A major new report from Demos, Economies of Coordination: Unlocking Growth and Opportunity for Young People in Britain’s Left‑Behind Neighbourhoods, warns that the UK’s economic stagnation and rising youth disadvantage cannot be reversed without transforming how local businesses work together. The report argues that Business Improvement Districts (BIDs) are uniquely positioned to lead this shift.
The research reveals that almost one million young people are currently not in education, employment or training, with those from low‑income backgrounds twice as likely to be affected. At the same time, the UK’s “long tail” of low‑productivity firms continues to hold back national growth.
The report identifies ‘economies of coordination’ as the missing ingredient in local economic development — the ability of businesses, councils, educators and community organisations to pool data, learning, capacity and voice. Case studies show that where this coordination infrastructure exists, local economies become more resilient, more productive and better able to create opportunities for young people.
BIDs AS ENGINES OF LOCAL GROWTH
The report emphasises that BIDs are already delivering many of the core functions required for economies of coordination — from shared services and place‑making to business engagement and skills partnerships. With the right support, BIDs could become central to national missions on growth, opportunity and social mobility.
Key findings include:
- 96% of SMEs do not currently coordinate with local partners in at least one key area such as data‑sharing, advocacy or skills outreach.
- Better coordination could generate up to £28 billion in annual economic growth and create nearly two million new management apprenticeships.
- BIDs provide a ready‑made platform for collaboration, particularly in towns and neighbourhoods facing entrenched disadvantage.
A CALL TO ACTION
Demos urges government, local authorities and employers to invest in and empower coordination bodies — including BIDs — to help rebuild local business ecosystems and restore opportunity for young people.
“BIDs already bring businesses together around shared priorities. This report shows they can go even further — becoming the backbone of coordinated local economies that deliver growth, skills and hope for the next generation,” the authors conclude.