Community Wealth Building in Preston and Lancashire

The Great Recession – 10 years ago

Consequences of recession and accompanying austerity Huge amounts of public money has had to go into bailing out the financial system. Austerity measures mean continuing squeeze on most of population, despite some increase in jobs and modest growth. Investment and productivity remain weak & bank lending to business is paltry. Little sign of improvement in living standards and inequality continues to rise. A systemic failure – the 21st century model of capitalism has failed – but not been replaced. Current macro economic approaches seeking to prop a deformed system up – do not address inherent problems.

This systemic failure spreads to Preston

The Preston Model based on successful alternatives here and overseas

A democratic economy emerges in Preston Community Wealth Building has over 10 large placed based institutions in Preston and Lancashire participating with a combined spend of nearly £1 billion per annum increasing spend in the local economy to benefit the local economy. £100m placed based investment by local government pension fund in student flats, hotel and office space through city deal we wish to build on. Expansion of cooperative and employee owned businesses through Preston’s Cooperative Network with UCLan and others. Commitment to ‘gap coops’. Commitment to establishing Lancashire Community Bank and continued support for credit unions and CDFI’s. Preston City Council is now an energy supplier through its partnership with Cheshire East – Fairerpower Red Rose. Opportunity for a Lancashire Combined Authority to establish a housing development role through establishing a housing company.

Public and community banking

Local impact investments (Retirement Systems of Alabama)

Public pension fund investments in Preston

OUTCOMES - REAL LIVING WAGE Out of 39 local authority areas in the north west, Preston ranks 2nd best for part time female employees receiving less than the living wage – 37.6% compared to 45.6% in North West – 2016 (ONS figures)

OUTCOMES - PART TIME LANCASHIRE WAGE LEVELS Part time wage levels – 2011 Part time wage levels - 2016 Preston £143.60 Burnley £149.10 Chorley £141.20 Fylde £161.80 Hyndburn £138.20 Lancaster £140.00 Pendle £154.60 Ribble Valley # Rossendale £117.20 South Ribble £128.40 West Lancs £142.80 Wyre £140.70 North West £152.60 Great Britain £153.00 Preston £192.60 Burnley £172.80 Chorley £176.20 Fylde £168.10 Hyndburn £183.50 Lancaster £173.30 Pendle £173.00 Ribble Valley £163.70 Rossendale £164.70 South Ribble £181.30 West Lancs £173.80 Wyre £133.80 North West £173.90 Great Britain £177.60

OUTCOMES – INDICES OF MULTIPLE DEPRIVATION Between 2010 and 2015 Preston improved its rank average position from 59th to 72nd lifting us out of the bottom 20% most deprived authorities

Take Back Control? In Lancashire, all 14 districts voted to leave the EU. But if power simply remains in Whitehall and in the boardrooms of large corporations, those citizens will not have taken back control in any meaningful sense. Instead, local economic democracy offers a more genuine way for citizens to take back control.