Introduction

Both the 2008 economic and, more recently, the COVID-19 crisis have sparked much debate regarding systems of alternative socio-economic organization, new conceptualizations of economic development, as well as democratic participation and governance. The types and necessity of economic growth are being re-examined (Novkovic and Webb, 2014; Raworth, 2018; Trebeck and Williams, 2019), and worker-owned cooperatives have been enjoying a resurgence as a response to new forms of employment associated with work deficits such as lower and irregular earnings, reduced social protection and deteriorating working conditions (Deller et al, 2009; Erdal, 2011). This chapter looks at an alternative approach to economic organization, namely CWB and, in particular, the ‘Preston Model’ (PM). From the early 2000s, CWB has emerged as a potent approach to local economic development, where local economies are reorganized so that wealth is not extracted from the local area, but broadly held and income is recirculated (Haskel and Westlake, 2017). The PM is spearheaded by Preston City Council (PCC) and inspired by cooperative principles of economic democracy, focusing on leveraging social value and economic growth through the utilization of local economic assets, wide community participation, economic resilience and sustainability, job market fairness and environmental awareness (Manley, 2017).

Resonating with ‘new municipalism’, and in contrast with cost-benefit analyses guiding local economic development, an alternative paradigm is being formed, where economic democracy, a local adherence to a participatory cooperative ethos, social value and community benefit criteria and goals are at the forefront (Gilbert, 2020). More specifically, this model attempts to enhance the generation and retention of wealth within the local area, by combining the strengths and commitments of various local economic and social actors. This includes harnessing the potential of local ‘anchor institutions’ (major wealth creators, spenders and employers with long-standing historical ties and presence in the area such as universities, hospitals, local authorities, among others); stimulating public-private sector partnerships; engaging with civil society and the third sector; and encouraging the development of networks of worker-owned cooperative businesses. These coops will then ‘plug’ into the opportunities created by the economic activities of the anchor institutions in terms of goods, services and skills, enhancing the sustainability and resilience of the local economy.