A new report has called on the government to adopt Community Municipal Investments (CMIs) as part of its devolution strategy.
Starting from as little as £5, CMIs enable people to loan money to UK councils for a return, helping to fund local infrastructure and regeneration projects. The initiative allows residents to actively contribute to their community, building trust and strengthening relationships with local councils.
Offering similar benefits to Premium Bonds, but for local authorities rather than national government, CMIs pay fixed cash interest payments to investors every six months, usually across a five-year period.
CMIs need to be included as part of the negotiations with local government over the way in which central funding and debt programmes combine to deliver local services, programmes and infrastructure.
A new report, Making Places Better, Together, authored by Mark Davis, Professor of Economic Sociology, and Dr Emma Hyde, both from the University of Leeds' School of Sociology and Social Policy, has now urged the government to promote CMIs as part of its devolution plans.
Professor Davis said: “CMIs need to be included as part of the negotiations with local government over the way in which central funding and debt programmes combine to deliver local services, programmes and infrastructure.”
The report collates evidence from 19 participating councils across the UK, raising almost £30 million so far. Its findings indicate that CMIs are delivering both financial value to councils and investors, as well as meaningful civic value through improving places and restoring pride in the work of local government.
Sheffield City Council, which launched its first CMI in late 2025, has already raised £1 million for climate projects across the city.
Cllr Ben Miskell, of Sheffield City Council, said: “The response from the people of Sheffield, local businesses and investors further afield has been nothing short of sensational.”
Published alongside a Technical Paper by the Green Finance Institute (GFI), which focuses on the financial impact of the model, the new report by Leeds demonstrates that CMIs foster a reciprocal and beneficial relationship between councils and residents.
Breaking down barriers
Cllr Minesh Parekh from Sheffield City Council said: “It’s participatory. And I think that’s a real strength of it. It gets people on board with the idea that they’re doing things in their areas. People often feel so separated from decisions that are taken for them, rather than by them. So, things like this break down those barriers. Even if they don’t invest in it, people feel really involved in it because it’s a mass thing that the community is involved in. There’s a lot of value in it because it makes people feel like the council is theirs again.”
The evidence presented in this report, and the linked Technical Paper by the Green Finance Institute, makes the case that CMIs can evolve into a “Local Savings and Investment” (LS&I) offer: a permanent, scalable and resilient pillar of public finance that delivers financial value for councils and civic value for society.
Miles Ashton, Associate Director at the GFI, said: "The key to successful delivery of the government's devolution agenda is unlocking finance. CMIs represent an opportunity for local authorities to access capital and connect local investors with community outcomes. Not only do CMIs build trust and engagement with local residents, but they reduce borrowing costs and diversify funding sources, further strengthening their contribution to treasury resilience by unlocking a deep pool of patient capital."
Further information
Email media enquiries to University of Leeds press officer Paddy Wells via p.wells1@leeds.ac.uk
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