Preston Model

Preston Model
Name	Preston Model
Type	Community wealth-building strategy
Location	Preston, Lancashire, England
Introduced	2010s
Key people	Paul Williams, Kate Raworth, Jonny Fisher
Institutions	Preston City Council, Lancashire County Council, University of Central Lancashire
Related	Cooperative movement, Anchor institutions, Community land trusts

Preston Model The Preston Model is a municipal economic strategy developed in Preston, Lancashire that seeks to retain wealth locally through institutional procurement, cooperative enterprise, and asset transfer. It combines local initiatives led by Preston City Council, civic partners such as Community Wealth Building network, and academic support from University of Central Lancashire to create place-based alternatives to conventional market arrangements. Proponents include local politicians and activists connected to networks like the Labour Party (UK), Co-operative Party, and figures associated with the New Economics Foundation.

Overview

The approach centers on municipal-scale interventions inspired by precedents in the Mondragon Corporation, the John Lewis Partnership, and policy debates influenced by thinkers from the New Left Review and the Institute for Public Policy Research. Key institutional actors include Preston City Council, Lancashire County Council, the University of Central Lancashire, the NHS England local clinical commissioning groups, and anchor organisations such as Baxenden Brewery-type local businesses and mutuals. It mobilises tools like local procurement, community banking models similar to Glasgow Credit Union, and land trusts akin to Community Land Trusts (CLT) experiments elsewhere.

Origins and development

Roots trace to economic conditions after the 2008 financial crisis and austerity policies enacted by successive UK administrations including cabinets led by David Cameron and Theresa May. Early catalysts included local activism linked to campaigns at Citizens UK and policy work from think-tanks such as the Co-operative College and the New Economics Foundation. Political leadership in Preston drew on models from the Mondragon Corporation cooperatives in Spain, municipal strategies observed in Cleveland (Ohio) and community wealth-building pilots in Glasgow, while collaborating with scholars connected to Durham University and practitioners from Power to Change Trust.

Key components and mechanisms

Mechanisms deploy anchored procurement strategies engaging institutions like the University of Central Lancashire, the NHS Foundation Trusts, and local councils to shift contracts toward local suppliers and cooperatives. Financial infrastructure initiatives mirror instruments used by triodos Bank and Co-operative Bank-aligned credit facilities, and incorporate community share issues similar to projects led by Co-operatives UK. Property strategies use municipal asset transfers, community land trusts comparable to Granby Four Streets Community Land Trust and land remunicipalisation efforts observed in Hamburg. Governance mixes participatory models influenced by Participatory budgeting experiments in Porto Alegre and stakeholder engagement practices seen in John Lewis Partnership.

Implementation in Preston

Local enactment relied on council policy frameworks adopted by councillors from parties such as the Labour Party (UK) and partners including Lancashire County Council. The city leveraged procurement levers in contracts with institutions like the University of Central Lancashire and healthcare providers modeled after NHS England commissioning, while facilitating worker co-operatives with support from Co-operatives UK and training from Manchester Metropolitan University and local chambers such as the Federation of Small Businesses. Asset transfer processes paralleled cases in Glasgow and drew upon legal models used by organisations like Community Land Trusts (CLT) and advice from Locality (UK). Campaigns featured civic groups connected to Citizens UK and trade union affiliates within Unison.

Outcomes and impacts

Reported outcomes included the creation of worker-owned enterprises, local supplier development, and reinvestment of public procurement into the community, with measurable shifts documented by researchers from the University of Central Lancashire and policy analysis bodies like the IPPR North. Economic indicators were compared to benchmarks in municipal experiments such as Cleveland (Ohio), while social outcomes referenced community resilience narratives similar to Granby Four Streets recovery. The model influenced mayoral discussions in cities represented by figures like the Greater Manchester Combined Authority leadership and was cited in policy debates at the Labour Party (UK) conference and publications by the New Economics Foundation.

Criticisms and challenges

Critiques emerged from academics affiliated with University of Manchester, London School of Economics, and commentators in outlets tied to The Guardian and Financial Times, arguing limitations in scale, reliance on public sector demand, and potential compliance issues with procurement law such as statutes influenced by the European Union procurement regime prior to Brexit. Trade groups including the Federation of Small Businesses and larger suppliers raised concerns about competitive fairness. Political critiques referenced tensions between localist policies and national policies promoted by administrations under Theresa May and Boris Johnson.

Replication and influence internationally

The Preston approach has been cited in policy exchanges with cities like Cleveland (Ohio), Glasgow, Dublin, Barcelona, and in networks convened by organisations such as the Rockefeller Foundation, UN-Habitat, and the European Committee of the Regions. It informed debates among policymakers in regions represented by the Scottish Government, Welsh Government, and municipal alliances affiliated with the C40 Cities Climate Leadership Group and community economic development programs at Rutgers University and University of Toronto urban policy centres. Replication efforts have included pilot programmes supported by Power to Change Trust and technical assistance from Co-operatives UK and Locality (UK).

Category:Community economic development Category:Preston, Lancashire Category:Cooperative movement