Paint Your Town Red

1. Community wealth-building offers an alternative to failed economic models

"At a time of compounding economic, social and environmental challenges, Paint Your Town Red offers a powerful and detailed roadmap for how local public authorities, institutions and citizens can leave deprivation behind and rebuild their communities."

Failed models and new alternatives. For decades, communities have suffered from deindustrialization, austerity, and neglect by central governments. Traditional approaches to economic development, such as attracting outside investment or relying on large corporations, have often failed to deliver sustainable prosperity. Community wealth-building emerges as a response to these challenges, offering a bottom-up approach to economic regeneration.

Core principles of community wealth-building:

• Plural ownership of the economy
• Making financial power work for local places
• Fair employment and just labor markets
• Progressive procurement of goods and services
• Socially productive use of land and property

Global context and local action. While the challenges facing communities are often global in scale, community wealth-building demonstrates that meaningful change can begin at the local level. By focusing on local resources, skills, and institutions, communities can create resilient economies that prioritize the well-being of residents over external profits.

2. Preston Model: Redirecting local spending to revitalize the economy

"Preston should not be thought of as a 'one-size-fits-all' blueprint that can be easily replicated elsewhere; instead, it demonstrates how local communities, movements, businesses and organisations can develop their own strategies to address their own situations."

Origins and development. The Preston Model emerged in response to the failure of traditional regeneration schemes and the impact of austerity measures. Inspired by examples from Cleveland, Ohio, and Mondragón, Spain, Preston City Council developed a strategy to redirect local spending and investment towards local businesses and cooperatives.

Key achievements:

• Increased local procurement from £38 million to £111 million
• Created new jobs and raised wages
• Developed worker-owned cooperatives
• Established plans for a regional community bank

Adaptability and inspiration. While the Preston Model has gained significant attention, its success lies not in direct replication but in inspiring other communities to develop tailored strategies based on their unique circumstances and resources. The model demonstrates the potential for local action to create meaningful economic change.

3. Anchor institutions play a crucial role in community wealth-building

"Like many other towns and cities in the UK, the withering of Preston's private sector over the past few decades had seen its public sector expand to fill the gap. These public bodies — colleges, hospitals, universities — account for thousands of jobs and hundreds of millions in spending and exert a large influence over city life."

Identifying and engaging anchors. Anchor institutions are large, place-based organizations that are unlikely to relocate and have significant economic impact on their communities. These often include universities, hospitals, local governments, and major employers. Engaging these institutions is crucial for redirecting spending and creating local economic opportunities.

Strategies for anchor engagement:

• Analyze procurement spend and identify opportunities for local sourcing
• Encourage hiring from disadvantaged communities
• Leverage real estate and investment for community benefit
• Develop partnerships for workforce development and local business support

Beyond traditional anchors. Communities without large public institutions can explore alternative anchor strategies, such as engaging with sports clubs, cultural institutions, or networks of smaller businesses. The key is to identify organizations with significant local economic impact and a commitment to community well-being.

4. Worker-owned cooperatives foster economic democracy and resilience

"Businesses with shared ownership have also been shown to be more productive and to distribute a better share of profits across their workforce."

Benefits of worker ownership. Cooperatives offer a democratic alternative to traditional business models, giving workers a stake in decision-making and profits. This model can lead to increased job satisfaction, higher productivity, and greater economic resilience during downturns.

Key features of worker cooperatives:

• Democratic control by worker-owners
• Equitable distribution of profits
• Focus on long-term sustainability over short-term gains
• Commitment to community well-being

Supporting cooperative development. Local authorities and anchor institutions can play a crucial role in fostering cooperative growth by:

• Providing start-up support and financing
• Offering preferential procurement opportunities
• Facilitating conversions of existing businesses to worker ownership
• Developing educational programs on cooperative principles

5. Progressive procurement strategies keep wealth circulating locally

"In Preston, the effect of redirecting procurement to local businesses ripples outward, as businesses who win contracts to provide local goods and services can employ more people, who then, in turn, have more money to spend."

Rethinking procurement practices. Traditional procurement often prioritizes cost-cutting over social value, leading to contracts with large multinational corporations that extract wealth from local communities. Progressive procurement strategies aim to redirect spending to local businesses and social enterprises, creating a multiplier effect in the local economy.

Implementing progressive procurement:

• Break large contracts into smaller lots accessible to local businesses
• Incorporate social value criteria in tender evaluations
• Provide support and training for local businesses to bid on contracts
• Encourage anchor institutions to adopt similar practices

Overcoming challenges. Shifting procurement practices requires overcoming institutional inertia and risk aversion. Success depends on building strong relationships with local suppliers, providing clear guidance on social value expectations, and demonstrating the long-term benefits of local spending.

6. Community banking and alternative finance empower local economies

"Forms of community banking can channel investment to local communities while still delivering a steady financial return for investors."

Addressing financial exclusion. Many communities face challenges accessing appropriate financial services, with bank branch closures and predatory lending practices exacerbating economic difficulties. Community banking initiatives aim to fill this gap by providing locally-controlled financial institutions focused on community needs.

Types of community finance initiatives:

• Credit unions
• Community development financial institutions (CDFIs)
• Mutual banks
• Local currencies

Benefits of local financial institutions:

• Increased lending to small businesses and underserved communities
• Retention of local savings for community investment
• Greater accountability and responsiveness to local needs
• Support for cooperative and social enterprise development

7. Land stewardship and sustainable development create long-term prosperity

"Wales is often characterised by the industrial landscape of its past, but projects like land stewardship and community-owned renewable energy involve looking beyond definitions of the community as 'the town' to the greater landscape and resources contained in 'the whole valley'."

Reimagining post-industrial landscapes. Many communities face challenges of abandoned or underutilized land following deindustrialization. Community land trusts and stewardship projects offer opportunities to reclaim these spaces for community benefit, combining environmental restoration with economic development.

Examples of land-based initiatives:

• Community-owned renewable energy projects
• Urban agriculture and food production
• Ecological restoration and rewilding
• Sustainable tourism and recreation

Balancing economic and environmental goals. Successful land stewardship projects demonstrate that environmental protection and economic development are not mutually exclusive. By involving communities in decision-making and management, these initiatives can create sustainable livelihoods while preserving natural resources for future generations.

8. Participatory democracy is essential for effective community wealth-building

"Participatory budgeting can direct funding to where a community feels it is most needed, in line with the vision of devolution as a way of improving the effectiveness of government spending decisions through local control."

Beyond consultation. Meaningful community engagement goes beyond traditional consultation processes to give residents direct decision-making power over local resources and priorities. Participatory democracy tools, such as participatory budgeting and citizens' assemblies, can build trust and ensure that community wealth-building initiatives reflect local needs and aspirations.

Implementing participatory processes:

• Participatory budgeting for allocating community resources
• Citizens' assemblies for developing policy recommendations
• Co-production approaches to service design and delivery
• Digital platforms for ongoing community engagement and feedback

Overcoming barriers to participation. Successful participatory processes require careful design to ensure inclusivity and accessibility. This may involve providing childcare, translation services, or digital access support to enable diverse community participation.

9. Diverse local initiatives adapt community wealth-building to specific needs

"Community wealth-building is in some ways a reinvigoration and consolidation of a vibrant international history of attempts at self-government, democratic control of work, community-owned utilities and mutual aid, based on longstanding socialist, anarchist, cooperative and environmentalist traditions."

Tailoring strategies to local context. While the core principles of community wealth-building are widely applicable, successful implementation requires adapting strategies to local circumstances, resources, and priorities. Different communities may emphasize various aspects of the approach based on their specific challenges and opportunities.

Examples of diverse initiatives:

• North Ayrshire's focus on climate action and participatory democracy
• Newham's emphasis on housing and addressing racial inequalities
• Welsh government's "foundational economy" approach
• Rural communities' focus on land stewardship and renewable energy

Learning and adaptation. The diversity of community wealth-building initiatives creates opportunities for cross-pollination of ideas and learning between communities. Regular sharing of experiences and best practices can help refine and improve strategies over time.

10. Local government engagement is key to implementing transformative change

"Although few people take an active interest in how their area is run, increasing awareness of and involvement in local government can lead to positive changes and more reflective representation of an area."

Importance of local democracy. While national politics often dominates public attention, local government plays a crucial role in shaping community well-being. Engaging with local democratic processes is essential for implementing and sustaining community wealth-building initiatives.

Ways to engage with local government:

• Stand for election as a councillor
• Attend and participate in council meetings
• Join or form local community groups to advocate for change
• Propose motions and resolutions to council for consideration

Overcoming institutional resistance. Implementing new approaches often faces resistance from established interests and bureaucratic inertia. Successful change requires building alliances, demonstrating tangible benefits, and persistently advocating for new ideas within local government structures.

Last updated: November 19, 2024