Could Preston provide a new economic model for Britain’s cities?

Preston bus station. Image: Getty.

Could a blueprint for a self-sufficient local economy worked out by a Lancashire council struggling with poverty and austerity signpost the future for municipalities across England and Wales?

Preston City Council’s work towards developing an economic ecosystem rooted in co-operative principles informed elements of the programme on which Labour fought June’s general election. It’s also at the heart of a major new report, seeking to establish a philosophy to guide the party’s economic policy at local and national level.

The foundations of the Preston Model were laid in 2013, as the Labour-run council cast around for ideas to rebuild the economy of a city ranked in the bottom 20 per cent of the deprivation index, and facing the near-halving of its central government grant from £30m to £18m.

The council looked across the Atlantic to find a possible way forward. It found it in the example of Cleveland, a rust-belt city that has pioneered initiatives to consolidate and widen the circulation of wealth within its economic orbit.

Cleveland’s ’community wealth building’ project emphasises the role large institutions rooted in a municipality such as hospitals, airports, colleges, housing associations – and local authorities themselves – can play as ‘anchors’ around which regional economic ecosystems can stabilise and grow.

By allocating more of their spend budgets to local suppliers and producers, recruiting from the workforce on their doorsteps and incubating local businesses and community organisations, the anchors can keep wealth flowing in municipal economies.

The Cleveland philosophy overlaps with the Foundational Economy concept developed by Manchester University’s Centre for Research on Socio-Cultural Change (CRESC), which underlines the often overlooked importance of the ‘everyday’ economy. This is the backbone of the regional infrastructures that employ a third of the workforce in England and Wales, and encompasses sectors such as care, health, education, retail, hospitality and food processing.

The council worked with the Democracy Collaborative, a US consultancy closely associated with Cleveland’s reconstruction, and British think-tank the Centre for Local Economic Strategies (CLES) to identify anchors capable of bootstrapping Preston’s economy.

It found that, of the £1.2bn spent annually by major city institutions – including the city and county councils, the university, the constabulary, the hospital and the housing association – only a fraction went to Preston businesses and organisations.

The council worked with its partners to encourage the anchors they identified to reconfigure their spending patterns. A £600,000 printing contract tendered by the constabulary was kept in Preston, and the £1.6m council food budget was broken into lots and awarded to farmers in the region. Since 2013 the council has spent an additional £4m locally, up from 14 per ecnt of its budget in 2012 to 28% in 2016.

As the project has gathered momentum, Preston has established a social value framework to inform all aspects of the local procurement cycle, as well as a city wide credit union as part of a financial inclusion strategy.

Councillor Matthew Brown – Preston’s cabinet Member for  social justice and inclusion policy – says the council is working towards building a tightly integrated ecosystem of co-operative enterprises around the city’s anchor institutions. In this, it is following the example of Cleveland’s Evergreen Co-operatives network and Spain’s Mondragon federation:

“We’re trying to promote public ownership at a local level. So there’s the idea of establishing a community bank. There’s the idea of promoting credit unions and community development funds. There’s the possibility of using the council’s pension fund for investment in the local economy. We’re looking at establishing municipal energy partnerships. And there are possibilities around creating co-ops where there are gaps in the supply chain – we’re working with the university on that now.”

Preston’s move towards self-sufficiency has helped the city achieve the second biggest shift in its multiple deprivation index ranking between 2010 and 2015. It also beat Manchester and Liverpool to win recognition in the 2016 Good Growth for Cities index as the best city in north-west England in which to live and work, according to criteria including jobs, income, work-life balance, transport, the environment and the house-price-to-earnings ratio. Brown said:

“You can see it all comes together to form quite a powerful post-capitalist framework. This is very challenging to the economics we’ve had over the last 40 years, and it’s that cultural issue which is probably the biggest thing we need to break down.”

The council’s efforts to feel its way towards a robust co-operative economic framework have been the subject of studies by the CLES and the Co-operative Party, and soon gained the attention of the Labour leadership after Jeremy Corbyn was elected on a mandate to explore ideas for new economic models.

Shadow Chancellor John McDonnell chose Preston to deliver a major speech on the cooperative economy in early 2016, in which he declared an aspiration to extend principles of “decentralised ownership and democratised wealth” across regional economies and the wider national economy.


“I know John is very keen on how we can work together in future,” said Brown. “There are plans to roll out this kind of model nationwide, to get as many local authorities and senior councillors involved in it as possible.”

Elements of the Preston Model could be discerned in the party’s 2017 manifesto commitments to introduce new procurement requirements for national and local government suppliers, and to double the size of the co-operative sector by making funding available through national and regional investment banks and granting employees the ‘right of buyer of first refusal’ if the company they work for comes up for sale.

What’s more, Preston’s example is central to a new Labour report – Alternative Models of Ownership, to which Brown contributed – that explores possibilities for extending co-operative forms of economic organisation across the British economy, at the levels of the individual firm, municipalities and state owned enterprises.

The report foregrounds Preston as primary case study for “the development of ownership models which circulate wealth rather than extract it”. It proposes that anchor institutions might be identified across all English and Welsh cities, and where necessary created, through the relocation of national institutions – such as OFSTED or the lottery – outside the capital.

The report follows Preston’s example in proposing an employment charter obliging employers to consider local workforces when recruiting, and a procurement law requiring public bodies to support local suppliers. It also suggests that Preston’s exploration of the potential of community energy schemes and co-operatives might be rolled out nationally by giving councils a share of receipts from environmental taxes such as the Climate Change Levy.

And there are proposals for community wealth building zones that extend the enterprise zone principle to create spaces for the flourishing of place based co-ops, community and voluntary sector groups.

“The whole idea is to put more democracy into the local economy and also to create wealth and make sure it’s captured by the local community. I think that’s what’s caught the imagination,” says Brown. “I just feel that we’re at the beginning of creating a movement that, if we can get it right, could be quite transformative.”

In today’s febrile political climate, with another election possible as Theresa May’s government seeks to negotiate Brexit with the most fragile of Parliamentary advantages – and with Labour ahead in the polls – Brown’s thesis may be tested sooner rather than later.

 
 
 
 

When should you forget the bus and just walk?

Might as well talk, tbh. Image: Getty.

It can often be tempting to jump on a bus for a short journey through the city, especially when it’s raining or you’re running behind schedule. Where there are dedicated bus lanes in place, it can feel as though you speed past gridlocked traffic. But as city authorities begin new initiatives to get people walking or cycling, that could all change – and so could you.

British people are wasting tens of hours in traffic every year: London comes top, with the average commuter spending 74 hours in traffic, followed by Manchester, with 39 hours and Birmingham and Lincoln, both with 36 hours.

It might surprise some people to learn that cities are intentionally slowing down private vehicles, in order to shift people to other, more efficient, modes of transport. In fact, Transport for London removed 30 per cent of the road capacity for private vehicles in central London between 1996 and 2010. That trend continues today, as the organisation gives over more space for buses, cyclists and pedestrians.

London’s road capacity, over time. Image: Transport for London/author provided.

Clamp down on cars

The loss of road capacity for cars has occurred across most UK cities, but not on the same scale everywhere. The good news is that the changes, when made, appear to have reduced actual car congestion. It seems that by making it less attractive to use your car, you’ll be more likely to use other transport. In fact, the average speed of buses and cyclists can be up to twice as fast as normal traffic in cities such as London.

The relationship between walking and improved health has been proven to such an extent that it seems everyone – your doctor, your family, regional and national government – wants to increase physical activity. The savings in health care costs, are via improved fitness, reduced pollution and improved mental health, and its impact on social care are huge.

For instance, Greater Manchester wants to increase the number of people who get the recommended level of exercise (only about half currently do). The most advanced of these plans is London’s, which has the specific goal of increasing the number of walks people take by a million per day.

So, the reality is that over the next few years, walking will gradually appear more and more “normal” as we are purposefully nudged towards abandoning our rather unhealthy, sedentary lifestyles.


The long journey

Consider this: the typical bus journey in the UK is almost three miles, with an average journey time of around 23 minutes. The equivalent walk would take approximately 52 minutes, travelling at just over three miles per hour. It seems obvious that the bus is much faster – but there’s much more to consider.

People normally walk at least a quarter of a mile to and from the bus stop – that’s roughly ten minutes. Then, they have to wait for a bus (let’s say five minutes), account for the risk of delay (another five minutes) and recover from the other unpleasant aspects of bus travel, such as overcrowding.

This means that our 23 minute bus journey actually takes 43 minutes of our time; not that much less than the 52 minutes it would have taken to walk. When you think of the journey in this holistic way, it means you should probably walk if the journey is less than 2.2 miles. You might even choose to walk further, depending on how much value you place on your health, well-being and longevity – and of course how much you dislike the more unpleasant aspects of bus travel.

The real toss up between walking and getting the bus is not really about how long it takes. It’s about how we change the behaviour and perceptions we have been conditioned to hold throughout our lives; how we, as individuals, engage with the real impacts that our travel decisions have on our longevity and health. As recent converts to walking, we recommend that you give it a go for a month, and see how it changes your outlook.

The Conversation

Marcus Mayers, Visiting Research Fellow, University of Huddersfield and David Bamford, Professor of Operations Management, University of Huddersfield.

This article is republished from The Conversation under a Creative Commons license. Read the original article.