To provide Socialism Labour must make every city like Preston

The Democracy Collaborative, CC BY-NC-SA 2.0

Labour has been out of government for over nine years now and the results of austerity have experienced a torrid effect on society. But because socialists we're wrong to think that change can only be perpetrated from Westminster.

Socialism isn't just a set of policies to become enacted by our
central government, it's a systemic change to our political economy.

The only way to do this is build the co-operative economy, promoting co-operative, worker-owned companies, and mutuals using councils and regional government.

Labour has a commitment in its manifesto to double the amount co-operative economy in the UK but it's municipality building municipal socialism store the keys to a socialist economy, not Westminster.

Revolutionary growth

Preston Council continues to be proving over the last few years that promoting co-operatives will not only further ideological goals but also rapidly improve local economies and communities.

The struggling northern town turned “most improved city within the UK”
indicates revolutionary growth since the model continues to be enacted.

The Preston model added lb200 million to the city's economy while significantly reducing unemployment. It has proved the antidote in the suffering of austerity.

Promoting the growth of a co-operative economy

The economic model functions by attempting to promote the growth of a co-operative economy by identifying 'anchor institutions' – large institutions like schools and hospitals which a lot of money flow through – and getting these institutions to alter their suppliers to local co-operatives along with other local smaller businesses.

This results in a new economy that keeps money local and in both your hands of the people who will spend it locally too.

With wealth that will normally be vacuumed to the peak staying in the local economy, the city has witnessed impressive growth.

Fairer and more productive

Co-operatives tend to be more efficient than corporations and could contain the key to the country's productivity problem. By using them Preston's economy has become fairer and much more productive, while keeping money in the local economy.

While the Preston Model needs government action to get going, it
results in a sustainable socialist economy that cannot be simply overturned by
legislation.

If all Labour councils were to follow Preston's impressive example
the co-operative economy would grow rapidly, building the very first blocks in a
socialist economy, without Westminster being involved.

That isn't to say gaining control of the central government is
pointless, not even close to it.

Only a Labour budget can end the hardship of austerity and deliver rising living standards to the working class but we ought to not deceive ourselves into thinking after five years in Westminster the UK will be socialist.

However, Westminster includes a number of roles to play in assisting the democratisation from the economy. Labour has some positive reforms, backing co-determination, putting worker representatives on the board of directors of large companies and, more excitingly, additionally they support “inclusive ownership funds”, a way of channelling profits into worker ownership.

Both can help create an economy that's more worker run and move big companies towards being worker run too.

Macora law

Other legislative changes like the 'macora law' will also help companies evolve into co-operatives, and also the Italian co-operative sector is where to consider inspiration. But overall the legislation needs improving and institutional support, may that be from local or central government needs improving.

And progressive reforms may also contribute.

The main hurdle in starting a co-op is unsurprisingly capital. Therefore, securing credit for brand new co-operatives is essential to helping create more start-ups.

Labour's plans for regional investment banks give an opportunity to promote co-operatives across all regions by giving the funds needed to start new ventures.

Credit unions, as co-ops themselves, may also play a role here in providing the credit required for start-ups.

No time to hang around

It is apparent that Labour's promise to double the amount co-operative sector once in government can be achieved by a number of reforms from Westminster the answer is using it to assist build co-operatives and municipal socialism across the nation.

We should not hold off and watch for Corbyn to achieve the keys to Downing Street to begin this enterprise.

Labour get the chance to enact such legislation elsewhere.

In Wales, Labour control the Assembly but better yet the left has
gained control of the party with the election of Mark Drakeford as First
Minister.

The Welsh government previously happen to be ineffective at best, neo-liberal at worst, but Drakeford looks like he's going to do things differently.

Drakeford has promised the establishment of the new Welsh energy mutual and the establishment of a community bank of Wales but hidden inside the manifesto would be a resolve for “to identify local anchor institutions and work with these to audit their contracts to increase the worth and volume of procurement from regionally based SMEs.”

Enacting the Preston model

While Welsh Labour have missed out the resolve for co-operatives
it shows the Welsh government have close eyes on Preston.

Mark Drakeford would prosper to incentivise councils to enact the Preston Model all over Wales and make institutions that can help drive a co-operative economy.

Wales offers an chance to test how a central government can promote co-operatives while showcasing the benefits of municipal socialism on the country.

Labour can never deliver socialism via proclamation yet the party
has always favoured a very statist approach to socialism, as well as in many ways,
it has been its undoing.

While libertarian socialism is beginning to find popularity in
Labour's youth a lot of the party are still overly obsessed with the
nationalisation and also the welfare state.

If only the ideas of Tom Mann had been embraced at the start of Labour's
history we might be living in a really different nation.

While John McDonnell says Preston's “radicalism is exactly what we want across the whole country” at
present it's mostly talk.

It 's time for the party to consider past the state and leave
behind social democratic manifestos.

By building a co-operative economy from the bottom up we can build
a socialist nation.