Gdansk Smart Metropolis Congress

Liz Maguire

24th October 2014

Local Authorities as “doers and “enablers of Social Innovation

• Brief overview of Glasgow

• Why would a Local Authority be Socially Innovative?

• Examples of Glasgow as a doer and enabler of Social Innovation and understanding the contexts/drivers.

• What next for Social Innovation

Glasgow – an overview

Facts Issues and Challenges

• Scotland’s largest City (pop 600,000)• Largest Local Authority – Budget 2.4 billion• Young Population – 68% of working age with an average

age of 35• Generates £17 billion GVA to the Scottish Economy

every year.

• Challenges: jobs growth, persistent unemployment, poverty and reducing financial resources

• Re-inventing itself and trying to remain competitive

Social Innovation – Why and by Whom?

• Need to meet the needs of the City and its residents

• Local Authorities do not have all the answers/solutions or mechanisms to meet need.

• Social Innovation provides the opportunity for new mechanisms and creative successful solutions.

• All stakeholders, big and small, have a role to play and contribution to make to foster and encourage social innovation.

Glasgow – Enabling Social Innovation

Problem or Opportunity

Long Term Unemployed

Damp HousingGovt TrainingScheme

Heatwise

• An ILM Training Scheme improving energy efficiency in tenants homes

• Rate for the Job with real skills• Council funded core staff costs and materials• Govt funded training costs via MSC programme and able

to secure EU funding which the Council could not.

• Succesful model which led to other sectors e.g Landwise, Treewise etc

• 30 years later, consolidated to the WISE Group with a multi million pound turnover and 360 plus staff

Need to borrow

No bank account So can only

access expensivecredit

No Money

Scotcash

• Established as a Community Development Finance Initiative (operates as a Community Interest Company)

• Founding Members Glasgow City Council, Glasgow Housing Association and Royal Bank of Scotland

• Provides affordable credit and able to assist people to open basic bank accounts.

• Since opening in 2007 they provide loans of approximately £1 million every year and have opened around 5,500 basic bank accounts

• Glasgow City Council support to enable it to happen, was by providing an initial £570,000 for the loans.

Glasgow - Doing Social Innovation

The Problem with Housing

• Legislative Constraints

• For every £1 of rent around 57p paid to service debt

• 43p left for housing management and repairs

• 2+2 = 7 The figures did not add up

• Housing stock decline and higher rents

Housing Stock Transfer

• Agreed transfer all Council housing stock to a newly created Housing Association

• This would enable Central Government to write off the Housing Debt.

• All tenants balloted on stock transfer – which was supported

• Glasgow Housing Association created in 2003 biggest Housing Association in Scotland

• Spent £1.2 billion modernising and improving 70,000 homes

• Now expanded to form the Wheatley Group

Encouraging Saving – Fighting Pay Day Lenders

Pay Day Lenders

A preventative approach

• Encourage saving at an early age• All First year secondary pupils encouraged to open a

credit union account• Council credit £10 into each account• Credit union account maintained and deposit points in

schools.• Started last year and this is now the second year• Community credit unions are key partners to the

success.• Potential to be really preventative in terms of future debt.• Annual cost to the council £60,000

What next for Social Innovation?

• Social Innovation in Glasgow continues to thrive both on a small and big scale.

• Increasing recognition that reliance on traditional forms of support (grants) not sustainable

• In UK differing views on the role of Social Impact Bonds and Investment.

• Should businesses “profit” from social innovation?

• Danger small local social innovations are overlooked in terms of accessing finance/sustainable support.

• New innovations are emerging to support sustain and develop social innovation.