📍REPORT LAUNCH: Local Regeneration Works – Groundbreaking Study Proves It New research shows local, resident-led regeneration has doubled business growth in the UK’s most disadvantaged communities

A landmark report published today, Everybody Needs Good Neighbourhoods, provides the strongest evidence yet that community-led regeneration can transform local economies, reduce child poverty, and lower crime.

The study, unveiled at the Local Government Association Conference in Liverpool, compares the Big Local programme — the UK’s largest resident-led regeneration initiative — with 29 similarly deprived neighbourhoods without such intervention. Conducted over a 15-year period, it’s the first of its kind to track long-term impacts of place-based, neighbourhood-led initiatives (NBIs).

And the findings are clear: when local people are trusted with the power and tools to lead change, communities thrive.

Business Growth, Poverty Reduction, and Safer Streets

Key metrics show striking improvements in areas supported by Big Local and other NBIs compared to their counterparts:

• Business activity increased by 41% in neighbourhood-led areas — nearly double the 22% rise seen in benchmark communities.

• Child poverty rose more slowly, increasing by 5.5 percentage points between 2014–2021, compared to 8 points in areas without such initiatives.

• Crime dropped by 19.1 incidents per 1,000 people, compared to only 10.5 in control areas. The most notable reductions were in criminal damage and overall crime.

These outcomes suggest that bottom-up solutions — when backed by long-term support — can outperform traditional, top-down regeneration efforts.

Giving Power Back to the People

Rachel Rowney, Chief Executive of Local Trust, described the findings as a wake-up call for national policymakers.

“This research adds further weight to the growing evidence base in favour of neighbourhood interventions. Big Local has shown that community-led regeneration can be successful when supported by long-term, flexible funding,” she said.

“Developing community capacity in areas doubly disadvantaged by material deprivation and low social infrastructure must be a priority for anyone serious about tackling poverty, crime, and stagnant local economies.”

A Model That Works

The study — carried out by Local Trust in collaboration with 3ni, Shared Intelligence, and OCSI — shows that resident-led regeneration isn’t just idealistic, it’s practical and effective.

Dan Crowe, Director of 3ni, the National Network for Neighbourhood Improvement, was emphatic:

“Neighbourhood working works. When local people lead change, you get stronger economies, safer streets, and better futures. This study is the clearest evidence we’ve had to back up what communities have been telling us for years.”

Government Policy Catching Up?

The report arrives just as the Government’s Plan for Neighbourhoods is beginning to take shape — committing £1.5 billion to 75 areas, alongside further investments promised for up to 350 deprived communities across the UK.

Stephen Aldridge, Director for Analysis and Data at the Ministry of Housing, Communities and Local Government, welcomed the research:

“This paper is an important contribution to our growing evidence base. It will help ensure the effective use of future neighbourhood funding, highlighting what works — and what doesn’t.”

Why This Research Matters Now

Post-COVID, and amid cost-of-living pressures, the challenges facing the UK’s most deprived areas have deepened. Traditional regeneration efforts, often driven by external consultants or government-appointed bodies, have shown mixed results.

This report flips the script — showing that when local residents take the lead, the impact is not only felt faster but sustained over the long term.

The Big Local model offered £1 million of funding to 150 neighbourhoods, with minimal restrictions. Communities decided how to spend, plan, and measure progress. Some invested in youth centres. Others in business hubs, food projects, or local events. What mattered most was local ownership.

Community-Led Regeneration: A Blueprint for the Future?

The authors of Everybody Needs Good Neighbourhoods are calling for three key policy shifts:

1. Expand investment in neighbourhood-led initiatives — especially where social capital is low.

2. Support long-term funding models focused on building leadership and social infrastructure.

3. Encourage collaboration between councils, funders, and communities to scale this proven approach.

With millions already pledged to support new regeneration efforts across the country, the report couldn’t have come at a better time.

A Democratic Model for Change

The study also positions neighbourhood-led initiatives as a grassroots model of democracy — one that gives agency to communities often overlooked by national politics.

By putting decisions in the hands of residents, regeneration becomes not just more effective, but more inclusive.

According to data from the ONS, communities with stronger social infrastructure also tend to report higher wellbeing, lower health inequalities, and greater educational attainment. This echoes the findings of the new report and reinforces calls for community-powered change.

One Resident’s Story

In Liverpool’s Speke-Garston area, where Big Local has been active since 2012, local resident Amina shared her story:

“Before, it felt like no one cared what happened here. Now we run our own youth hub, we’ve supported dozens of small businesses, and people are proud of where they live again.”

Her words sum up what statistics alone can’t capture — the emotional and cultural renewal sparked when residents are given the tools to lead.

Event Details & Access

The report was launched today (Tuesday 1 July) at 4pm during the Local Government Association Conference at Lunyalita, Albert Dock, Liverpool.

Attendees are encouraged to visit Hall 2, Stand A50 to speak with members of Local Trust and 3ni directly.
The full report is available online:
🔗 https://localtrust.org.uk/insights/research/everybody-needs-good-neighbourhoods-2

Final Thought

If there’s one message from the Everybody Needs Good Neighbourhoods report, it’s this:

Give local people the tools, trust, and time — and they’ll deliver real change.

As governments and funders prepare to invest in the UK’s most deprived areas, this research offers not just hope, but proof.