London Communities Commission
We’ve had a big idea…
The London Communities Commission seeks to draw on the assets of all to improve the lives, and life chances, of people living in the most stressed neighbourhoods. Our 2018 report made recom-mendations as to how the unmet social and economic needs of London’s most stressed neigh-bourhoods could be addressed through local initiatives led by local partnerships, targeted to real need experienced by local people, and delivered by the community, in the community. We think that this model could be rolled out across the UK. The Commission believes that the corporate sector needs to play a more pro-active role and to in-vest meaningfully in stressed neighbourhoods across the UK, helping to build social and economic strength.
The Commission proposes that companies in the FTSE 100 and 250 issue a very small amount of additional shares to a charitable endowed Trust on behalf of these neighbourhoods. We aim to se-cure additional shares worth £1billion, which represents just 1/3000th of the current market cap of the FTSE 100 and 250. An endowment of £1bn would generate £30-40million per year. This would enable investments in neighbourhoods which have been identified using an independent set of criteria. Local partnerships, led by the community, will then develop and deliver their own local solutions.
The share issue proposal has been discussed in principle with many potential partners, including London First, the CBI, Business in the Community and the City of London Corporation, and has met with great interest as well as offers of help to put it in place. Our legal advice from senior corporate lawyers is that it can work provided that certain processes are followed. We are drawing together a group of businesses to take this forward. This group will be called the Percent Club.
We’re seeking a Development Director to take this forward
We are seeking to appoint a Development Director who will secure commitment from at least eight FTSE companies to issue 1/3000th of their share capital into an Endowed Trust for the benefit of stressed neighbourhoods across the UK, and to plan a campaign to persuade other companies to join. This is an opportunity for an outstanding individual with a track record in both the corporate and community worlds to shape our groundbreaking initiative and bring it to life. Playing a key role in bringing corporates on board, you will help to create a legacy for communities across the UK.
To apply: Please download the full recruitment pack below – the closing deadline is at midday on 22nd July 2019
LONDON COMMUNITIES COMMISSION: EBULLETIN PART ONE
Since we last wrote to you in late August there have been a number of important developments in the London Communities Commission’s work. This bulletin brings you up to date and invites you to become involved.
By way of context, at its last meeting the Commission agreed its Mission statement:
To improve the lives, and life chances, of those in economic or social need in London’s most stressed communities – and to help those communities thrive. The London Communities Commission wants to achieve this in a fresh way – one that builds on existing best practice, that is community-led, ensures greater local control over the allocation and use of resources and includes the direct involvement of local people and community organisations in the delivery of change to their areas. This approach specifically aims to challenge and change the sense of powerlessness currently experienced by many communities.
Unlike most Commissions, which produce recommendations for others to execute, the LCC is continuing to work on some of the key issues, before handing on to others. Our past work has led us to understand that, in this age of austerity, a major new approach is needed to support stressed communities. The question is – what form should this initiative take?
Our findings have led us to four simple but far-reaching conclusions.
1. Not all issues can realistically be addressed at once. The Commission believes that a targeted approach, focussing (in the first instance) on a limited number of the most stressed areas in London is the best approach. We call these areas Community Action Neighbourhoods (CANs) and we propose that 15 such areas across the city should be targeted initially.
2. Similarly, not all issues within those areas can be tackled at once. Our evidence shows, time and again, that local communities know best what is most urgent and important to them. We conclude that local communities should themselves therefore decide on their priorities – assisted, we believe, by community Anchor Organisations.
3. Our evidence has also led us to understand that communities lie at the heart of solutions, not of problems.Therefore we conclude that communities should lead on delivery, by agreeing programmes to address their priorities (through cross-sector Joint Action Teams involving private, public and community interests) and, wherever possible, they should directly implement projects themselves.
4. Finally, it is obvious from our findings that all of this will only be possible if there is a significant new resource to fund relevant programmes in the Community Action Neighbourhoods as well as to release local leadership, social entrepreneurism and sustainability. We believe that there is a key role here for the corporate sector – and our research shows that the sector is ready to welcome a new and strategic approach to social responsibility.
The Commission has developed its thinking on each of these four conclusions, as set out briefly below. We are asking for feedback, and further involvement in developing the next phases.
1. Priority Community Action Neighbourhoods -CANs
Earlier in the summer the Commission asked the GLA to help us to define London’s most stressed areas on the basis of four selected criteria: (bullets)
- Index of Multiple Deprivation 2015
- Numbers of Housing Benefit claimants (Feb 2017)
- Age UK Loneliness Index (derived from 2011 Census)
- Numbers of Pension Credit claimants (Nov 2016)
At its last meeting the Commission felt that the inclusion of two measures relating to older people was inappropriate and we agreed to ask the GLA to substitute one of those measures (the Loneliness Index) with one relating to Children in Low Income Families (2014). This has now been done (independently by the GLA Intelligence Unit) and the results are shown on the attached map. It is proposed that the first 15 CANs will be based on the areas shown in orange and red on the accompanying map. The precise boundaries will be drawn up on the basis of local knowledge and on further consultation.
We would welcome your comments on this draft list. Others to be consulted include London Councils, the Boroughs concerned, local CVS, Locality, Deputy Mayor for Communities (and officers), Big Lottery, NCVO, Others?
2. Anchor organisations are key
Our Mission statement emphasises the need for the community and voluntary sector to be at the heart of change in their areas. The key to delivering on this is through the establishment of an Anchor Organisation in each of the CANs. These could be an existing organisation that has the trust of local people, it could be a consortium of existing organisations that come together and agree a “first amongst equals” from their membership, or it could be that a new organisation would have to be built – accepting that this takes time. In order to help this process we agreed a “job description” for such Anchor Organisations. This is attached and, again, any comments on this would be very welcome. We are talking to Big Local and Locality about their experience in similar initiatives.
3. Strategic priorities and Joint Action Boards
The Commission discussed the thorny issue of what priorities should be addressed in the programme overall. The issue of what priorities should be set “top-down”and what should be agreed “bottom-up” has bedevilled programmes around community development and action for decades. Whilst there is no definitive “right” answer for all circumstances, we believe that a two-pronged approach will work best in the case of Community Action Neighbourhoods. In essence, the proposal is for the Commission (and its successor body, see below) to define four “over-arching” strategic priorities for the programme as a whole. They should be couched in general terms, allowing for local flexibility in interpretation whilst ensuring overall strategic coherence.
Based on evidence collected and further consultation within the sector as well as preliminary discussions with the Deputy Mayor, and accepting that the programme cannot deliver major investment in housing, transport or social care infrastructure (but will need to engage in decision-making locally in these fields), the four strategic priorities are:
- tackling poverty, including access to meaningful work,
- improving health,
- tackling discrimination and promoting integration (incorporating isolation and social inclusion),
- promoting greater local control over decision-making and implementation.
Within each of these priorities there will be a focus on the particular needs of young people. There will also be a fifth, but locally determined, priority – to address priority unmet local needs where they fall outside the four strategic priorities.
The concept is that within each CAN about 20% of annual programme money should be spent on each of the four strategic priorities – allowing for pragmatic flexibility – and the remaining 20% would be allocated by the Joint Action Team (JAT) to local priorities that fell outside the four strategic priorities. The JAT would be a representative cross-sector Team, chaired by the Anchor Organisation, who would also be the Accountable Body for finance and governance purposes. Within programme-design for each of the strategic priorities in their CAN, the JAT would invite projects to deliver on the four strategic priorities and agree those that best met their objectives. The programmes would be independently monitored and outcomes reported to the Commission’s successor body – the Trust, see Next Steps below. Whilst the detail will need further consideration, we are asking for comments at this stage on the basic approach, which we believe resolves the need for strategic coherence alongside local flexibility and accountability.
4. Resources and the proposed role of the corporate sector
The Commission is well aware that the ambitious approach outlined above will not be achievable without considerable new resources. The longstanding problems in these Neighbourhoods will not simply disappear overnight. Equally, we do not believe that merely throwing money at the problems is the answer.
One of the most interesting findings from the evidence put to the Commission was that the corporate sector told us they were keen to refresh and expand their role in terms of Corporate Social Responsibility – but only if there was some strategic coherence to what they were being asked to do, together with appropriate accountability and monitoring processes. The Commission has started to explore a fresh and ambitious approach with the corporate sector.
Little further progress can be made on other issues (1 to 3 above) – other than the informal consultation proposed in this Bulletin – until this resourcing issue is resolved. Otherwise false expectations may be raised.
In general terms the financial model is expected to involve the creation of an endowed Trust and the Commission is exploring:
- How resources might be transferred into such a Trust
- What form such a Trust might take
- The Trustee membership
- Accountability, including the principles set out above.
We hope to report back on progress early in the New Year in a further Bulletin. In the meantime we look forward to hearing your views on the proposals for Community Action Neighbourhoods, Anchor Organisations and Strategic Priorities
LCC November 2017
The following seven reports have been useful in developing our thoughts and recommendations. Although some are now 3 years old they remain relevant.
1. A Vision for Young Londoners, May 2015
‘Young people in London are
25% of the population
but 100% of its future’
Download the report by London Funders, London Youth and Partnership for Young London
2. Tackling the Housing Crisis: Oct 2014
alternatives to declining standards, displacement and dispossession
Download the report by Professor Marjorie Mayo and Ines Newman. Marjorie is spoke at the Summit, and Ines is helping to write up the recommendations.
3. People, Planet, Power: Feb 2015
Download the New Economics Foundation‘s proposals for a new social settlement.The new social settlement has three goals: social justice, environmental sustainability, and a more equal distribution of power. All three are intertwined and must be pursued together. We were delighted that NEF spoke at the Community Summit.
4. Whose Society? Jan2015
Download the Final Big Society Audit, produced by Civil Exchange
5. Local Early Action: How to Make it Happen: November 2015
http://www.neweconomics.org/publications/entry/local-early-action-how-to-make-it-happen In 2014 Southwark and Lambeth Councils set up the Southwark and Lambeth Early Action Commission to reduce demand for acute services and maintain wellbeing for all residents. The final report is written by NEF.
6. Changing London – A Rough Guide for the Next Mayor edited by David Robinson and Will Horwitz
This book is a compilation of the radical but practical suggestions of the people of London. The book argues that the capital needs a leader who can inform public opinion and articulate an ethical argument. A mayor who will listen to and speak up for those whose voices are seldom heard and little understood.
7. Community Capital: The Value of Connected Communities: Oct 2015
This report by the RSA argues that social relationships have a value. The activities and research presented in this report demonstrate that through working with communities this value can be grown by connecting people to one another in their local areas. The RSA argue that investing in interventions which build and strengthen networks of social relationships will generate four kinds of social value or ‘dividend’ shared by people in the community:
1. A wellbeing dividend.
2. A citizenship dividend.
3. A capacity dividend.
4. An economic dividend.
The London Fairness Commission has today published it’s Final Report, following the first inquiry into ‘fairness’ in the capital for 125 years. The release of the Final Report is will be marked by an event at the Deck of the National Theatre and will include a ‘job interview’ for candidates for Mayor of London.
The London Fairness Commission report considers a ‘ticking time bomb’ – how London’s future success will be undermined if current problems are not resolved – and presents recommendations, including ones relating to the cost of living and housing.
Chair of the London Fairness Commission, Lord Victor Adebowale commented:
‘London’s future success is at risk if we do not address the cost of living for modern day Londoners – costs, such as housing, transport and childcare, are higher in London. Londoners on average salaries spend nearly half their pay on rent, compared with a quarter for those on average salaries outside the Capital. While Londoners do earn more on average, that extra sum goes nowhere near bridging gap. There is now a danger that London will become a playground for the super-rich, a treadmill for the middle-classes and a workhouse for the poor.’
London is a global city, yet compared to other cities of its standing the cost of living in London is high. Londoners on average salaries spend 49% of their pay on rent, compared with 26% for those on average salaries outside the capital. The average extra costs for householders who are renting and using childcare is £6,000. Would-be homeowners in London need to earn £77,000 a year to get on the housing ladder. Across the UK, a first-time buyer needs a minimum income of £41,000.
The London Fairness Commission’s recommendations include:
- Immediate introduction of a London minimum wage of £9.70
- The Mayor should delay issuing the Freedom Pass from 60 to 65 years and means test it
- Action to make employers help more with childcare costs
- Public disclosure of pay ratio data from companies and public sector bodies based in London
- Ensure that companies registered offshore declare details of property ownership
- The Mayor of London to be given powers of compulsory purchase on land/properties owned by offshore companies who are unwilling to declare the name of the ultimate beneficial owner
- Suspension of right to buy for five years while supply is increased and provide a portable discount for those who have lived in social housing for 15 years
- Reduce or control the average cost of letting agents’ fees and charges
Set ‘affordable rents’ to 30% of household income rather than 80% of market rent
- Tax land owners in London with planning permission for new homes who refuse to develop their land for longer than 3 years.
The London Fairness Commission would also like to see the start of a new ‘philanthropic age’ and believes that the time is ripe for London’s wealthiest residents and businesses to come together in an exemplary social philanthropic effort – a ‘Peabody’ moment for the 21st Century.
This is the first time in 125 years – since Charles Booth mapped the levels of wealth and poverty across London in 1889, coining the phrase ‘the poverty line’ in the process – that a special commission has analysed the ‘fairness’ of London.
“LCC Launches first report of evidence
The evidence gathered by the London Communities Commission from leading London community practitioners is set out in this report. The evidence will inform a series of policy papers to be published over the next three months by the Commission. See here for the LCC report of evidence.”