Deptford Neighbourhood Action - Economy Policies

An economy for Deptford: what is the economy for?

Deptford needs to support an economy that delivers better well being as well as tackling the growing inequalities for the people who live, work or study in the Deptford Neighbourhood Plan area.

In the context of London, LB Lewisham (that includes the Deptford NP), has only a very small share at 1.8% of London’s overall economy. Most people now travel out of Lewisham, every day, for work. Whereas in the more recent past 20th Century, Deptford was a place that people came to for work.

A Circular Economy

DNA supports a circular economy in which we aim to keep resources in use for as long as possible, extract the maximum value from them whilst in use, and then recover and regenerate products and materials at the end of each service life. Our aim is for 75% of local waste recycled locally.

Through LB Lewisham incentive schemes created for residents in the form of financial rewards for those whom recycle more e.g. discounts on council tax, business rates, for recycling more, and including providing subsidies to re-use centres and financial aid to set up recycling projects in Deptford which will create jobs.

Elsewhere in the world, landfill bans for certain materials have also helped to divert waste from disposal and increase recycling and composting. Energy is saved by recycling rather than burning materials:

Paper 3 times; Plastic 5 times; & Textiles 6 times.

Reference: Friends of the Earth “Up in smoke” report 2003.

Priority materials would include biodegradable materials, such as food, green waste, paper and cardboard. These materials need to be diverted from landfill to comply with the EU Landfill Directive (

The Local Government Association supports the maximisation of reusing materials “Make do and mend, pre-loved, second hand, up-cycling, reconditioning, pre-owned.”: as it has a financial benefit for tax payers by reducing the amount that councils have to pay in landfill tax and disposal; an economic benefit by expanding the industry and creating jobs along the supply chain; as well as putting pounds in the pockets of charities, businesses and individuals by helping them to realise the resale value of unwanted products.

Nearly 615,000 tonnes of material that currently finds its way to landfill or incineration could instead be repaired, resold or donated. As well as the social and environmental benefits there is a strong economic business case to do this too: Diverting 615,000 tonnes of material away from landfill or incineration would save the tax payer more than £60 million each year. The estimated resale value of these goods, and those recycled which could be re-used is approx £375 million! (

A Green Investment Bank

To support innovative products which design in re-use:

  • repairing and recycling activities
  • supporting networks connecting surplus food, building materials, furniture, IT equipment etc with people in need
  • Ensure support and funding schemes are easily accessible to Small and Medium Enterprises, social enterprises and local community groups for education and training programmes through a Deptford Community Development Trust
  • Actively support the growth of local businesses, from Small to Medium, and Medium to Large, to provide work locally and attract new people to our area

Economy of the Common Good

The Economy for the Common Good (ECG) is an alternative economic system built on values that promote the needs of the entire population. It is a tool for economic, political, and social change – a bridge to a better future.

Economic

On the economic level the ECGis a viable and workable alternative for businesses of diverse sizes and legal structures. Its goal is to evaluate the management success of businesses based on values oriented towards promoting the common good.

Political

On the political level the movement seeks to bring about changes to current legislation. The overarching goal is to ensure a good life for all living things and for the planet as a whole, supported by a sustainable economic system. Human dignity, global fairness and solidarity, ecological sustainability, social justice, and democratic participation are at the top of the agenda.

Social

On the social level the ECGis an initiative to raise awareness for systemic change that seeks to motivate as many people as possible to cooperative, conscientious action. The Economy for the Common Good isa source of hope and courage and strives to cooperate with other movements for economic, social and environmental justice.

It is an open, participative process with a grassroots structure and a global scope

ECG’s Ten Guiding Principles

  1. The Economy for the Common Good (ECG) strives towards an ethical market economy designed to increase the quality of life for all and not to increase the wealth of a few.
  2. The ECG helps promote the values of human dignity, human rights and ecological responsibility into day-to-day business practice.
  3. The Common Good Matrix indicates to what extent these values are put into practice in a company. The Matrix is being continually improved upon in an open, democratic process.
  4. The Matrix provides the basis for companies to create a Common Good Balance Sheet. The Common Good Report then describes how a company has implemented these universal values and looks at areas in need of improvement. The report and the balance sheet are externally audited and then published. As a result, a company’s contribution to the Common Good is made available to the public and all stakeholders.
  5. Common Good companies benefit in the marketplace through consumer choice, cooperation partners and common-good-oriented lending institutions.
  6. To offset higher costs resulting from ethical, social and ecological activities, Common Good companies should benefit from advantages in taxation, bank loans and public grants and contracts.
  7. Business profits serve to strengthen and stabilize a company and to ensure the income of owners and employees over the long term. Profits should not, however, serve the interests of external investors. This allows entrepreneurs more flexibility to work for the Common Good and frees them from the pressure of maximizing the return on investment.
  8. Another result is that companies are no longer forced to expand and grow. This opens up a myriad of new opportunities to design business to improve the quality of life and help safeguard the natural world. Mutual appreciation, fairness, creativity and cooperation can better thrive in such a working environment.
  9. Reducing income inequality is mandatory in order to assure everyone equal economic and political opportunities.
  10. The Economy for the Common Good movement invites you to take part in recreating an economy based on these values. All our ideas about creating an ethical and sustainable economic order are developed in an open, democratic process, will be voted upon by the people and will be enshrined in our constitutions.

Other cities such as have Saltzburg have used these principles, references:

The EESC (European Economic & Social Committee)

  • considers that the Economy for the Common Good (ECG) model is conceived to be included both in the European and the domestic legal framework.
  • underlines that the ECG is a model to be realised within the market economy, it is not opposed to the market economy.
  • believes that the ECG will contribute to the transition towards a "European Ethical Market" which will foster social innovation, boost the employment rate and benefit the environment.
  • hopes that the "European Ethical Market" will be built through the implementation of several strategies:
  • Measuring indicators of wellbeing and social development beyond the GDP such as the Common Good Product and the Common Good Balance Sheet.
  • Policy-making aimed at recognizing companies with higher contributions to the common good, such as ethical public procurement and the promotion of ethical internal trade.
  • Promoting ethical external trade as the "Brand Europe". In this way, European companies will lead the global ethical market and will contribute to the enhancement of human rights, labour standards and the protection of the environment throughout the world.
  • Encouraging all kind of entrepreneurs who start up organisations aimed at contributing to the common good.
  • Fostering ethical consumption and awareness among European consumers.
  • Increasing the diversity of the financial ecosystem by promoting networks of ethical banks and stock markets

Three innovations aim to rectify this: the Common Good Product, the Common Good Balance Sheet and the Common Good Exam of investment projects.

On the company level, the Common Good Balance Sheet measures how firms fulfil key constitutional values that serve the common good. These include human dignity, solidarity, justice, ecological sustainability and democracy. This new balance sheet measures some 20 common good indicators, including:

  • Do products and services satisfy human needs?
  • How humane are working conditions?
  • How environmentally-friendly production processes?
  • How ethical are sales and purchasing policies?
  • How are profits distributed?
  • Do women and minorities receive equal pay for equal work?
  • Are employees involved in core, strategic decision making?

So far, 400 European businesses have started using the Common Good Balance Sheet and its grading system which awards credits and demerits depending on each company’s activities impact the common good. A number of towns in Spain, Italy and Austria have also decided to become Common Good Municipalities with the support of regional parliaments.

The companies and towns rate their activities according to a list of indicators, and the results are examined by external auditors. Each one can reach a maximum of 1000 points. Up until now the average is around 300, which shows that there is still much room for improvement among companies across the board.

If all companies scored 1000 points, we’d have no poverty and unemployment any more, an excellent environment, gender justice, peace, and a well-working democracy. These companies are using the balance sheet out of sheer interest, without any incentive - although consumers, investors, skilled workers who look for meaningful employment as well as the media public are paying increasing attention to this new business approach. However, ideally an incentive system would be put in place rewarding good results with tax reliefs, lower tariffs, better loan conditions and priority in public procurement among other things.

Tax Treatment

For example, on the trade front, rather than a blanket trade agreement on a country-by-country or regional basis, the U.K. we could require individual companies seeking to sell goods within its borders to present strong Common Good Balance Sheet results. Failing these, tariffs would be applied, increasing progressively as performance declines.

Companies disrespecting international labor standards say, through child labor or poor health and safety conditions or ravaging the environment would be hard hit. So would those engaged in any form of dumping, from wages to taxes.

Ultimately, ethical products and services would become cheaper for consumers than less ethical ones, and only socially responsible businesses could survive. Non-ethical business would find themselves either forced to change or facing insolvency.

Encouraging quality

Require all Local Building Developments to provide a wide variety of high quality skilling, training and jobs for local people living in the Neighbourhood Area. That can provide sustainable opportunities and work, beyond the immediate build out phase, for the medium and long term benefit of the local area.

DNA Target would be for Development Firms to aim to provide at least 70% of vacancies for the Neighbourhood Area where possible and to justify why that figure cannot be attained if it is lower.

All Planning Applications for major new development must take into account the need for new business and community workshop space, at a low cost rate (following from an initial discount rate, or a long term ‘a peppercorn rent’), to accommodate a mix of economic activities in all sectors, including community and voluntary organisations, social enterprises, education, play, religious, health and care facilities.

DNA would look to the local DEK, amongst others, to arrange and support skilling and training needs.Proposals to upgrade or extend existing employment sites will be supported provided that the impact on the amenities of surrounding properties is acceptable.

The Neighbourhood Plan allocates land at ………… for the development of a business incubator facility comprising B2 (General Industrial) usage to promote and support economic development in Deptford.

Planning decisions and economic policies should recognise and take account of existing local economies and require detailed evidence of the reality on the ground, including for example business audits, mapping supply chains and business connection, interviews with business owners, as well as assessments of local labour markets.

Educate people in green skills, and also in new ship-building and computer-aided design. Convoys Wharf, the largest ‘brownfield’ site in LB Lewisham, and central placed in the DNA. Is proposing to be redevelopment as a mainly luxury housing scheme. Turning its back on hundreds of years of economic and naval/shipbuilding heritage. Producing only xxx (note: check figure here) of new business space. A lost opportunity to make a significant new economic injection in to Deptford.

Economic drivers

Our aim is to protect all business/commercial spaces, where we can, especially to then provide for growth and for medium to large businesses to move back in to Deptford; and to thrive here in to the future. We will encourage local businesses to recruit people living locally to support the local economy. By incentives, to bring in and keep local economic activity.

We have identified a ‘reflected C-shape’ – of Evelyn Street A200, Deptford High Street, and New Cross Road A20 – as a centre of the key activity and shopping centres. With a need to extend the conservation area – out from Deptford High Street - to recognise the ‘reflected C’ for:

(a) A source of Healthy and cheap food

(b) A social and health benefit

(c) A source of independent business and local supply

(d) Providing Local employment

(e) An opportunity for start new businesses

(f) An opportunity to network with wider import/export

We will support new enterprise and local business by providing community land for new small – middle enterprise and providing cheap: workshop space; studios; small retail units; industrial units; yards; sheds; warehouses; and wharves, incubator and pop up spaces especially in empty shop units in the High Street, The Broadway and Evelyn Street.

Protect our existing small and medium business spaces, often located amongst mainly residential, to ensure local services are kept local. Sustaining artisans, craftspeople, shopkeepers, and the like to flourish locally. Providing both variety and ingenuity.

Encourage Network Rail to support the local Community by providing parcels of land for self-build housing and new businesses.

Ask that all public sector, contractor, medium-large businesses and Housing Developers to pay the London Living Wage (currently £9.75 per hour).

Economic Policies

E1: Circular economy

Objective: to keep resources in use for as long as possible.

Policy: 1.0 Extract the maximum value from resources whilst in use, repair and repurpose where possible, and then recover and regenerate products and materials at the end of each service life.

1.1Aim for 75% of local waste recycled locally.

1.2Incentive schemes in the form of financial rewards for those who recycle, to be linked to discounts on Council Tax or Business Rates

1.3Provide subsidies to re-use centres.

1.4Provide financial aid to set up recycling/reprocessing projects – via a Community Development Trust & The UK Green Investment Bank: (

1.5Build on local Time Banks to develop this resource in Deptford.

E2: Economy for the Common Good

Objective: alternative economic system built on values that promote the needs of the entire population in the DNA area and beyond.

Policy: 2.0 Economic goal is to evaluate the management success of businesses based on values oriented towards promoting the common good.

2.1 Political goal to bring about changes to current legislation. To ensure a good life for all living things and for the planet as a whole, supported by a sustainable economic system. Human dignity, global fairness and solidarity, ecological sustainability, social justice, and democratic participation.

2.2 Social goal is an initiative to raise awareness for systemic change that seeks to motivate as many people as possible to cooperative, conscientious action. Asa source of hope and courage and strives to cooperate with other movements for economic, social and environmental justice.

2.3 Towards an ethical market economy designed to increase the quality of life for all and not to increase the wealth of a few. To offset higher costs resulting from ethical, social and ecological activities, Common Good companies should benefit from advantages in taxation, bank loans and public grants and contracts.

2.4 Business profits serve to strengthen and stabilize a company and to ensure the income of owners and employees over the long term. Profits should not, however, serve the interests of external investors. This allows entrepreneurs more flexibility to work for the Common Good and frees them from the pressure of maximizing the return on investment.

2.5 Companies are no longer forced to expand and grow. Opening up a myriad of new opportunities to design business to improve the quality of life and help safeguard the natural world. Mutual appreciation, fairness, creativity and cooperation can better thrive in such a working environment.

2.6 Reducing income inequality is mandatory in order to assure everyone has equal economic and political opportunities.