United Welsh, Linc Cymru, Melin Homes and Tai Calon are four housing associations that manage all the social housing in Blaenau Gwent – equating to 20% of all the county’s homes. In 2019 they embarked on a project to explore if the power of their collective spend could better benefit the communities around them.
Previous collaboration had identified building and maintenance supply chains as a key area where coordinated spend could be targeted to help support the local economy, with opportunities for training and skills development, business growth and local job creation. However mapping these supply chains, and making links between the four organisations’ budgets and workplans, required careful analysis and dedicated resource, something that was difficult to find amongst existing demands and priorities.
The partners applied to Welsh Government’s Foundational Economy Challenge Fund to help accelerate this collaboration and a grant was awarded in recognition of the potential impact that this could have on the area’s foundational economy businesses. The approved project would map the supply chains across the four organisations, identify key opportunities to strengthen local spend and suppliers, build better relations with social enterprises and SMEs and connect them with existing business support networks.
One of the first key steps was gathering and collating supply chain data over the four partners. To do this, the planned maintenance budgets of all four housing associations were compiled and combined, producing a 10 year forward work programme worth £90 million. This was then used to start conversations with local businesses about how this work could be delivered locally, keeping as much of the spend in Blaenau Gwent as possible.
This sort of intelligence, about the value and scale of future potential work opportunities, is of huge benefit to business planning, particularly for smaller or more specialist suppliers. Knowledge of future opportunities can be critical in deciding for example whether to take on an extra staff member or to invest in training for a new type of installation or product.
Another unanticipated benefit of the project has been its potential to reduce the ‘boom and bust’ cycle of work that the partners were sometimes inadvertently creating. For example, rather than one housing association having an SME replace all their windows one season (boom) and then there being no similar work for months until another housing association did the same (bust), the housing associations can now coordinate programmes of work to ensure that a steady pipeline is always available.
As well as collating maintenance and supply chain data, the partners also shared ideas and existing programmes in place to support local community organisations. This led to a further combining of the partners’ resources – this time to support community spaces and initiatives better through the disruption that COVID-19 has caused. Working with CLES, The Wales Cooperative Centre and The Federation of Small Business, the project has also worked to set up a Social Enterprise Network in Blaenau Gwent, that they hope will continue well beyond the grant timeframe.
As well as achieving the original objectives of the Challenge Fund application, the closer partnership working that the grant enabled is influencing wider work also.
Like many housing associations, those in Blaenau Gwent are working on plans to decarbonise homes through retrofitting. Although this will be challenging, and means that maintenance plans already in place will need to change, it also provides another significant opportunity to support new, well paid, green jobs in the area.
The partnership believes that the new collaborative ways of working established during the Challenge Fund project will enable them to plan and deliver retrofitting in ways that – because of its scale – could deliver even greater benefits than the original project. The pooling of budgets and work programmes could even go so far as to help catalyse a new local retrofit industry through being able to guarantee a steady pipeline of work, geared towards smaller local suppliers.
This will include using the relationships built during the project with local colleges, SMEs and academia to explore how any training and skills gaps for the planned works can be addressed to ensure that work can be delivered locally. This could be an important contribution to building up the skills base in the county, which like many other post-industrial areas, has higher unemployment levels than the national average.
The partners are starting by retrofitting 200 homes, funded by a separate Welsh Government grant, which will be a source of learning about how to retrofit in a way that works for the people living in the homes and delivers the works through local SMEs.
An important spin-off to complement this work is the Blaenau Gwent Climate Assembly – the first of its kind in Wales. This citizen’s assembly will allow local residents to help shape the decarbonisation plans not only of the four housing associations but also Blaenau Gwent County Borough Council and other local decision makers, ensuring that they align with the aspirations of local people. It forms one part of the new community engagement approach that the 4 housing associations have developed during the project.
Steve Cranston, The Foundational Economy Lead from United Welsh, believes that the initial project has therefore expanded into something much wider that will have a long-term influence on the way the partners work together, allowing them to better serve their residents and the local communities around them.
Steve has two key insights for others doing this kind of work. In building collaboration across organisations, he cites trust as a key driver, explaining that “change happens at the speed of trust”. How to develop trust? Openness, transparency and listening.
Another insight is maintaining focus on what the foundational economy is about – people. Providing people with good services backed up by good jobs. Steve explains how having regular conversations with local people and communities and focusing on listening to their views is vital to ensure resources really go to where it’s needed.
Steve says the best part of being part of the Foundational Economy Challenge Fund has been “having time to build trusted relationships with partner organisations. Trust is the most important currency and we have opened up opportunities for long term mutual benefit.”