With time running out before holding a general election, a bipartisan coalition of mission-driven organizations, including a number of cooperative support groups, has issued a call for policy measures to “rebuild the national economy.” This includes UK Government Ministers who are committed to making this happen.
The Future Economy Alliance (FEA) is made up of social enterprises, co-operatives, interaction organizations, worker-owned businesses, social investors, community-led organizations, fundraisers and third sector experts. It announced its UK business plan at Westminster last month.
The document sets out the challenges facing the UK, including rising inequality, poor standards of public services and low productivity, against a global backdrop of climate change, the aftermath of pandemics and international conflict. It's clear. It says the system is “crippled, hollowed out, offshored, outsourced, dispossessed or falling into disrepair.”
To correct this bleak situation, the FEA proposes that the “next industrial revolution” should be led by the nation's tens of thousands of mission-driven organizations, including co-ops and social enterprises. According to the FEA, this broad umbrella covers around 5% of UK businesses and 9% of GDP, with more than £1bn of profits being reinvested in communities across the country.
Related: Future Economy Alliance poll finds people want change to purpose-driven business
The FEA will focus on five key areas, starting with the decentralization of economic power to create businesses that are 'run by the community, by the community and for the community', such as Liverpool's co-operative bakery and cafe, Home Baked. calls for action. The business was taken over by local residents after a crowdfunding campaign and the creation of a community land trust to operate the building.
The plan also advocates for stronger support and infrastructure for democratically controlled businesses like Homebaked, and the Community Power Act, which would create a nationwide right for communities to buy local assets and space.
The report recommends further support for district energy as part of a human-powered green transition, and recommends that the model be replicated in other key utility sectors.
It also calls for the introduction of a UK-wide Future Generations Welfare Act to provide “the basis of ambition, permissions and legal obligations needed to deliver long-term social, environmental and economic wellbeing”. ing.
The FEA says public procurement also needs to be reformed to be more transparent and prioritize people over profits. The report recommends strengthening the Social Value Act 2012, which requires public authorities to consider economic, social and environmental welfare in their services.
As the next industrial revolution accelerates, FEA urges governments to help build 'data-owned democracies' through national data strategies that focus on social value and the empowerment of people, communities and small businesses. I hope.
The report says the start-up and growth of businesses that empower working people and share wealth should be supported, and the Signalise sign language platform cooperatives and e-commerce platforms as businesses that decentralize ownership and control. Highlights Open Food Network UK, a co-operative of Increase value among users.
Finally, the plan will provide access to finance for mission-driven businesses, reform tax incentives to increase social and community investment, and encourage all businesses to extend their profits to the broader society. It recommends further support, such as the Better Business Act, which would require companies to align economic and environmental interests with environmental interests.
FEA chair Arvinder Gohil described the UK economy as “broken”, adding: “Nothing is going to work anymore – we are suffering from crisis after crisis and people are losing faith in our leaders to fix this – but this can be fixed.
“Millions of people across the UK work in mission-driven organizations that show us how to build stronger, fairer and greener economies. All we need is for those in power to realize the full potential of our movement so that more companies can put their mission front and center, and for this way of working to become the national standard. By working together, businesses can build an economy that benefits society as a whole.”
The presentation, held in Congress on March 7, included a panel discussion featuring politicians and FEA members. Lilian Greenwood, shadow minister for arts, heritage and civil society, said Britain's social enterprises continue to grow despite being “ignored by MPs, opposed by other forces and depleted of resources”. “It's amazing,” he said.
Mr Greenwood added: “In a mission-led Labor Government, every minister and every department will work with you and your organization to harness the power of social enterprise for social impact and national regeneration. I will try my best,” he added.
Josh Babarinde, Liberal Democrat candidate for Eastbourne and founder of social enterprise Cracked It, which provides work opportunities for young people at risk of crime in London, said 80% of people cited research from the Institute for Public Policy Research showing that they believe business is possible. Despite being key to changing communities and the environment, only one in five people believe that businesses are doing what it takes to achieve this.
“It's going to take a nudge from the government or, let's be honest, a big push from behind the scenes to get things back on track,” he said.
FEA members include Cooperatives UK, Community Energy England, Cwmpas, the EOA, Locality, Plunkett UK, Power to Change, Social Enterprise Scotland and Social Enterprise UK.
“We are part of a wider movement of mission-driven business and community power,” said Rose Marley, CEO of British Co-operatives. “Together we are stronger, and with government support, we can do more for people and the planet and repair broken markets and systems.”
FEA is currently running a campaign and crowdfunding campaign under the banner “Fix the Economy!” Funds raised will be used to fund creative campaign activities to attract leaders' attention in the run-up to the general election.
The campaign's crowdfunding page states that around 4 million people are employed in social enterprises, charities, B-Corps and democratic economies, and that “we have real strength in numbers and the campaign These are the numbers that need to be achieved.”
