Governments and councils focus too narrowly on retail operations when developing policies for the local economy.
The local economy is not simply a cold economic calculation based on population, employment and productivity. To function, a healthy, supportive community is needed. This requires investment in the social infrastructure that fosters contact, mutual support, and collaboration. This includes libraries, leisure facilities and green spaces.
Suitable housing, which individuals and families can afford, underpins the local economy. Scotland’s persistent health inequalities also undermine the local economy, along with a poor environment and inadequate transport links. We should support low-traffic neighbourhoods and the ‘15-minute city’ concept, although these should be co-designed with the local community. Colleges can be the anchor institutions working together with schools and early years learning. Public services should be organised in community hubs that facilitate joined-up provision.
We must reform local government finance by devolving revenue-raising powers. Communities need the ability to finance the essential support to the economy in a way common elsewhere in Europe. We set out how this can be done, along with digital and wealth taxation.
A strong local economy needs a strong local democracy - a place where local people and businesses have a real say in how the community is organised and resources allocated. Devolution has stopped at Holyrood, and local services have been centralised. We still have some of the largest basic council units in the world. Getting more local people involved in the governance of our lives will help to drive the local economy forward.