New research by Local Trust and Frontier Economics outlines that the Government can reap £1.7bn of economic rewards by spending less than a third (£500m) on community-led grants in doubly disadvantaged neighbourhoods.
‘The impacts of scaling social infrastructure investment’ is an update from our 2021 analysis report ‘The impacts of social infrastructure investment’ with Frontier Economics. It shows how Local Trust’s proposed All Neighbourhoods Thriving (ANT) fund would be a transformative use of public funds at a time of enforced fiscal restraint, supporting the case made in our submission to the government’s ongoing spending review, urging investment in social infrastructure.
If the fund is approved, it could lead to the government reaping an economic return of £3.50 for every £1 spent, by investing in doubly disadvantaged neighbourhoods – those which have high material deprivation and a lack of social assets such as leisure centres.
We argue the ANT fund is the missing link in the regeneration pipeline for England’s most disadvantaged areas. This one-off investment by the government will reap long-term economic growth and address deep-seated social issues in some of the most deprived areas in England. It will fuel local spending and encourage job creation, improve people’s long-term health and happiness, lead to a reduction in crime as well as see significant fiscal savings including lower benefit claims and an easing of pressure on health and criminal justice systems.
The true economic benefit could, however, be even higher, suggests our chief executive, Rachel Rowney: “While that £1.7bn figure is impressive, it is probably a conservative estimate. Our projections excluded hard-to-measure economic benefits that accrue over the long term, so the true economic benefit is probably even higher.”
Rachel outlined the importance of the ANT fund:
“In today’s difficult financial climate, social infrastructure is exactly the kind of low-cost, high-impact investment that the government should be prioritising. In my 13 years at Local Trust, I have witnessed time again how investment in social infrastructure can transform disadvantaged communities. We know that fitness programmes dramatically improve the mental and physical health of entire communities and how youth clubs can get teenagers on the path to fulfilling careers. This report shows the tangible value of such programmes.”
Other key points the report makes are:
- Social prescribing can reduce health service costs and therefore provide fiscal savings.
- Non-monetised benefits include improved social cohesion, quality of place, civic engagement and environmental benefit.
You can read the report, The impacts of scaling social infrastructure investment, by Local Trust and Frontier Economics here. Also, read Rachel Rowney’s blog accompanying the report here.
For more information or to arrange interviews, please contact ben.jackson@localtrust.org.uk