Trust lives local: Recognising neighbourhood impact economies 

We are seeing weakened trust in political institutions and the bodies people once relied on to make big decisions. At the same time, the public still place consistently high trust in charities and local civic organisations: nearly six in ten people report high trust in charities. 

And polling from We’re Right Here reveals a strong public appetite for deeper community-level devolution: 43% of respondents identified giving local community organisations more power over decisions as the top priority for government devolution, far surpassing support for creating new mayoral roles. 

Local impact economies: seeing the whole picture 

Change moves at the speed of trust, and right now, trust sits with local organisations: charities, mutual aid networks, market traders, micro-enterprises, faith groups, and the convenors who hold relationships together. These are the foundations of what we call the local impact economy. 

At a national level the “impact economy” is a dynamic, interconnected ecosystem of charities, philanthropy, social investment, social enterprise and purpose-led business. It is large, fragmented and under-recognised in national statistics. NPC’s work on mapping the impact economy aims to define, map and tell the story of that ecosystem so it can attract more capital, influence policy and present a credible case for growth. 

At neighbourhood scale, the impact economy is the everyday mesh of people, places and practices that create social, environmental and economic value – from social enterprises, co-ops and community-owned assets to market traders, sports clubs, faith groups, micro-businesses and resident-led groups. Many of these actors would never call themselves part of an “impact sector”, but their relationships and everyday work are the often the currency of local change. 

Making this ecosystem visible shifts our view of neighbourhoods from deficit to asset. When we identify the strengths every neighbourhood holds, investment flows to opportunity, not just problems. That shift lets us treat neighbourhoods as partners, not targets of intervention.  

And visibility matters beyond the local. National impact players are already recognising the urgency and possibility alive in communities, and as local strengths come into view, a wider coalition is drawn to respond.

Resourcing where trust lives 

It has never been more important to understand, celebrate, and elevate the broad coalition of people and organisations that strengthen our communities. With major commitments such as the Plan for Neighbourhoods and the Community Wealth Fund on the table, we have a real chance to: 

• Recognise the diverse, local ecosystems driving positive change, beyond the traditional players in the charity sector. 

• Shine a light on their impact and ensure that current and future investment flows to them, so they can keep doing what they do best. 

• Design support that enables, not professionalises, informal groups out of their community role. 

Larger anchor organisations will continue to play an important part, but this is a unique moment to ensure resources also reach informal actors who hold deep trust but have often been overlooked as part of the impact economy. 

Neighbourhood renewal will only succeed if we celebrate and invest where trust already lives.

By recognising and resourcing local impact economies, we can unlock a broader coalition of support and investment. But it must start with what communities already have, and partner with them to grow what they need.