Kirklees MBC and the Centre for Local Economic Strategies (CLES) have begun work to develop a more inclusive local economy through a new approach to economic development, ‘local wealth building'. In so doing, the council joins a progressive movement of local authorities using this approach from Barcelona and Bologna to Preston and Salford.

‘Local wealth building' aims to reorganise the local economy so that wealth is broadly held, with local roots, and where benefits are re-circulated.

The local wealth building movement seeks to provide resilience where there is risk, local economic security where there is precariousness and to ensure opportunity, dignity and wellbeing for all.

A key part of this is how established organisations (anchors), from local hospitals to local authorities and large private companies, can use their assets, employment practices and spend to improve local economic and social wellbeing. Through local supply-chains and responsible employment and asset-management practices, these organisations are partners in reshaping local places and empowering local people for a more inclusive economy.

Over the last 12 years at CLES, we have worked with a number of local authorities and wider anchor institutions such as universities, housing associations and the NHS, to undertake wealth building activities.

These activities have helped boost local jobs and reduce deprivation in places like Manchester and Preston, for example.

Over a five-year period, Preston saw local spend and investment increase by £70m in the city and by £200m in the wider Lancashire area.

In Kirklees, where parts of the district are in the top 10% most deprived areas in the country, we have been looking at ways of boosting and improving the social, economic and environmental impact of the council's activities and decisions, including local supply chains and asset-management. As well as extensive green space, Kirklees benefits from a strong local manufacturing industry and has renowned strengths in precision engineering and textiles.

In the recent local elections, the Labour leadership committed to empowering and enabling communities and partners, improving local employment, and to creating the conditions in which local democracy will thrive.

The work with CLES will help deliver the manifesto's vision and ties into the Kirklees Democracy Commission's ongoing work with local businesses to develop the idea of ‘business citizenship' and deliver an active citizens' strategy. The work with CLES will aspire to address:

1 Spend and procurement – increasing local social and economic impact;

2 Employment – delivering high quality, local employment with a real living wage;

3 Assets – ensuring assets, land value, property, and investments benefit the local economy;

4 Democracy – Identifying opportunities for greater democratic ownership through local co-operatives and setting up or supporting community banking and local energy companies.

The work with anchors institutions in Kirklees has begun and the council is very positive to be embarking on this progressive programme of work with CLES, which will further more inclusion and help to inform the inclusive growth agenda.

It will support the growth of local business, community groups and the voluntary sector across the district, as well as helping to improve the wellbeing of our residents by tackling deprivation and inequalities where it exists, in our communities.

Neil McInroy is chief executive of the Centre for Local Economic Strategies and Cllr Shabir Pandor is leader of Kirklees MBC