The Community Investment Coalition (CIC) welcomes an innovative book on localism by New Weather Institute. ‘People Powered Prosperity’ sets out a new narrative for very local economics, based on local financial and enterprise institutions, which should be embraced by national politicians and by the Treasury. It is an important intervention to kickstart a vital debate about why mainstream policymakers are so suspicious of revitalising local economies, the only basis for the real devolution of power.
The New Weather Institute proposes two reforms:
- The Treasury needs to develop a body of practical knowledge about ultra-local economic solutions and local economic resilience. They need to set up an ultra-local policy and delivery unit, learning the lessons from the experience of local authorities in urban and rural areas which are succeeding in developing working solutions to their economic difficulties.
- Small business now earns 51 per cent of value added in the UK economy. So they should get a similar proportion of the business investment available in the UK. If they are not doing so, it is a sign of serious market failure and requires intermediaries and institutions that can make this possible. In the interim, the Government should track these numbers regularly – comparing profitability and investment by size of business – and to report on them.
Commenting on the proposals, Alison Seabrooke, Chief Executive of CIC Partner the Community Development Foundation (CDF), said: “With a general election around the corner I very much welcome the New Weather Institute’s intervention to push the localism agenda. CIC campaigns for sustainable local economic growth with a greater share of locally generated income remaining within communities.
“A key element of achieving this is increasing the diversity of financial service providers to local businesses – particularly small and micro businesses – so that they can create the wealth and prosperity essential for communities taking responsibility. CDF’s £80 million Community First programme – delivered on behalf of the UK Government – illustrated the capability and willingness of communities to come together to identify their strengths, plan for their future and become more resilient.”
About the Community Investment Coalition
The Community Investment Coalition is a partnership of national organisations, which aims to increase access to affordable finance for all communities. Membership includes the Community Development Foundation, the Centre of Responsible Credit (CfRC), the New Economics Foundation (nef), CCLA, the Community Development Finance Association (CDFA) and Local Trust.
CIC campaigns for:
- Increased transparency and public accountability of financial service providers to support consumer choice and allow effective intervention in under-served markets.
- Increasing diversity of providers and choice for consumers in the financial services sector, with more providers offering a wider range of fair and affordable products.
- More innovation in the financial services sector so that affordable financial products are delivered accessibly to all communities.
- Sustainable local economic growth with a greater share of locally generated income remaining within communities.
- Improvements in financial literacy.