Paint Your Town Red

Community Wealth Building is a new kind of economy. It offers a way of addressing the major divides in wealth and opportunity by focusing on local economies. This new book by Matthew Brown and Rhian Jones looks at how the UK’s leading exponent, Preston, took back control of their local economy and how others could do the same. The leading exponent of Community Wealth Building in Scotland is Labour North Ayrshire Council, and the Scottish Government has also announced its intention to develop a country-wide programme.

 At the heart of Community Wealth Building is the belief that ordinary individuals and groups can take ownership, direction, and control of their own resources to improve their own lives. When there is little prospect of economic transformation coming from Westminster, local action is a critical source of hope and change.

 

The book has three parts.

 

Part One looks at the history and thinking behind Community Wealth Building. It makes the political case against austerity economics and the case for a radical alternative. The pandemic has also highlighted the failure of global supply chains and precarious work. Community Wealth Building has its roots in cooperative and other self-governing movements worldwide, and these are explored from the Mondragon cooperative in Spain to the Democracy Collaborative in Cleveland, Ohio. And finally, to Preston and their work with the Centre for Local Economic Strategies (CLES). The book recognises the importance of local leadership, including Jamie Driscoll in North of Tyne and Joe Cullinane in North Ayrshire, who bring in new ideas tailored to local circumstances.

 

Part Two looks at how the ideas were applied in Preston, not as a ‘one-size-fits-all’ blueprint; instead, it shows how the concept has been used in practice. It has taken Preston from being one of the country’s most deprived and disadvantaged, hit by deindustrialisation, austerity and government funding cuts, to seeing significant economic improvement through shifting spending and investment from external suppliers to local producers and businesses. This chapter shows how it was done, bringing on board the anchor institutions in the city and using the power of public procurement, using case studies to illustrate the mechanisms.

 

Part Three looks at how Community Wealth Building is being applied in different ways across the UK. Devolution has been an important driver, as it allows the nations and regions of the UK to take a different approach from the UK Government’s centralism. North Ayrshire is used as a case study to illustrate how the concept has been applied to reflect the needs of that local authority area. Although welcoming the Scottish Government’s interest, Joe Cullinane emphasises the need for it to be accompanied by a commitment to a transformative agenda, to avoid diluting its potential when scaled-up and to get beyond abstract political platitudes on “inclusive growth” or “well-being”.

 

One aspect of Community Wealth Building that can seem challenging is creating alternative financial institutions after the 2008 financial crisis exposed the failings of the current banking model. The book highlights the role of credit unions and how to establish a mutual ‘people’s bank’. I also liked the chapter that urged less consultancy and more “Let’s do something and see what happens”! 

 

The book’s final part is a guide on ‘How to Paint Your Town Red’. It starts with local government and how it can still offer radical and positive change. Then develops how you can use the council to establish progressive procurement and engage with the trade unions and the pension fund. This includes a useful guide to further resources. This book doesn’t duck the challenges in adopting this model. In particular, it isn’t always easy to evaluate the outcomes, and public engagement is never simple. In Scotland, we have tried a wide range of initiatives, but none have fully achieved citizen buy-in, particularly in disadvantaged areas. 

 

It also recognises some of the political challenges in getting councils to think radically. The recent elections show that the electorate has rewarded councils like Preston. These ideas featured in the Scottish Labour manifesto, but community didn’t feature as strongly as it might have done in the campaign. However, It’s encouraging that Labour’s devolved leaders are to meet regularly to develop ideas like Community Wealth Building. Labour’s electoral path to recovery should be built on localism, not centralisation. 

 

This isn’t an academic evaluation of Community Wealth Building. It aims to explain the concept and help those councillors who want to break away from simply administering the council towards painting their own town red.