CLES and Preston City Council report that the share of anchor procurement spent in Preston rose from 5% (2012/13) to 18.2% (2016/17), and in Lancashire from 39% to 79.2%.[1]
Preston model of community wealth building
Since about 2013 Preston City Council and other local anchor institutions have redirected procurement, employment and investment toward local suppliers and ownership forms, drawing on Cleveland's Evergreen experience. Causal effects remain debated.
- Location
- Reference point: Preston city centre
- Operating since
- 2013
- Governance
- Hybrid
- Legal status
- Recognised
- Economy
- Mixed
- Autonomy level
- Program within an existing state
- Uses AI in governance
- No
After the £700 million Tithebarn regeneration scheme stalled, Preston City Council worked with the Centre for Local Economic Strategies (CLES) from 2011–13 to adapt community wealth building, informed by Cleveland's Evergreen work. Anchors including the City and County councils, UCLan (from 2014), Community Gateway, two colleges and the police and crime commissioner's office analysed their spending. A 2013 analysis of about £750m found 5% was spent in Preston and 39% in Lancashire; CLES reports 18.2% and 79.2% for 2016/17. The Council became a Living Wage employer (2012); the Lancashire pension fund has allocated £100m to Preston and South Ribble. Outcomes are debated: a 2025 study estimated an employment gain of about 4%, while Demos (2019) found the evidence on localist procurement too thin to be conclusive.
Timeline
- 2011Preston City Council begins conversations with CLES about using local spending and supply chains for local benefit. [S1]Established
- 2012The Council becomes the first Living Wage Foundation accredited local authority in northern England; Ted Howard of the Democracy Collaborative visits. [S1]Established
- 2013Anchor spend analysis: of £750m collective spend, 5% is in Preston and 39% in Lancashire; the Council engages CLES to apply community wealth building. [S1]Established
- 2014UCLan joins the anchor-institution group; it later facilitates exchange with Mondragon. [S1]Established
- 2017The 2016/17 analysis reports 18.2% of anchor spend in Preston and 79.2% in Lancashire. [S1]Established
- Jun 2019Demos review finds correlation with Preston's improvement but insufficient evidence that localist procurement alone drives it. [S3]Established
- May 2025A peer-reviewed difference-in-differences study estimates employment gains of about 4% in Preston. [S2]Established
Mechanisms in use
Outcomes & controversies
Programme figures show a higher share of anchor procurement staying in Preston and Lancashire. A 2025 difference-in-differences study estimates employment about 4% higher, with caveats about unobserved confounders; Demos found localist procurement evidence too thin to confirm effects.
Claims
A 2025 difference-in-differences study of Annual Population Survey data (2011–19) estimated employment in Preston rose about 4% relative to comparison areas (95% CI 2.4–5.7%), with larger gains for some groups.[1]
Demos (2019) found Preston's employment, wage and productivity indicators correlated with the model but could not conclude that localist procurement itself keeps wealth local, calling the evidence base too thin.[1]
The approach grew from 2011–13 conversations between the Council and CLES that drew on Cleveland's anchor-institution work; UCLan later facilitated learning from Mondragon, leading to a Preston Co-operative Development Network.[1]