The Foundational Economy (FE), also known as “the everyday economy”, is made up of the businesses and services that people depend on for their daily needs. It includes health and social care, food, energy, housing, retail, public transport, leisure, hospitality and childcare.
In Glasgow City Region, around 60% of jobs and 40% of businesses are in the Foundational Economy, making it central to our communities and our economy. There is a growing body of evidence that strengthening these sectors, and improving pay and skills progression within them, can boost productivity and help tackle socio-economic inequalities.
Our Regional Economic Strategy recognises the importance of the Foundational Economy – identifying it as one of seven transformational opportunities and setting it out as one of nineteen action area priorities. It identified a need to increase the productivity of the FE as part of ensuring that economic growth is shared across all areas of the economy.
The Region’s Intelligence Hub have undertaken detailed analysis to better understand its contribution to jobs, businesses, productivity and inclusive growth. This work has highlighted opportunities to improve pay, job quality and resilience in key sectors such as social care, hospitality, arts and recreation, and high street retail.
The Challenge Fund
Building on this evidence, a Foundational Economy Challenge Fund pilot is being developed for launch, led by Glasgow City Council. The pilot will initially focus on the Early Learning and Childcare sector – a key part of Glasgow’s FE.
The Fund will support new ideas that improve the quality, accessibility and resilience of FE services across a series of identified challenge areas, and successful projects will receive financial support and access to resources and expertise.