New report reveals £1.7bn boost from All Neighbourhoods Thriving fund

As we launch our new report with Frontier Economics on the All Neighbourhoods Thriving fund, Local Trust’s chief executive, Rachel Rowney, breaks downs the economic benefits and national impact this could have.

In my 13 years at Local Trust, I have witnessed time and again how investment in social infrastructure can transform disadvantaged communities.

I have seen local fitness programmes dramatically improve the mental and physical health of hundreds of residents. I have seen youth clubs get teenagers off the street and on the path to fulfilling careers. And I have seen how a single green space, with a little bit of investment and a few community-minded people, can transform residents’ feelings about the area they call home.

From the initial £500m, [the fund] projects a return of £1.7bn — brilliant value for money at a time of enforced fiscal restraint.”

The return on investment in social infrastructure

To anyone close to these projects, their value is clear. But measuring this value, especially in financial terms, isn’t always easy.  

 That’s why four years ago we partnered with Frontier Economics on a report exploring the economic return of investments in social infrastructure. Our joint paper, which evaluated decades of academic research, found that for every £1m invested in community assets and projects, there are returns worth £3.2m — including a £0.7m boost in employment, skills and training opportunities for residents.

Today, we’re excited to publish an update to that 2021 paper, focused specifically on our proposed All Neighbourhoods Thriving (ANT) fund — the centrepiece of our recent submission to the government spending review. If approved, the ANT fund will earmark £500m for community-led grants in doubly disadvantaged neighbourhoods, thereby advancing each of the government’s five missions.

Our new paper casts light on the economic boost that such an investment would bring. From the initial £500m, it projects a return of £1.7bn — brilliant value for money at a time of enforced fiscal restraint.

Group at youth voice event in Heston West Big Local

Where would we see the benefits of the ANT Fund?

Our projections are based on data from over 100 quality research papers. And while that £1.7bn figure is impressive, it is conservative. Our strict methodology excluded hard-to-measure economic benefits that accrue over the long term. Even so, we found an estimated return on investment of £3.50 for every £1 spent on social infrastructure in disadvantaged neighbourhoods.

These mainly derive from the effect of social infrastructure on the following areas:

• Economic activity – Multiple studies report that investment in community assets and community-led regeneration fuel local spending and job creation.    
• Health and wellbeing – A wealth of evidence shows social infrastructure is one the best mechanisms for improving people’s long–term health and happiness. Programmes similar to the ANT fund have had brilliant results in this area. For example, the national Red Cross Social Prescribing service, aimed at preventing loneliness, reports a return on investment of £3.40 for every £1 spent. A social prescribing programme in Calderdale was correlated with an average reduction of four GP contacts per year, per patient.
• Crime reduction – Similar programmes have reported lower crime rates and an improved sense of safety and security among residents as a result of social infrastructure investment. Our 2021 paper found that investments in youth services and other programmes aimed at improving the social and economic status of young people yielded returns of £3.20 for every £1 invested.  
• Fiscal benefits – Our evaluation of quality studies suggests an ANT fund would lead to savings, nationally and locally. Investments in social infrastructure are clearly associated with fewer and lower benefit claims and an easing of pressure on health and criminal justice systems.  

Our paper doesn’t account for harder to quantify benefits such as social cohesion, quality of place, civic engagement and environmental improvements. Yet, these benefits are not to be underestimated. In the current straitened economic climate, decision-makers must avoid the trap of assuming something is of little value simply because that value is difficult to define. Quality spaces and high levels of civic engagement are integral to the long-term success of any place. The ANT find would support these things, too.

Social infrastructure is exactly the kind of low-cost, high-impact investment that the government should prioritise at a time like this.”

A priority investment for the government

When we published our 2021 paper with Frontier Economics, ‘Levelling Up’ was top of the political agenda and the ongoing COVID-19 pandemic was making clear, every day, the value of infrastructure of all kinds. Today, the government faces a different kind of challenge as it tries to launch a bold agenda against a backdrop of financial restraint.

Social infrastructure is exactly the kind of low-cost, high-impact investment that the government should prioritise at a time like this. I’ve seen that over almost a decade and a half delivering Big Local. And now we have the figures to further back it up.

Find out more and download the report.