Community wealth building is a term which covers a range of approaches which "...aim at improving the ability of communities and individuals to increase asset ownership, anchor jobs locally by broadening ownership over capital, help achieve key environmental goals, expand the provision of public services and ensure local economic stability”.[1] The original model, the Cleveland Model, was developed in Cleveland, United States, however the Cleveland Model has also been developed and applied with the creation of the "Preston Model", in Preston, Lancashire.[2][3] It is a form of municipal socialism which utilises "anchor institutions", living wage expansion, community banking, public pension investment, worker ownership and municipal enterprise tied to a procurement strategy at the municipal level.[3][4][5]
Preston Model
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The Preston Model is an approach to community wealth building pioneered by Preston City Council, Lancashire, England,[3] and its partners, including Lancashire County Council, Lancashire Constabulary, the University of Central Lancashire, local colleges and a local housing provider.[6] The model is a form of municipal socialism which utilises "anchor institutions", living wage expansion, community banking, public pension investment, worker ownership and municipal enterprise tied to a procurement strategy at the municipal level.[3] Anchor institutions are mission-driven organisations committed to maintaining service in their local communities, such as councils, hospitals, universities, colleges and housing associations.[7]
It is based on projects developed in Cleveland, Ohio and Mondragon, Spain.[5][8] Councillor Matthew Brown, originally Executive Member for Social Justice, Inclusion and Policy, played a key role in developing the model with his colleague Councillor Martyn Rawlinson, working in conjunction with the Centre for Local Economic Strategies. The first issue they tackled in 2012-2013 was to localise their procurement spend in Preston and the surrounding county of Lancashire.[4] Former Shadow Chancellor of the Exchequer John McDonnell was a vocal supporter of the project during his time on the frontbenches.[8]
Criticism
editThe plan has been criticised by some members of Preston City Council. The leader of the council's Liberal Democrat group described it as a 'marketing gimmick' that has not had a substantial effect on the local area, and that locals are not interested in the project. Critics have also pointed out Preston relies heavily on multi-national companies for employment, and that local procurement isn't the answer to everything, despite being a useful tool.[8]
Other areas
editPreston City Council notes that its model builds on Manchester City Council's "principles of progressive procurement" and mentions Birmingham, Oldham, Salford, Kirklees, Islington, Enfield, Southampton, Wakefield and Bristol as examples of other UK locations implementing similar community wealth building approaches.[6] The Centre for Local Economic Strategies sees Manchester's "progressive procurement" as an example of good practice: by 2015/16, community-focussed policy drivers had ensured that 73.1% of the Council's third-party expenditure was placed with organisations based in, or with a branch in, the city, and 90.7% with organisations based in, or with a branch in, Greater Manchester.[9] Southampton City Council continues to embrace "progressive practices" in procurement aimed at "deliver[ing] economic, environmental and social benefits through our contracts, ensuring that money generated by Southampton's economy is retained within Southampton's local economy wherever possible".[10] Birmingham's approach, adopted with the support of former Council leader John Clancy, focussed on using the area's "significant existing wealth ... more effectively for the benefit of our economy and people".[11] Fife and Islington Councils have more recently committed themselves to community wealth building policies.[7]
See also
edit- Community ownership
- Community-supported agriculture
- Using smartphone for calculating food miles
- Local food
- Gar Alperovitz - political economist who has researched and advocated community wealth building
References
edit- ^ Peck, Jules (3 January 2019). "Putting Banking Back in the Hands of the People - RSA". www.thersa.org. Royal Society of Arts. Archived from the original on July 15, 2019. Retrieved 15 July 2019.
- ^ Schaefer, Lisa. "The Preston Model of Community Wealth Building in the UK". Centre for Public Impact. Retrieved 15 July 2019.
- ^ a b c d Hanna, Thomas M.; Bilsborough, Joe; Guinan, Joe (2018). "The 'Preston Model' and the modern politics of municipal socialism". OpenDemocracy (12 June 2018). Retrieved 28 June 2019.
- ^ a b Hopkins, Rob (16 June 2015). "The inspiring tale of the re imagining of Preston's economy". Transition Network. Retrieved 14 July 2019.
- ^ a b Sheffield, Hazel (2017). "The Preston model: UK takes lessons in recovery from rust-belt Cleveland". The Guardian. No. 11 April 2017. Retrieved 28 June 2019.
- ^ a b Preston City Council, What is Preston Model?, accessed 1 June 2023
- ^ a b Centre for Local Economic Strategies, Community wealth building 2023: A guide for new council members, accessed 28 August 2023
- ^ a b c "Preston council: English city hopes recovery fortunes lie in Spanish model". BBC News. 2021-11-07. Retrieved 2021-11-07.
- ^ Centre for Local Economic Strategies, Manchester’s progressive procurement enables growth and tackles poverty, published 28 February 2017, accessed 17 July 2023
- ^ Southampton City Council, Procurement and Contract Management Strategy 2023-2026, accessed 17 July 2023
- ^ Birmingham City Council, Bringing community wealth to Birmingham, published 28 September 2016, accessed 28 August 2023