Beyond the Ballot Box: How Your Local Spending Can Reshape Your Community and Give You Real Political Power

Imagine for a moment that every pound you spend could be a vote—not just for a product, but for the kind of community you want to live in. What if choosing the independent bookshop over Amazon, or paying cash at the local café instead of tapping your card, actually gave you more influence over your town's future than ticking a box in a local election every four years?

It sounds idealistic. But across the United Kingdom, from Preston to Bristol to the newest "Pride in Place" neighbourhoods, a quiet revolution is proving that local spending is one of the most powerful tools ordinary people have to shape their communities. And crucially, it translates directly into the kind of political leverage that gets councils listening and governments acting.

This article explores the measurable impact of choosing local, the surprising role of cash in building community power, and the new legislative rights that are putting control back where it belongs: in the hands of local people.

Part One: The Economic Case – Why Your £10 Matters More Than You Think

The Local Multiplier Effect Explained

When you spend money in a community, it doesn't simply disappear. It circulates, like water in an ecosystem, nourishing everything it touches. Economists call this the "local multiplier effect"—and the numbers are striking.

Research has shown that money spent in locally-owned businesses generates significantly greater local economic benefits than spending with national chains or multinational corporations. Why? Because independent businesses are far more likely to re-spend that money within their own community. They employ local accountants, use local printers, buy from local suppliers, and their owners live locally and spend their wages in nearby shops.

The Centre for Local Economic Strategies (CLES), a leading UK think tank, has documented this effect extensively. They argue that when major institutions adapt their procurement to favour local enterprises, they can "create dense local supply chains and ecosystems" of small businesses, social enterprises, and cooperatives. These businesses, in turn, "are more likely to support local employment and have a greater tendency to recirculate wealth and surplus locally."

The Numbers: What the Research Shows

The statistics are compelling:

Up to 80% of money spent with multinationals leaves the local area immediately, while up to 80% can stay in the community when spent with local businesses.
For local food outlets, every £10 spent can generate an additional £25 for the local economy through re-spending.
When you spend with a local business, the money recirculates 2-3 times more than spending with national chains.

To put this in human terms: spend a tenner at a global chain, and perhaps two pounds remains in your town. Spend the same amount at the independent greengrocer, and eight pounds stays local—paying the shop assistant who then spends it at the bakery, who then buys from the local farmer, and so on.

The Preston Model: A Blueprint for Change

The most celebrated UK example of this principle in action is the Preston Model. This Lancashire city, once struggling with the same decline affecting many post-industrial towns, decided to do something radical: redirect the spending of its "anchor institutions"—the council, the university, the hospital—towards local suppliers.

The results have been transformative. According to CLES, the recirculation of over £200 million being spent with local suppliers has had a "positive multiplier effect on local jobs, health and wellbeing." The impact was so significant that in 2018, Preston was named the "Most Improved City in the UK."

This isn't about charity or sentiment. It's hard-nosed economic strategy. And if institutions can achieve this scale of change through procurement policies, imagine what a concerted shift in public spending habits could achieve.

The Stroud Calculation: What If Everyone Shifted £10?

Dr. Simon Opher, the MP for Stroud, did precisely that calculation for his constituency. He estimated that if every adult in his area shifted just £10 of their weekly spending from national chains to local independents, it would mean nearly £200 million being circulated and re-circulated in the local economy every single year. He described the effect as "transformational."

That's not hypothetical. That's a mathematical reality based on the multiplier effect. Your £10, multiplied across a community, becomes millions. And millions becomes the kind of economic heft that demands political attention.

Part Two: The Cash Question – Why Physical Money Builds Stronger Communities

The Surprising Return to Cash

In an era of contactless payments and digital wallets, you might assume cash is dying. You'd be wrong—at least when it comes to supporting local businesses.

Recent polling by the Post Office found that people in Yorkshire and the Humber are actively rejecting the "cashless society" specifically to help independent businesses. Two in five respondents said they used cash so that independent shops could avoid paying card transaction fees, while 22 per cent used cash deliberately to boost the local economy.

Tony Fleming, a postmaster in Thorne near Doncaster, observed: "It's great to see so many people in the region recognise just how important cash is to our communities. In Yorkshire and the Humber, people really understand that notes and coins can help to strengthen the local economy."

Why Cash Matters for Small Businesses

The Federation of Small Businesses (FSB) has been unequivocal on this point. Tina McKenzie, the FSB's policy chair, stated: "For thousands of small businesses, cash remains an essential payment method—and it's vital they continue to have the option to accept cash, as well as other payment methods, now and in the future."

There are practical reasons for this:

Transaction fees - Every card payment eats into a small business's margin. For businesses operating on tight margins, those fees can make the difference between profit and loss.
A brake on rising costs - Cash acts as "a key competitor to cards and other kinds of payment, acting as a brake on rising fees for other forms of payments."
Reliable backup - When digital systems fail—and they do—cash keeps businesses trading. This is particularly crucial in areas with poor digital connectivity.
Inclusion - Cash ensures that everyone can participate in the local economy, regardless of their access to banking or digital infrastructure.

The Infrastructure Challenge

However, the FSB has also warned that cash is under threat from a different direction: the collapse of banking infrastructure. "We've seen a huge decline in the bank branch network over recent years, with the infrastructure supporting use and access to cash steadily contracting," McKenzie noted. "These closures have led to more small firms opting for digital-only payments, as the logistics and costs of cash handling become unmanageable."

The solution, the FSB argues, is banking hubs—shared facilities providing cash access for businesses and consumers, alongside financial advice. These need to be rolled out "at speed" to match the pace of branch closures, particularly in rural areas hardest hit by the retreat of the high street banks.

For consumers, this means a clear message: if you value local businesses, use cash when you can, and support campaigns for banking infrastructure that keeps cash viable.

Part Three: From Economic Power to Political Influence

The Missing Link

Here's where the argument moves from economics to politics. A thriving local economy isn't just pleasant—it's power. Here's how the chain works:

Strong local businesses → Dense local supply chains → More local employment → Greater community cohesion → Collective organising capacity → Political leverage

A cluster of profitable, stable local businesses is a formidable lobbying force. They employ more staff, pay them better, and invest more in the local area. They form active trade associations or Business Improvement Districts (BIDs) that can speak with one voice to the council on issues like parking, business rates, and local investment.

And crucially, a councillor is far more likely to listen to a united group of 50 local employers than to a single, struggling shopkeeper.

The Bristol Pound Experiment

The Bristol Pound, a local currency launched in 2012, illustrated both the potential and the limitations of this approach. While it succeeded in keeping money circulating locally, it struggled to reach beyond the "white, middle-class, Green-voting individual" demographic.

However, the project's longevity—it was still going strong in 2018—demonstrated something important. As one organiser noted, "The biggest thing we've done is survive." In doing so, the Bristol Pound created networks of local businesses and consumers that could mobilise around common interests.

Why Vibrant Places Become Political Priorities

When local areas are bustling with independent cafes, shops, and services, they become nicer places to live. This creates a virtuous cycle. A vibrant high street is a political asset for local councillors. It becomes a priority to protect and enhance.

By making this a reality with your spending, you create a political imperative for the council to support it with better maintenance, improved public spaces, and supportive planning policies. The economic reality you've helped create becomes a political reality the council cannot ignore.

Part Four: The Legislative Revolution – New Powers for Local People

The Localism Act 2011 and Its Limits

The foundations for community power were laid with the Localism Act 2011, which introduced several important rights:

Assets of Community Value (ACV) - Allows communities to nominate local land or buildings as assets of community value. When a listed asset is put up for sale, a moratorium period allows community organisations time to prepare a bid.
Community Right to Bid - The right to bid on ACV-listed assets, though importantly this is a right to bid, not a right to buy.
Neighbourhood Planning - Gives communities the direct power to develop a shared vision for their neighbourhood and shape local development. Communities can set planning policies through neighbourhood plans that form part of the statutory development plan.

However, these powers had limitations. The Community Right to Bid, for instance, only gives communities time to prepare a bid—it doesn't guarantee they can buy the asset.

The New Right to Buy: Strengthened Powers Coming

That's about to change. The government has confirmed that a strengthened Community Right to Buy will be introduced in the English Devolution Bill. Unlike the previous right to bid, this will provide "stronger powers for local people who wish to purchase valued community spaces."

The government has stated it is "considering what changes need to be made to the Localism Act 2011 to better support community ownership, while respecting the rights of asset owners." This represents a significant shift in the balance of power between communities and property owners.

The Plan for Neighbourhoods: A Toolkit for Change

The Plan for Neighbourhoods, published by the government, provides a comprehensive list of powers available to communities. Crucially, it "brings together residents, business leaders, and community leaders to begin to fix the foundations and take back control of their futures."

Community Powers Available Power What It Does Assets of Community ValueNominate land/buildings for protection Neighbourhood Development PlansShape local planning policy Business Improvement DistrictsLevy additional rates for local improvements High Street Rental AuctionsTackle long-term commercial vacancies Pavement LicencesEncourage outdoor dining and street life Clean Up NoticesRequire land to be cleaned up when it harms amenity Section 215 PowersAddress land adversely affecting local amenity

High Street Rental Auctions: A Game-Changer

One of the most innovative new powers is High Street Rental Auctions (HSRA), introduced through the Levelling Up and Regeneration Act 2023 and in force since December 2024.

HSRAs empower local authorities to address long-term commercial vacancies in town centres. If a property has been vacant for a prolonged period, the local authority can auction off the lease, bringing it back into use. This makes tenancies "more accessible for small businesses and community groups, revitalising town centres and boosting local economies."

For community groups wanting to establish a presence on the high street, this is a powerful tool. It directly tackles the blight of empty shops that drag down areas and discourage footfall.

The Pride in Place Programme: £20 Million for Local Control

The most ambitious recent development is the Pride in Place Programme, launched by the government in 2025. This commits up to £20 million in flexible funding and support to 244 places over the next decade. In total, the government is investing up to £5 billion across 339 communities.

The programme is built around Neighbourhood Boards—bodies made up of residents, community groups, and business leaders that decide how money is spent. As Prime Minister Keir Starmer put it:

"Whether it's breathing new life into a high street, setting up a local sports league, or saving the pub at the heart of your community – Pride in Place is about putting power back where it belongs: in the hands of local people."

Crucially, Neighbourhood Boards must prove they have listened to and have the backing of residents to receive their full funding. This ensures that "community voices sit at the heart of the decisions made about the future of their areas."

Case Study: The West Midlands

The scale of this investment is substantial. In the West Midlands alone, the government is investing up to £570.5 million through the Pride in Place Programme and the Pride in Place Impact Fund. Twenty-eight places in the region receive direct programme funding, while seven local authorities receive up to £1.5 million each over two years through the Impact Fund.

Each area receives "dedicated delivery support" from the government's Communities Delivery Unit, including "access to place-specific data, guidance and capability support tailored to local needs."

Part Five: Bringing It All Together – A Practical Guide to Building Community Power

The Cycle of Change

Here's how the different elements we've explored connect together into a coherent strategy for community empowerment:

Stage Action Outcome

Economic Shift spending to local independents; use cash Strengthened local businesses; money recirculating
Social Build relationships through local spending Community cohesion; networks of trust
Organisational Form business groups, engage with Neighbourhood Boards Collective voice; access to decision-making
Political Use legislative powers; secure funding Direct control over assets and spending

What You Can Do: A Practical Checklist

As an individual:

Shift your spending - Aim to move at least £10 per week from national chains to local independents. Use cash where possible to help businesses avoid card fees.
Get involved - Check if your area has a Neighbourhood Board or is part of the Pride in Place Programme. Contact your local MP or council to find out.
Nominate assets - Use the Assets of Community Value process to protect valued local buildings and spaces.
Support banking infrastructure - Campaign for banking hubs and post office counters that keep cash viable.

As a business owner:

Join or form a BID - Business Improvement Districts give you a collective voice and fund local improvements.
Build local supply chains - Source from other local businesses to maximise the multiplier effect.
Accept cash - Ensure you're accessible to all customers and avoid transaction fees.
Engage with neighbourhood planning - Shape the planning policies that affect your business area.

As a community group:

Explore the Community Right to Buy - Prepare to bid on valued assets when they come up for sale.
Consider High Street Rental Auctions - Work with your council to bring vacant properties back into use.
Develop a Neighbourhood Plan - Gain statutory power over local development decisions.
Apply for funding - Ensure your Neighbourhood Board is accessing available programmes.

The Role of Local Authorities

Councils have a crucial enabling role. They can:

Use their own procurement to support local supply chains, as in Preston.
Implement HSRAs to tackle vacant properties.
Support Neighbourhood Boards with data and guidance.
Use Section 215 powers to address sites harming local amenity.
Issue pavement licences to encourage street life.

The best outcomes happen when active communities meet responsive councils. The legislative framework now exists to make that partnership work.

Conclusion: The Power in Your Pocket

The argument of this article can be summarised simply: your spending choices are not just economic transactions. They are political acts.

Every pound spent with a local independent business strengthens the local economic ecosystem. Every cash payment helps a small trader survive on their margins. Every engagement with a Neighbourhood Board builds the collective capacity to demand—and exercise—real power.

The Preston Model shows what's possible when institutions redirect spending. The Bristol Pound shows how local currencies build networks. The Pride in Place Programme shows that government is now willing to put significant resources behind community-led regeneration. And the new Community Right to Buy shows that the legal framework is shifting power from property owners to local people.

None of this happens automatically. It requires conscious choice, sustained effort, and collective organisation. But the tools are now available as never before. The question is whether we will use them.

The next time you reach for your wallet, ask yourself: where do I want this money to end up? Who do I want to empower? What kind of community do I want to live in?

The answer is in your hands. Or more precisely, in your pocket.