support local businesses keeping the money circulating in their town.

A study by the Centre for Local Economic Strategies found that six of the anchor institutions in the area are now spending 18% of their budget in Preston, up from 5% in 2013. So an extra £75 million a year is being spent within the city, with the top 300 local suppliers creating an extra 800 jobs last year alone. And others are watching: Manchester city council has now increased its local spend from 44% of its budget to 70%; Lowestoft and Salford are also interested.

Last year this blog reported that Birmingham City Council was to work with Centre for Local Economic Strategies, with funding from the Barrow Cadbury Trust and support from Localise West Midlands, to see how anchor institutions in the non-profit and private sectors, including Birmingham University, Pioneer Housing and the QE hospital, could use their spending power to increase economic opportunities for Birmingham’s communities, businesses and citizens. Read more on the council website here.

In a separate project, Localise West Midlands has been working with the Midland Metropolitan Hospital (under construction, artist’s impression) which will be the closest adult hospital to the centre of Birmingham. The Sandwell & West Birmingham NHS Trust and LWM are partners in Urban Innovative Actions supporting the development of the local economy. The Trust hopes to spend 2% of the new hospital’s annual budget with local suppliers, adding £5-8m to the local economy. It will provide locally sourced meals and the builder has a target of 70% local employment, aiming to source 80% of construction materials locally.

Alice Thomson in The Times pointed out that making a legal requirement that councils buy and hire goods and services locally is banned by EU law at the moment, so it should be noted that the Preston project operates on a voluntary basis.

She commented: “The government should take the idea and encourage it, particularly in hollowed-out market towns where out of town shopping centres have crushed their sense of identity” adding “But (procurement policies) could also be used for more high-profile programmes such as the rebuilding of Big Ben, where the steel has had to come from Brazil, Germany and the United Arab Emirates, or the V&A which showcases Britain’s greatest designs but where the tiles for the new forecourt came from Holland”.

 

 

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The West Midlands Forum for Growth? Well if I were you I wouldn’t start from here.

I attended the West Midlands Forum for Growth yesterday at Resorts World. It was the official conference of the West Midlands Combined Authority, and I was attending on one of two free tickets given to civil society bodies, as part of the group of civil society organisations aiming to have a voice in combined authority matters. Tickets in general cost somewhere in the low hundreds of pounds.

In Andy Street’s keynote address, he told us the WMCA would be judged on its performance on two issues: growth, and public services and the lives of citizens. He said that although we were performing well on the first, we were not delivering well on the second. He said that there was no purpose in economic growth[i] if does not deliver the improvements in the lives of citizens.

This was a really important and honest admission for our mayor to make, at the start of an event that harnessed one day’s worth of the thinking power of hundreds of people in positions of significant power and with years of experience. It should have been the start of a challenging and free-thinking discussion about how we would make sure this happened.

There was a general sense of positivity in the room – that the West Midlands authorities were now seriously collaborating and that the devolution deal, land use and investment policies being followed were going to lead to opportunities. I didn’t really share that sense: I was thinking about Andy’s statement and wanting to discuss how we could address this need and make the West Midlands’ agenda deliver prosperity that was shared fully across its people with public services that met their needs.

But that discussion did not happen. There was nothing really different or challenging. The solutions are to have the biggest site, the fastest train, the tallest building, the greatest growth – the illusory trickle down of machoeconomics.

What about exploring the inclusive prosperity potential to be gained from enabling small development on small sites, not just big development on big sites? What about increasing local ownership? Fostering local supply chains? Raising the lowest wages? A focus, as with our social care report with New Economics Foundation, on the ‘foundational economy’, of providing the things that we all need such as food, energy, care, education?

A discussion on ‘liveability’ towards the end covered many of the right things about wellbeing but didn’t really address how the growth agenda should achieve them. It was more as if liveability was something you did in order to create more growth, not something that growth needed to achieve.

Belatedly, I started to realise what this event was really for. The vast majority of attendance, alongside public sector people, were in roles relating to development: (architects, developers, project management). There was little input from voluntary sector or small business, let alone of course from active citizens. There was none of the cross-sector debate about how policy can make a real difference, as there was at regional conferences of the early noughties[ii]. I assume that all those present had an interest in being enthusiastic about the agenda in order to facilitate access to new developments in whatever capacity they were operating. While they might have cared about it, their role and expertise was not to help deliver policy, investment and practice that meet those public needs.

This, I guess, is fine. There probably SHOULD be an event (probably in a car-centric and unsustainable consumer-orientated venue[i], probably for a prohibitive fee) that brings such people together to create a positive buzz around the devolution agenda and to network about the business opportunities that will result.

But should that event be the official Combined Authority conference? Given the Combined Authority’s remit that Andy laid out, does its real conference need to bring in a wider range of perspectives, some experts in public services and local economics, in a vastly more participative format (I counted 4 questions from the audience in 6 hours) and perhaps not charge them £300 for doing so?

We’d be happy to support such a WMCA conference in 2018.

Karen Leach

[i] I cycled there and back. Alongside the asphyxiating fumes, the only way out as a cyclist was take the third exit off the M42/A45 roundabout in three lanes of motorway-hungry traffic. I am sure I lost one of my nine lives.

[i] Yes, we are aware of the the grim realities of the impacts of such growth on our future on a finite planet. Having gone many steps backward since the not-ideal era of Regional Development Agencies, we’re currently aeons from being able to debate this. Instead, we hope to enable policymakers to see that other objectives and measures are more critical, and that this will reduce the focus on, and eventually the impact of, such growth. We know that this won’t be in time to stop dangerous levels of climate change or the depletion of finite resources, but we have to start somewhere.

[ii] And no, I never thought I would be highlighting those as pinnacles of sustainability and social inclusion.

Doncaster leads on local sourcing

As local sourcing where appropriate is central to relocalising and strengthening regional economies, many will welcome news of a pledge made by Doncaster’s Mayor Ros Jones to ‘buy local’.

mayor ros jonesBusiness Desk reports that when Ros Jones became Mayor in 2013, the council spent more money with firms located outside of borough, but now the vast majority of work goes to local firms, supporting the local economy and helping to stimulate jobs and growth.

Mayor Jones said: “I was determined Doncaster firms could bid for suitable contracts and by understanding what is involved in the procurement process have every opportunity to win work. We have put on workshops, organised events and provided support for business owners so they understand the rules, can find available contracts and know how to prepare their tender bids. This work is certainly paying off with amount of work being won by local firms increasing by a staggering 34% in the last four years”.

Doncaster Council’s procurement team has trained about 130 businesses on how to do business with the public sector and procurement rules have been changed to include local suppliers.

Working with the Business Doncaster team, supplier engagement events have enabled firms to meet public sector buyers, while other public sector agencies in Doncaster have also been encouraged to ‘buy local’.

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doncaster chamber logo

Dan Fell, the innovative chief executive of Doncaster Chamber, added: “Doncaster Chamber believes that it is important for local organisations in the public and private sectors to do business with each other to generate new supply chains and keep work local where possible.  For many years the Chamber has encouraged partners to ‘Buy Doncaster’ and, as such, is delighted that Doncaster Council has such a high percentage of its good and services locally.”

Because of Mayor Ros Jones’ pledge to ‘buy local’ – and despite reduced council budgets – the amount of work awarded to firms in the borough increased by over £27m since 2013/14 and now represents 68% of all council spend. In  2016/17, Doncaster based companies are projected to win over £108m of council work.

birmingham pound header

Endnote: see news of the Birmingham Pound which encourages sourcing of local goods and services: https://brumpound.wordpress.com/

 

 

 

The global economy undermines our most universal aspirations — clean air, clean water, a stable climate, happiness”

 

Localise West Midlands is a member of the International Alliance for Localization together with individuals, groups, NGOs, trade unions and local businesses from 58 different countries, showing the broad interest in localization worldwide. More than 70 member groups are working on issues ranging from social and environmental justice to sustainable farming, from workers’ rights to indigenous knowledge, from holistic education to policy change and beyond.

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A recent update from the International Alliance for Localization, in addition to giving news of its activities in different parts of the world, says that in line with its education for action mission, it is branching out into a new medium of communication: animation. A simple two-minute animated film summarizes the global-to-local vision in less than 5 minutes, it presents the case for a 180-degree turn from global to local, engaging those who are familiar with the message as much as newcomers.

Going Local: the solution multiplier spells out the essence of what’s wrong with the global economy and the multiple benefits of localisation.

IAL2 animationUsing whimsical drawings and narration, the film emphasizes how the global economy undermines our most universal of aspirations — clean air, clean water, a stable climate, happiness — and illustrates the key ways in which localization can turn things around. One comment: “People really seem to like it and it’s a message that will inevitably win the day — it’s just a question of when”

Anja Lyngbaek, IAL’s Associate Programs Director writes:

“The purpose of the IAL is to serve as an information- and strategy-sharing network for the many groups and individuals around the world working on a global-to-local shift, and to provide the localization movement with a clear and powerful collective voice.

“Localization is not yet widely recognized as a systemic strategy for change. The IAL is a step towards addressing this . . . Through the IAL, we share information about inspiring localization initiatives and strategies, and about campaigns to resist the corporate growth economy. Our Global-to-Local Webinar Series, free for IAL members, addresses key issues on a monthly basis, while our Planet Local series regularly showcases inspiring initiatives, many of them part of the IAL network.

“But a  multitude of localization initiatives are already underway worldwide, from local food and community-owned renewable energy projects to local businesses alliances. These initiatives are resulting in multiple benefits: lower carbon footprints; healthier food; more dignified livelihoods; closer community ties, and more”.

 

 

 

The FT and IFIs recognise the passing of globalisation

In a Political Concern blog, Mario Draghi, president of the European Central Bank, Christine Lagarde, managing director of the International Monetary Fund, and Donald Tusk, president of the European Council, have all decried a system they claimed had neglected the security of its weakest members.

izabella-kaminskaEarlier this month Izabella Kaminska referred to UBS’ ‘big note’ reviewing the passing of globalisation. She comments that labour costs go up in emerging markets — and as western consumers become more conscious of what constitutes fair and unfair trade — we should not really be surprised that global supply chains are shrinking, and that:

“Shipping stuff half way across the world simply doesn’t make half as much sense if the pay-off from cheap labour or favourable currency effects doesn’t compensate for the shipping costs (or increasingly, the carbon footprint either)”. The downturn in global trade was detailed on this site in July

china trade graphic

Longer and more complicated supply chains require a far more complex and extended route to market — including far more expenditure on transport and energy — than they would require if they were sourced more locally.

UBS notes that global value chains have become shorter as some countries have on-shored (or reshored) production because bringing production closer to home often serves end customers better and there are now higher unit labour costs in Asia. (See the work of Professor David Bailey and references on the WM Producers website).

guy-standingAnd today the FT reviews a book by Guy Standing, a professor at the University of London’s School of Oriental and African Studies: The Corruption of Capitalism.

It notes that many of the author’s ideas for fixing the system — such as a universal basic income, where all citizens receive regular payments from the state whether or not they work — are receiving more attention from the mainstream.

 

Political Concern asks:Is localisation also part of the answer?”

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Its recommendation: “Search the Localise West Midlands site – and especially see the work on Mainstreaming Community Economic Development”.

 

 

 

 

 

Corbyn focusses on decentralisation: localising energy and transport

corbyn-eee-manifestoJeremy Corbyn has launched an environmental manifesto that outlines plans for the UK to achieve 65% of energy from renewable sources by 2030 – without fracking.

Corbyn proposes to put cities, councils, devolved governments and communities at the heart of an efficient, decentralised energy system by promoting a shift to electric and hydrogen buses and cars; a network of low-emission zones and cycling with safe cycle lanes and hire schemes in every town and city.

The manifesto places social enterprises, including not-for-profits and co-ops at the heart of Corbyn’s plans for a “publicly run, locally accountable energy system”.

A “publicly run, locally accountable energy system”.

In a speech in Nottingham, the Labour leader said, “We want Britain to be the world’s leading producer of renewable technology. To achieve this, we will accelerate the transition to a low-carbon economy, and drive the expansion of the green industries and jobs of the future, using our National Investment Bank to invest in public and community-owned renewable energy. This will deliver clean energy and curb energy bill rises for households; an energy policy for the 60 million, not the Big 6 energy companies.”

He has promised to promote over a thousand local energy companies in the next parliament and legislate to give community energy co-operatives the right to sell energy directly to the communities they serve.

Housing

It would launch a National Home Insulation plan to insulate at least 4 million homes and phase out coal-fired power by 2025. The Labour leader estimates over 300,000 jobs would be created in the renewables sector as a result of these measures.

corbyn-eee-graphic

Labour would reinstate the department for energy and climate change in its first month of going back into government, as part of its plan to rebuild and transform Britain, “so that no-one and no community is left behind,” he said at the event in Nottingham.

Jeremy Corbyn also encourages the British public to take action as individuals to help to meet the Paris climate agreement. He proposes to use the precautionary principle to protect the environment and people from harm – not a pay-to-pollute approach allowing the richest corporations and individuals to wreck our planet.

 

 

 

Transport for the West Midlands?

transportlogosWhat will the Combined Authority mean for transport?

What things do we want to see from the Metro Mayor?

How might you like to get involved in shaping this agenda?

An opportunity to find out about the new transport powers and budgets held by the West Midlands Combined Authority, and consider and discuss what this could mean for communities across the West Midlands…

Wednesday 14th September, 6pm to 8pm

The Warehouse (Birmingham Friends of the Earth), 54-57 Allison Street, Digbeth, Birmingham, B5 5TH

An evening open to anyone who wants to find out more and may have things to say or ideas to share about developing the excellent transport system that this region needs.

For further information, contact joe@greentravel.org.uk

Post-Brexit we need to build an economy for the many

‘Home-grown solutions’

neil mcinroyYesterday, Ann (West Midlands New Economics Group) sent a link to an article by Neil McInroy (right), chief executive of the Centre for Local Economic Strategies. CLES focusses on economic development and regeneration, ‘promoting and implementing new progressive economic activities which create positive environmental, health and social outcomes’.

It was recently published in the New Start magazine under the title given and a few highlights are offered here:

“Framed by austerity, the economic reality behind many voters choosing Brexit was a future of little promise – insecure jobs, insecure public provision, insecure futures. As a result, many leave voters felt that they had little or nothing to lose. On the back of an economic recession eight years ago, insecurity and a social recession has been built . . .

“Maybe the game is up now? Brexit may now consume the energies of Whitehall and the treasury. The rhetoric and promise of more devolution from Whitehall may at best slow, if not stop. We can hope for more and deeper devolution, but I suspect this is a forlorn hope. More importantly, there is a pressing task in reducing the existing pain and hardship and addressing deteriorating community relations and cohesion.

“In this, the local economic development community, local politicians and potential Metro mayoral candidates have a responsibility. They must strive to protect and build progressive economic and social policy. They must look toward home-grown solutions, and radical innovations across public, social and commercial sectors. They must adopt a pro-social approach to local economic development. This is less about treasury-backed local agglomeration policies, boomgoggling promises and trickle down. This is about stimulating local demand, social investment, addressing city-wide inequalities and the economics of social cohesion. Progressive local solutions are out there. We need to be bold in accelerating them.

“I would hope the newly-formed commission on inclusive growth . . . (will) use its influence to broaden its narrow growth-within-austerity remit, and explore how to build a truly democratic, inclusive and resilient economy within fairly-funded public services.

“The Brexit vote was in part prompted by a sense that people felt abandoned by the economy, and the state. This has created a new local economic and political reality, and with it come great dangers. As such we must avoid deepening the social recession and accelerating the divides between the haves and the have-nots. It is imperative that we now build an economy for the many and not just the few”.

Read the whole article here: http://newstartmag.co.uk/your-blogs/post-brexit-need-economy-many/

News from the Combined Authority AGM

The West Midlands Combined Authority intended to hold its inaugural AGM last Friday, 10 June, but a little local difficulty in the House of Commons meant that the legislation hadn’t been completed in time.  They went ahead with the planned business, intending to ratify it once the powers had been vested in them.

The meeting was held in Hall 4 at the ICC, around a huge table to accommodate the council leaders, chief execs, LEP and others.  There had been very little publicity for the event, but there were a number of interested people in the public seats.

Much of the agenda was formal acceptance of constitutional matters – the agenda and papers are here:

https://westmidlandscombinedauthority.org.uk/committee-papers/west-midlands-combined-authority-board/

Cllr Bob Sleigh from Solihull was elected chair and Cllr Pete Lowe from Dudley was vice-chair.

The reports pack does include the governance structure at p37, which is worth a look as it indicates the areas of future work. The portfolios were not allocated though: this was deferred/delayed to an unspecified future date.

There was an intervention from David Jamieson, the Police and Crime Commissioner about the powers of the mayor and the potential for the WMCA to veto the mayor’s decisions.  He felt he couldn’t support the transfer of police powers to the mayor on that basis.

The Strategic Economic Plan was not available in advance: despite being launched before the meeting, it was not handed out until the relevant item was reached on the agenda.  The online version is quite hard to find but this is the link:

https://westmidlandscombinedauthority.org.uk/about/strategic-economic-plan/

Some of the diagrams do require a measure of caution – see Ravi Subramanian’s take on one of them:

The idea was repeated that this was part of a nest or set of SEPs which incorporates the three LEP SEPs.  The versions shown for this were the 2014 ones, so no formal updating has yet taken place.

Martin Reeves, the “Head of Paid Service” and Chief Exec at Coventry CC, introducing the SEP, said that the dynamic economic impact model was the most exciting part of the strategy.

The Strategic Transport Plan was also presented – this was part of the papers circulated in advance, as above.   The chair of the transport delivery committee will be Cllr Richard Worrall from Walsall, but the decision on a vice-chair was deferred.

There were also updates from the three commissions:  Norman Lamb MP gave an interesting verbal update on the work of the Mental Health Commission.  While he did emphasise that their work was about reducing the cost of mental ill-health and addressing the impact on productivity, he talked about the West Midlands leading the way nationally and that it was not a one-off exercise but the start of a journey.  They have looked at the work of Thrive NYC, which is led by the Mayor of New York,and favour a similar concordat approach.  He also mentioned the criminal justice system and that they have identified that mental health treatment orders are not being used.  The full report from the commission will be launched in September, but there were no notes or slides from his update.

The Land Commission update really just identified that they are not under way yet.  The one which worried me was the Productivity and Skills Commission report.  Sarah Middleton, the chief executive of the Black Country Consortium, gave a brief report.  The chair of the commission would be announced shortly.  Desktop research had been done re mapping and research, and there would be a workshop on 4 July for regional and national experts to identify lines of enquiry. This would be business-led with support from the universities.    There seemed to be very little planned to involve local groups or to allow the voices of young people and seldom heard groups to be heard.  Nick Page, chief exec at Solihull MBC, seemed to be the lead on that, so organisations who feel they should be there should probably contact him.

Overall, it was difficult to tell if the less than inclusive approach was deliberate, or accidental given their timescales and resources.  We do need to keep reminding the Combined Authority that civil society expects them to make some of the effort to engage.

Karen McCarthy

Roundtable meeting: Shaping the Combined Authority’s economic agenda

We are organising a West Midlands Civil Society Forum roundtable meeting to discuss and influence how the Combined Authority’s economic agenda can best meet the needs of all communities and neighbourhoods. This will be on Thursday 9th June at 4pm in Birmingham. Venue to be confirmed. It is open to all interested civil society organisations in the area – although as a roundtable meeting there are limited places.

As background – we have been involved in establishing a West Midlands Civil Society Forum, to provide a voice for civil society into Combined Authority decision-making. We are at early stages – with positive noises from the Combined Authority about our role – and are seeking new organisational members. For more information and to join the wider Forum, click here.

Although still in embryonic form, the Forum is establishing working groups on issues that the Combined Authority will be addressing, and is aiming to engage as much of civil society as possible in these discussions. This roundtable is part of that process: as an immediate outcome its results will be summarised in a short statement and fed into the Combined Authority leadership to be taken into account in its decision-making. In the longer term we hope to establish an economics, training and development working group to continue engagement with the Combined Authority.

If you’re interested in attending, please email karen@localisewestmidlands.org.uk telling us what civil society organisation you represent and we will let you know if there are still spaces.

If you can’t make the meeting, but would like to contribute to our thinking, please send us an email with your thoughts and we will feed this in and keep you informed. And don’t forget you can join the wider forum as above.

Karen Leach (LWM) and Ted Ryan (RnR)