“The infrastructure of everyday life” – has the time come for the foundational economy?

The last few years has seen growing interest in what has been termed the ‘foundational economy’ and its potential value for achieving economic security and social sustainability. Accounting for around 44% of UK employment, it has been argued that supporting this section of the economy could ultimately improve productivity. And the current pandemic has placed even more emphasis on the importance of the foundational economy – the part of the economy that cannot be shut down.

What is the foundational economy?

The foundational economy provides universal basic services built from the activities which provide the essential goods and services for everyday life, regardless of the social status of consumers. Primarily delivered locally, these goods and services encompass infrastructures, utilities, food, retailing and distribution, education, health and welfare. Because of this, it is thought to have considerable potential to regenerate the areas where the local economy is relatively weak – perhaps the perfect solution for the levelling up agenda?

The initial manifesto for the foundational economy from researchers at the University of Manchester resulted from dissatisfaction with generic industrial and regional policy focused on promoting competition and markets; with success measured in terms of job creation and GDP growth. According to the manifesto, the foundational economy is “the mundane production of everyday necessities” which is taken for granted by all members of the population. As such, it is often also referred to as the ‘sheltered’ or ‘invisible’ economy.

Scale and value

In providing the infrastructure for everyday life, the foundational economy is also very large. It has been noted that in all European countries, it directly employs around 40% of the workforce. In the UK, around 44% of the workforce is employed in foundational activities. In Germany, it is 41% and Italy it is 37%. The value of foundational output and volume and diversity of foundational employment is therefore much larger than in high-tech and tradeable services, with which policymakers are determinedly focused on.

Other measures of value have also been highlighted, such as household expenditure. The initial manifesto notes the importance of weekly spend on the foundational economy with nearly 30% of all household expenditure going on foundational activities.

Despite providing vital services, and employing a significant portion of the UK population, the foundational economy is marked by low-tech, low-wage, part time and often precarious employment and is potentially at risk from automation, despite the significant ‘human’ element to many of the different job roles which make up this part of the economy. Within society a lot of foundational jobs are still considered by many (often who don’t work in the sector) to be “jobs you move on from” where in reality, for many people, particularly women and migrant workers, this isn’t the case.

But where would we be without these roles providing for all citizens’ basic needs? Job creation and GDP growth may suggest a successful economy but this, it is argued, does not show the wellbeing of all society or sustainability. In the face of current, and indeed future, crises, it seems perceptions may be starting to change as more and more people become concerned with health and wellbeing and the environment. Indeed, it has long been argued that necessity is only recognised in times of crises.

Has Covid-19 shone a vital light on the foundational economy?

While many sectors were shut down due to the coronavirus pandemic, the foundational economy remained open as it was considered systemically important for meeting basic needs. The pandemic has highlighted that this part of the economy is needed at all times, including at times of crisis.

Healthcare staff have become frontline heroes and food delivery drivers are recognised as key workers. But this enhanced status has also highlighted the poor pay and conditions of many key workers delivering these essential goods and services and the inherent inequality that exists in society.

Just like other crises, from natural disasters to large scale economic shocks, these bear most heavily on the poor and vulnerable. The pandemic has shown that these inequalities must be addressed so that basic everyday services are more equally available.

The pandemic has also shown that economies are about more than market economies. It has been argued that there needs to be a move towards meeting a population’s basic needs rather than on individual consumption.

Way forward

Advocates of the foundational economy argue that public policy should focus on securing the supply of basic goods and services for all citizens in a socially responsible way.

The 2020 manifesto for the foundational economy from The Foundational Economy Collective argues for the renewal of the foundational economy with a ten-point programme, including proposals related to:

  • better health and care
  • housing and energy
  • food supply
  • social licensing
  • tax reform
  • disintermediation of investment from pension funds and insurance companies
  • shorter supply chains in foundational commodities
  • citizen engagement
  • better technical and administrative capacity at all levels of government
  • international constructive responsibility

It has been widely agreed that a return to business-as-usual approach following the pandemic is not the way forward and that there needs to be a shift in economic policies in order to achieve a more socially and economically just society. Perhaps if such policy change is achieved, a more balanced economy that provides a good quality of life for all can eventually be realised.


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Creating inclusive, prosperous places to live

by Heather Cameron

What does quality of life and ‘a good place to live’ mean? What are the key challenges to ensure quality of life in cities today? How can we create better places to live and who needs to be involved? These were just some of the questions explored at a seminar hosted by Policy Scotland, Glasgow University’s research and knowledge exchange hub, last month.

Running the event was Dr Georgiana Varna, Research Fellow at Glasgow University. Georgiana is a multidisciplinary scholar, specialising in urban regeneration and public space development.

Cities back on the agenda

A particular emphasis was placed on the importance of both place and people. Georgiana noted that cities are very much back on the policy agenda as we try to fix the mistakes of the 60s and 70s. She alluded to the New Urban Agenda, which embodies three guiding principles:

  • Leave no one behind
  • Achieve sustainable and inclusive urban prosperity
  • Foster ecological and resilient cities and human settlements

Following Georgiana’s introduction, several short presentations were given by a range of professionals and scholars.

Speaker: Michael Gray, Housing and Regeneration Services, Glasgow City Council

Michael Gray of Glasgow City Council delivered the first of the presentations, focusing on the Commonwealth Games Athlete’s Village in the East End of Glasgow. There was a clear pride in what they achieved with a belief that the result is a sustainable, cohesive community.

Michael did allude to some concerns that have been highlighted by GoWell East surveys regarding speeding vehicles, lack of buses and lack of local retail. But he also noted that lessons have been learned from the project, which was very complex in terms of procurement, design and construction, and that future development is addressing such concerns.

Speaker: Keith Kintrea, Glasgow University

Keith referred to Scotland’s standings in the PISA survey, showing that maths, reading and science achievement in Scotland sits in the middle and ahead of England, despite their efforts to improve. However, he noted that there is no room for complacency as those children in the most deprived areas were less likely to do well – nearly 70% of Glasgow pupils live in the most deprived areas.

Again, the importance of neighbourhood/place was emphasised, this time for local educational outcomes. It was noted that while Scottish schools are less segregated than the rest of the UK and more inclusive according to the OECD, (similar to countries such as Finland), this is not necessarily the case in cities. Keith concluded that we need to do much more about what places do in terms of educational outcomes.

Speaker: George Eckton, COSLA/SUSTRANS

George highlighted the importance of transport for delivering social, economic and environmental initiatives, and for growth in city-regions. Inequality in social mobility was put down to inadequate transport and it was noted that many people are disadvantaged in the labour market due to lack of mobility.

He stressed the need to increase the use of sustainable transport and argued that a collaborative approach will be essential to create inclusive growth for all.

Speaker: Andy Milne, Scotland’s Regeneration Network

Andy focused on community regeneration, arguing that the issue of centralisation and decentralisation is crucial. He stated that as a result of centralisation, urban areas – where most of the population live – are vastly under resourced.

Interestingly, he also noted that regeneration doesn’t work when not all areas are addressed. He argued that successful growth and inclusion will depend on economic policy decisions and not on all the small actions taken to address inequality.

Speaker: Richard Bellingham, University of Strathclyde

Richard’s focus was on smart cities. He noted that cities rely on critical systems – food production, waste/water handling, transportation, energy systems, health systems, social systems – and that if any one of them fails, the whole city fails.

The issue of rapid growth was emphasised as something cities need to respond to in a smart way. The recent 50-lane traffic jam experienced by Beijing suggests that there was a lack of smart thinking in its approach of building more roads for more people.

Richard suggested that greater collaboration is required for smart cities to succeed.

Speaker: David Allan, Scottish Community Development Centre & Community Health Exchange

The final presentation focused on community development. David highlighted the importance of community development approaches to build healthy and sustainable communities and referred to four building blocks of community empowerment:

  • Personal development
  • Positive action
  • Community organisation
  • Participation and involvement

Two examples of successful community-led initiatives were presented: Community Links (South Lanarkshire) and Getting better together (Shotts Healthy Living Centre).

Key elements of these initiatives were identified as: community-led, responsive to community need, fair and inclusive, and flexible and adaptive. Challenges were also identified: the level of understanding of ‘community’, community ‘stuff’ is often seen as nice but not essential and there is a lack of capacity and supply at the local level. David also noted that there is a danger that city-regions may exacerbate existing inequalities by concentrating resources in powerhouses.

He concluded by noting that future cities are unlikely to look like something from Back to the Future. Rather, they will probably look very much like today but the underlying systems need to change.

‘Smart successful cities – distinct, flexible and delightful (great places to be).’


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Is 20 plenty? The evidence for lower speed limits

20mph

Image from Flickr user Edinburgh Greens via Creative Commons License

By Donna Gardiner

This week (18-25 May) it’s Walk to School Week – where parents and children are encouraged to leave the car at home and experience the benefits of walking to and from school.

The campaign is particularly important given recent evidence which suggests that the number of children who walk to school is falling. The most recent Department for Transport National Travel Survey found that only 42% of children walked to school regularly in 2013, compared to 47% in 1995/97. Indeed, Britain has one of the lowest levels of children walking or cycling to school in Europe.

A recent YouGov survey of 1,000 parents of five- to 11-year olds in Great Britain found that speeding traffic was the main reason that parents no longer let their children walk to school. In particular, 39% felt that school-run traffic was dangerous. Almost two-thirds reported that they would like to see car-free zones outside both primary and secondary schools, as well as 20 mph speed limits in surrounding areas.

20 mph limits and zones

The introduction of 20 mph speed limits and zones has received widespread interest of late, with a number of large schemes, such as the one planned in Edinburgh, capturing the headlines. The Edinburgh scheme is particularly notable for its scale. It covers over 80% of the city’s roads – effectively making 20 mph the default speed for all of its urban areas. Implementation is due to start in late 2015.

At the other end of the UK, the London Borough of Hackney has this week begun the rollout of its own 20 mph scheme, through which more than 99% of the borough’s roads will become subject to 20 mph limits by October 2015.

The Edinburgh and Hackney schemes join a host of others across the UK, including those in inner London, Liverpool, York, Bath, Bristol, Manchester, Newcastle, Brighton, Oxford and Glasgow.

Support for further implementation

Numerous campaign and road safety groups have called for the greater implementation of 20 mph zones and limits across the UK, including the Royal Society for the Prevention of Accidents (RoSPA), Sustrans, the Campaign for Better Transport, CTC – the national cycling charity, 20’s Plenty for Us, The Slower Speeds Initiative and the European Transport Safety Council (ETSC).

The UK Government have also shown support for the wider implementation of 20 mph zones and limits. In 2013, they published revised guidance to make it easier for local authorities to implement 20 mph limits and zones in their areas, and earlier this year, new guidance which further supports 20 mph limits was published by Transport Scotland.

There is also clear evidence of the public’s desire for lower speed limits. A recent YouGov survey found that the majority of respondents supported the introduction of 20 mph speed limits in residential streets (65% support or strongly support) and busy shopping areas and busy streets (72%). Improved road safety and children’s safety were the key reasons for this, along with other reasons – such as making our streets more pleasant to live in, encouraging more walking and cycling, reducing noise and improving the quality of life.

The YouGov survey echoes the findings of the British Social Attitudes Survey 2013, which found 68% of people to be in favour of 20 mile per hour speed limits in residential streets.

Talking of the Hackney scheme, Cllr Feryal Demirci, Cabinet Member for Neighbourhoods and Sustainability, Hackney Council neatly summarises the anticipated benefits of 20 mph zones:

“We strongly believe this 20 mph rollout will be better for everyone. It will mean a safer, calmer and more liveable neighbourhoods for all residents, leading to more walking, cycling and playing outside, which in turn will have a positive impact on health and the community.”

Evidence of the benefits

But does the evidence support these anticipated benefits?

One of the most commonly cited benefit of lower speed limits is improved road safety, resulting from a reduction in the number and severity of collisions. There is widespread evidence that this is the case – for example, research published in the BMJ in 2009 concluded that 20 mph zones were effective measures for reducing road injuries and deaths. Specifically, their introduction was associated with a 41.9% reduction in road casualties, with the effect being greatest in younger children and for the category of killed or seriously injured casualties.

Similar findings have been reported elsewhere, for example, in a review of evidence reported to the London Road Safety Unit, in research by the DfT and by the SWOV Institute for Road Safety Research.

There is also evidence that lower speed limits may help to tackle health inequalities. This is because children and young adults are more at risk of road traffic accidents within poorer localities than in richer urban neighbourhoods. Indeed, in January 2014, Danny Dorling, Halford Mackinder Professor of Geography at the University of Oxford, went as far as to claim that implementing 20 mph speed limits was the main way in which local authorities could effectively improve the health of the local population and reduce health inequalities.

Similarly, research published in the Journal of Public Health in 2014 reported that targeting 20 mph zones in deprived areas may be beneficial. It also concluded that “20 mph zones and limits were effective means of improving public health via reduced accidents and injuries”.

Improved public health is another often cited benefit of lower speed limits. Evidence from Bristol and Edinburgh demonstrates that 20 mph zones do indeed encourage increased levels of physical activity, including walking and cycling, and there is also evidence that they improve resident quality of life, through increased opportunities for social interaction and less noise and air pollution.

The reduced levels of pollution also mean that lower speed limits can be better for the environment.

Finally, there is also some evidence that 20 mph zones may result in increased local economic activity – with improved walking environments having many potential benefits for local business. Research conducted by Living Streets in London also found that pedestrians tended to spend more than those arriving by car.

Driver concerns and attitudes

Despite the evidence in their favour, 20 mph zones are not always welcomed with open arms. There remain a number of concerns about the implementation of 20 mph zones, including fears that they may lead to increased levels of congestion, increased carbon emissions, suffer from a lack of enforcement, increase journey times, and increase emergency response times.

Most of these concerns have been countered by research evidence; however, attitudinal barriers remain. In an analysis of a YouGov survey of public attitudes towards 20 mph zones, Professor Alan Tapp of UWE Bristol, reports that a sizable minority of people (31%) claim that ‘If a 20 mph speed limit is introduced, I may not stick to it’. He also points out that 49% felt that ‘It is just too difficult to stay at 20 mph’ and almost a third of people (30%) thought that 20 mph is an example of a nanny state.

The way forward

So despite the progress that has been made, there is clearly still some way to go before 20 mph limits and zones become a fully accepted part of UK towns and cities. Implementing more 20 mph limits is only the start – it seems that there is also a need for local authorities to tackle the negative perceptions of 20 mph zones held by many drivers in order to ensure that 20 mph limits are adhered to in practice.

Sharing evidence of the positive benefits of 20 mph zones and demonstrating that many of the main concerns associated with them are ill-founded is likely to play an important part in encouraging more positive attitudes, changing driver behaviour, and in turn, make streets safer and more enjoyable for children and adults alike.


 

The Idox Information Service can give you access to further information on improving road safety. To find out more on how to become a member, contact us.

Further reading:

Addressing health inequalities: five practical approaches for local authorities (Perspectives in Public Health, 2014)

Reducing unintentional injuries on the roads among children and young people under 25 years (Public Health England, 2014)

Road safety and public health (The Royal Society for the Prevention of Accidents, 2014)

Achieving safety, sustainability and health goals in transport (Parliamentary Advisory Committee for Transport Safety (PACTS), 2014)

Unlimited aspiration for a calmer city (speed limits) (Local Transport Today, 2011)

Sign of the times (20 mph speed limits in Portsmouth) (Parking Review, 2010)

Review of 20 mph zone and limit implementation in England (Department for Transport, 2009)

Who pays for parks? Are ‘green benefit districts’ the answer?

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Southwark Park, London. Photograph: Mike Faherty. Licensed for reuse under a Creative Commons License

The benefits of urban parks are well told. Quite apart from their environmental impact, green spaces really do make a difference to our quality of life: from health to housing, community cohesion to crime prevention, city parks generate spin-offs extending far beyond their green acres.

They also cost money. Even before the economic crisis of 2008, the Commission for Architecture and the Built Environment was highlighting the challenges of maintaining urban parkland:

“We risk a never-ending cycle of large areas of poor quality urban green space that are restored with public money, then decline, then need more public investment to restore them to a good standard.”

In the age of austerity, those challenges have intensified: between 2010/11 and 2012/13 local authority spending on open spaces in England was cut by an average of 10.5%. Now, more than ever, local authorities have to think more imaginatively about sources of revenue and capital funding for urban green spaces.

Last summer, the Policy Exchange think tank came up with some ideas for attracting more money to maintain urban parks. These included:

  • extending the Gift Aid scheme to community civic improvement groups;
  • requiring new green spaces to include a long term funding plan;
  • allowing communities and local authorities to apply for funding to employ park keepers in those spaces identified as crime hotspots.

The report also encouraged the idea of green benefit districts. Also known as park improvement districts, these are urban parks, gardens, and green spaces whose upkeep is funded in part by a tax on nearby residents.

It’s an approach that echoes the concept of business improvement districts, defined areas where participating businesses pay a levy for security, landscaping and other improvements to their trading environment.

Some communities in San Francisco are already exploring the idea, teaming up with housing developers to establish a green benefit district that aims to protect and enhance 25 small parks, community gardens and ad hoc recreation spaces.

In the UK, green benefit districts might prove to be a harder sell. Many people feel that they are already contributing quite enough for the maintenance of parks through the council tax, and the Policy Exchange report stressed that the idea would not be appropriate in deprived areas.

But the authors suggested that home owners living near parks might be persuaded to pay more for amenities that raise the value of their properties.  An analysis of price increases of homes in south London before and after a £2.7m regeneration of Southwark Park revealed a significant increase in prices of properties located within 100m of the park. The report could not conclude that this increase was due to renovation of the park, but suggested that the link between green space quality and property prices was worth further investigation.

The green benefit districts idea has received a cool response from coalition ministers, who suggest that cutting waste and inefficiency in local government is preferable to additional taxation. But, with the prospect of councils’ budgets being squeezed further in the coming years, the idea of green benefit districts might well take root.


 

Further reading

The Idox Information Service has a wealth of research reports, articles and case studies on urban green space. Items of interest include:

The contribution of green and open space in public health and wellbeing

Future parks (Birmingham City Council seeking NHS funding for upkeep of parks)

Time to re-think parks (innovative income generation for public parks)

Park land: how open data can improve our urban green spaces

Rethinking parks: exploring new business models for parks in the 21st century

N.B. Abstracts and access to subscription journal articles are only available to members.

Love Parks Week: shouting out for green spaces

bluebell fairylandby Laura Dobie

This week is Love Parks Week (25th July-3rd August), an annual campaign to raise the profile of local parks and green spaces. The initiative, managed by Keep Britain Tidy and Love Where You Live, began in 2006 with the aim to encourage people to visit and take a pride in their local parks and highlight their vital contribution to healthy, happy and strong communities.

The campaign has been growing year on year, and last year there were 1,100 events across the country, with approximately 1.4 million participants. The quality of green spaces is an important concern for the campaign, and its Park Health Check questionnaire invites people to rate the quality of their local green spaces and contribute to a report assessing the health of the nation’s parks. With listings for a variety of events across the UK, and promotional materials available to help people to promote events in green spaces in their communities, it is clear that Love Parks Week is raising awareness of parks and green spaces and making the case for continued investment in these places in the face of funding constraints. Continue reading