Local Economic Solutions for Sustainability
Extending Localisation
Localise West Midlands
The Warehouse
54-57 Allison Street
Digbeth
Birmingham
B5 5TH
Tel: 0121 685 1155
Fax: 0121 643 3122
Email: info@localisewestmidlands.org.uk
Registered in England and Wales as a company limited by guarantee (not for profit) no: 6239211
Extending Localisation
- an exploratory report
Overarching issues
An entirely insular economy would be as dangerous and unstable as the global instabilities we see now. A healthy mix for a local economy involves various types and sizes of business, some with strong local links and others with links to external markets, some larger and owned by bigger organisations. The same is true for a healthy and stable approach to finance.
Negative
trends
- In public procurement, the UK government's efficiency agenda can be used to damage the benefits of smaller scale trade. Pursuit of short-term cost-savings (for example joint multi-authority contracts) sometimes assumes the economies of scale as the cheapest approach but can end up being more expensive; and large, multi-agency contracts can ultimately eliminate competition.
- The global price shift in food and oil will be a deadly financial burden on the poorest locally and globally unless a more localised approach to trade is adopted at policy level internationally.
- The role of spatial planning should effect a reduced need to travel. The current West Midlands Regional Spatial Strategy draft has this as a policy but its own sustainability appraisal says its proposals for new housing locations will increase the need to travel by damaging the last strategy's urban renaissance agenda.
Positive trends, good practice and opportunities
- The collapse of the last WTO talks signify a growing unhappiness with trade liberalisation that, given the right pressures, could allow for a new model that protects community-scale economic activity the world over whilst allowing fairer freer trade between countries where evidence shows this is the most advantageous option.
- Public procurement can provide a 'critical mass' for local produce supply chains.
- Local Area Agreement process allows for a more strategic, and potentially more inclusive approach.
Potential recommendations
- As indicators, the potential of the 'local multiplier' concept and limits of 'GVA' must be recognised.
- A review of how the government's efficiency agenda is interpreted and implemented in the region to ensure short-term cost savings do not incur medium and longer term costs.
- Investigate how to ensure the West Midlands spatial strategy doesn't
'increase the need to travel', for example by supporting a needs-led
rather than market-led housing analysis.