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.

Make social care an economic ‘engine’ of the West Midlands

Press release for our inclusive economics & social care report with New economics Foundation – launched today

Social care may be on the brink of crisis but the sector has the potential to become a driver of the West Midlands economy.

A report for Localise West Midlands as part of the Good City Economies programme, has called for a re-framing of the sector, away from large-scale providers towards community and cooperative care models.

Prioritising and promoting community-scale care provision could transform the sector, creating high quality jobs and improving standards of care across the region.

Following calls by the new mayor of West Midlands Andy Street for greater diversity in the provision of all public services, this timely report sets out the benefits of a more localised social care system.

The report, Social Care as a Local Economic Solution in the West Midlands, was scoped by a group of organisations active in the region on inclusive economics and social care.

Social care is a ‘dysfunctional system dominated by “too big to fail” companies’, the report says. For while the ‘big five’ care providers appear to offer lower costs, almost a third of their spend goes to shareholders.

Data cited in the report shows that the UK’s five biggest chain social care companies offer big returns to investors, taking up 29% of their costs —the second-biggest drain on expenditure after staff wages.

It calls for the West Midlands Combined Authority (WMCA) to prioritise new models of care and establish a community care innovation unit.

Community-led care providers tend to keep money in the local economy and offer more personalised care for the same cost. A regional ecosystem of smaller-scale care businesses, such as West Midlands-based Crossroads Care, could ensure public investment in social care is re-invested in communities.

This re-framing of social care models a new approach to local economics, one that is aligned with the assets and needs of communities rather than focused on economic growth and inward investment. This ‘foundational’ approach to local economies could be extended to other sectors such as housing, food and utilities.

David Powell, subject lead at the New Economics Foundation and author of the report, said, ‘Social care is on a cliff-edge. New ideas are desperately needed. The West Midlands can transform the perception of the care sector in the region: a growing economic sector with the potential to meet a diversity of skills, employment and economic needs for communities that aren’t helped by GVA-driven economic strategies.’

Localise West Midlands, who commissioned the report said: ‘The West Midlands coordination role and the election of its first Mayor – who has committed to not-for-profit models of public service provision – places it in a unique position of leadership.

‘The region has an opportunity to be visionary if it understands how sectors like social care can provide careers in places where people live meeting local needs. To deliver its commitment to inclusive prosperity the WMCA will need strategies like this based on real local needs and assets, and to create an economy in which we all have an ownership stake.’

 

Notes:

Social Care as a local economic solution for the West Midlandsis part of the Good City Economies project, a partnership between New Economics Foundation and Centre for Local Economic Strategies, with funding from Friends Provident Foundation.

Localise WM works towards local supply chains, money flow and ownership for a more just and sustainable economy and will be focusing on policy opportunities such as this at the regional level over the coming years. Its work on this has been funded by the Barrow Cadbury Trust.

Download the report here

 For more information contact:

 Author and primary contact:

David Powell: David.Powell@neweconomics.org

 Co-ordinator of Localise West Midlands:

Karen McCarthy: karenm@localisewestmidlands.org.uk

@localisewm 0121 685 1155

Good City Economies: @GoodCityEconomy

 

Notes:

Localise West Midlands: http://www.localisewestmidlands.org.uk

Good City Economies: https://newstartmag.co.uk/good-city-economies/

The Birmingham Pound: not just a piece of cake…

It’s been fantastic to see all the interest in the potential of a Birmingham Pound over the last few days. Just one tweet following a very first-stage meeting of a few potentially interested people, and the Birmingham Mail were covering the story. I don’t want to belittle my abilities to attract conventional media to the Localising Prosperity agenda, but we’re hardly used to being sought out like that! Thanks Tom Davis – your professional interest is much appreciated.

For those who don’t know: the current new rash of local currencies are worth a look. In our meeting we heard from Steve Clarke of the Bristol Pound. They are taking off in Bristol, Brixton and Totnes particularly – though lots of other places are following, like Birmingham. The local pounds are exchangeable with sterling: for every Bristol Pound in circulation there’s a sterling one in the credit union’s account. Local currencies can be used with locally-owned businesses. Businesses can trade with other local businesses. Bristol council accepts council tax and business rates in Bristol Pounds, and council employees can accept part of their wages in them. There are BPFRONT (2)locally-designed paper notes, which are great for spreading awareness of the scheme, but most transactions are electronic with a handy mobile-to-mobile payment system. This means for example that market traders are enabled to take electronic payments.

You can buy bathrooms, bike repair, plumbing, as well as all the expected local produce. Yes, it needs funds to run the scheme, but the returns look healthy if hard to measure: Bristol Council thinks it’s worth around £100,000 per year in tourism benefits alone. It also raises the profile of local money circulation as an idea: far more people are becoming aware that they can choose to spend their money in a way that supports livelihoods.

One thing I’m going to bang on about constantly as we progress these plans is that we must make this an inclusive local currency: Birmingham is good at ‘superdiversity’ and if this local currency happens we want it to be something everyone in the city feels is theirs to use, in whatever shopping culture they tend to find themselves. I live just off Ladypool Road and would love to see all those great indie grocers taking Birmingham Pounds, and paying their suppliers at the Birmingham Wholesale Markets with them… The credit union also plays a role: electronic transactions happen via accounts with the local credit union, which gives them new members, new capital and higher public profile.

Not that I think any of the new currencies are as ‘exclusive’ as some critics think they are. It’s not the disposable income brigade shopping in trendy independents that have brought about the massive global rise in inequality and environmental injustice, is it? – it’s the corporate shareholder model, sucking out the value from the real economy that gives us our livelihoods.

And to despise that ‘trendy independents’ aspect of local currencies as exclusive does miss how local money flows can work. Surely when some have more disposable income than others, we want that income to be going to the “livelihoods economy” not the parasitic economy? Spending money at Glynn Purnell’s restaurant sends it into the Bigreat_offers_Sainsrmingham Wholesale Markets, whose vital role in providing jobs and affordable fresh food is well documented: better  than some big chain providing a fraction of the local livelihood value. Trickle down is a myth – until you decentralise money flows.

No scale of economy automatically generates equality & inclusion, but tackling the concentration of wealth in so few hands has to be pretty crucial.

So we’re meeting again in a couple of weeks to start to make some plans – for fundraising, promotion, getting signup, organisational models, banknote design competitions, partners to involve. People involved so far are from a credit union, the new Impact Hub, the council, Birmingham Friends of the Earth, Kings Heath Transition, Equality West Midlands, academics and business organisations. There’s a good buzz about it. Watch this space.

Karen Leach

PS – some of us are interested in Black Country local currencies too – get in touch if that’s of interest.

Theme of top post this year: realising the potential of local economic power

Loc prosp header

Mainstreaming Community Economic Development is a major strand of LWM’s work that explores and supports an economic development approach that is based on making the most of local enterprise, existing business supply chains, networks, community assets and human potential.

Read on: http://localisewestmidlands.org.uk/mainstreaming_ced/

Its second project, Localising Prosperity: http://localisewestmidlands.org.uk/mainstreaming_ced/mced2-reports/

Localising Prosperity? See Localise West Midlands’ new website

Loc prosp header

On the Localising Prosperity website, Localise West Midlands asks if you want to maximise the benefits of economic development in your area: “Do you want a socially inclusive, redistributive, prosperous economy?”

This is about localising prosperity for everyoneby integrating community economic development into everyday business. About understanding and building upon an area’s existing strengths so that it can develop from within – maximising the local economic and social benefits for all. To learn more, go to the new website.

It’s a private, public, social and for-profit agenda.

It can be used within public bodies, community groups, private businesses, local enterprise partnerships, Chambers, Business Improvement Districts, thinktanks and the voluntary sector anyone who wants to play a role in making places better and sharing prosperity.

There is a “virtuous circle” relationship between more locally owned businesses, more local power, better social outcomes and greater prosperity:

Loc prosp graphic

LWM’s research concluded that higher levels of small business and local ownership lead to higher levels of economic success, job creation, social inclusion, civic engagement, well-being and local distinctiveness, and this virtuous circle explains how.

So we can realise local economic power rather than handing it to ‘absentee landlords’ i.e. distant private and public sector owners with little understanding of the local area.

Localise West Midlands secured funding from the Barrow Cadbury Trust for 2013-14 to develop this work, building on their 2012-13 research findings and generating practical outcomes from the approach.

Graham Young’s account in the Birmingham Mail quoted Professor David Cannadine: “The Barrow Cadbury Trust has been both an exemplary and a pioneering charity, especially concerned with social improvement, social justice, peace and reconciliation.” Many local people will remember the founders’ son, Paul Cadbury, who furthered these causes, chairing Birmingham’s Research Committee, which published a 1941 document called ‘When We Build Again’, a visionary attempt to look beyond the Second World War towards rebuilding the city.

Localise West Midlands is one of several organisations working to rebuild and rebalance the economy.