Anchor institutions and their potential for local impact
The NHS and other key health organisations have started considering the value that anchor institutions can bring to ‘place’ and the key role they could play in developing successful local communities and social value. What is lacking from the debate is how a regionally focused, civic approach to the current economic conditions could help the UK overcome its economic challenges. Especially if these institutions were entrusted with some of the finances the UK Treasury has budgeted for this work. I believe that such an approach could lead to the development of that mythical multiheaded hydra of national and inclusive growth, addressing regional inequalities, and delivering on our net zero targets.
The limitations of centralised funding
A ‘one size fits all’, centralised approach to funding limits the economic impact that regional place-makers can deliver. I would agree that the centralised control enables the Treasury to reduce and manage the UK’s balance sheet more effective. This impacts tendering processed in Councils and at anchor institutions, many of which were stripped back over years of austerity and ‘efficiency’ measures. There are additional risks too: by creating competition at both national and regional levels, we see institutions working in silos, each looking to develop a project that will secure them funding. If we created an environment in which regional anchor institutions had greater time, flexibility, and finances to develop regionally specific projects, we could then take advantage of skills, knowledge and experience in each region. This could enable clear mapping of regional needs and assets, an analysis of what has and hasn’t worked previously, and how each project will deliver for the community. To enable this to happen, the UK government could utilise Local Labour Market Agreements (LLMA), with regional partners, enabling them to gain ‘earned autonomy’, and creating improved collaboration between regions and national government.
Unlocking regional autonomy and collaboration
Utilising greater levels of devolution beyond just local government could deliver a regionally focused, civic approach to redress the current situation, where regions and anchor institutions are empowered to take advantage of their unique opportunities, be these geographical, sectoral, skills related and all while, developing a stronger relationship with the government, aimed at better understanding what works within national confines. This is the careful balance required to enable regions, under the existing system, to secure funding and gain the trust of those in power, in the hope this will convince the government to loosen, or even remove the jacket (for example, through devolution deals).
Driving inclusive growth and net zero through regional action
How can regional anchor institutes solve these challenges and deliver growth while progressing towards our net zero targets? In the context of the UK’s current economic challenges, a regional approach, focused on empowering and utilising anchor institutions, can help. . There are strong examples of best practice from anchor institutions, that are already supporting regions to overcome economic barriers. If this were scaled up in a way that took on board regional differences and opportunities, we could achieve success and growth across the UK, centred around how participation can empower regions to deliver on their civic and economic potential.
A version of this article was originally published on the NCIA website in December 2023
Innovation and Investment Institute for Community Studies Social finance and ventures Posted on: 2 December 2025 Authors: Jacob Coburn,