A two-tier financial system now exists in the UK, says Fionn Travers-Smith
Finance Archives - NewStart
Alternative finance – crowdfunding, community shares and peer-to-peer lending – is increasingly playing a role in local economic development. New research by Mark Davis and Tim Braunholtz-Speight from the Bauman Institute in Leeds assesses the potential of decentralised finance.
Although further devolution of tax and spending power is to be welcomed, a system limited to the fiscal devolution of business rates alone has significant limitations.
In the coming years, we will have to confront a series of troubling questions about our over-centralised economy, and the result may be a radical shift in the way we spend public money.
There’s growing acceptance of the fact that sending legions of support workers into a troubled community can confuse, not cure, the social ills that beset them. The Charles Burrell Centre is an example of just how effective it can be to start with the people and work out.
Narrative seems key to building a consensus for action. Dominant economic narratives can be easy to tell; from Tesco-isation to political nostalgia for a past. But how do we tell, coherently, the story of an alternative grassroots-driven economy? We need simpler narratives.
As the Smith Institute’s latest booklet ‘Britain for sale? Perspectives on the costs and benefits of foreign investment’ argues, the UK’s growing reliance on overseas investment is far from risk free.
There is no doubt that households need to be supported to save. Around one in five low income adults have no savings, a figure that has risen significantly since 2011 as real wages have stagnated; the use of zero hours contracts have increased, and welfare benefits cut.
The same spirit of progressive social change; the energy of impassioned social action; and the intelligence of evidence-based argument and action alongside emotional reaction can serve the voluntary and community sector well for the next five years.
There’s a real opportunity for us to work collectively to establish Newcastle as a leading city, one that delivers economic growth sustainably and is willing to experiment in delivery.