Community schemes are taking matters into their own hands to create the services and spaces they want to see, through a unique funding strategy making waves in the investment market.
Since 2012, £210 million has been raised through community share offers, a collaborative, grassroots approach to raising money for what matters, according to Co-operatives UK.
The idea is that members of a community who are motivated to take action on something important to them – for example, an arts centre, a pub, a renewable energy scheme, or libraries and gardens – can club together and invest in it themselves.
Community members buy shares in the project themselves and become members of the co-operative.
No matter the size of the donation – which can range between £100 and tens of thousands of pounds – every member has an equal say in how the businesses or initiative is run and used.
More than 130,000 people across the UK have become investor members in their area in the past decade.
This community share models are also financed by charity grants and other development funds, which can double the amount invested by the community.
The Community Shares Unit of Co-operative UK has been working for the industry since 2012 and has seen a shift in where communities want to invest their money.
Rose Marley, CEO of Co-operatives UK, shared in the report: “Community shares are enabling communities in innovative and life changing ways while ensuring that ownership and control of these community businesses stays with the people they matter to the most.”
Back in 2015, 69% of community share offers financed new energy schemes.
In the latest 2023 report, this number has shrunk to just 14%, while at the same time the sectors invested in have diversified – and community pubs come have come out on top.
Schemes to save local pubs have risen from just 5% of all investment schemes to 46%.
In real terms, 2015 saw five initiatives to invest in local pubs, compared to the 26 running in 2023.
But community investment in pubs isn’t just for good nights out.
The Community Shares Unit report identifies the role of these pubs as more than places to drink, rather, transforming into social hubs which serve multiple purposes after group capital investment.
The spaces can serve as social clubs for people who are isolated, for charity operations, as a local arts space, and as spaces for local celebrations – uses are diverse, and reflect the specific needs of each community.
One such successful community share scheme was The Star of Greenwich, a southeast London independent pub which was saved by a team of residents who run it to this day.
After an incident in 2021, the pub lost its licence and the freeholder decided to sell, risking it being demolished and replaced with a block of flats.
A small team of three members of the Greenwich community, led by James Gadsby Peet, decided to save it and transform it.
They set up a community benefit scheme and raised money from donations which doubled their original target.
Now the uses of the pub are endless.
The group’s mission statement explaining their intention was “not only save a beloved local landmark but to turn it into a thriving hub for all – a place that supports local people, nurtures community projects, and fosters connections.”
The pub re-opened in April 2023, and a year on hosts seasonal events, serves as charity HQs, puts on clubs and social initiatives, has a children’s play and learning area, and has many plans for the future.
James explained: “The Star of Greenwich isn’t just a pub; it’s a testament to the power of community spirit and collective action.
“Through the community benefit scheme, we’ve transformed it into a vibrant hub where local life thrives.”
However, the immediate future of the Star of Greenwich looks rocky, struggling from high costs and low profits as the whole community feels the effects of the cost-of-living crisis.
It doesn’t come as much of a surprise given the current economic climate for England’s beloved boozers, as recent insight into the hospitality industry from AlixPartners shows a 43.6% decrease in the number of high street, drink-led pubs in the last 20 years.
Effects of the pandemic have resounded in the sector, with independent pubs hit especially hard: since March 2020, the number of indie venues has shrunk by more than 14%.
But James is confident that the Star of Greenwich is an essential and valuable space.
“Saving this historic venue was crucial—not just to preserve a place to drink, but to sustain a space where people gather, celebrate, and support each other.
“It’s our community’s living room, where everyone, from toddlers to seniors, can find something to enjoy and feel at home, and this initiative underscores our belief that when a community comes together, anything is possible.”
Community share offers bring more than just capital to the table – they’re motivated by intentional social improvements, inclusion, and cohesion.
Image credit: Joshua Bright https://www.joshuabright.com/
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