While the social justice argument for tackling poverty is undeniable, there are equally powerful economic justifications for why it must be a central pillar of local and regional development strategies.

Here’s why addressing poverty is smart economics:

𝟭. **𝗖𝗼𝗻𝘀𝘂𝗺𝗲𝗿 𝗗𝗲𝗺𝗮𝗻𝗱:** Poverty means minimal disposable income. Lifting people out of poverty injects vital cash into local economies, stimulating demand for goods and services, and fostering a more resilient local market. This supports SMEs and strengthens the tax base.

𝟮. **𝗨𝗻𝗹𝗼𝗰𝗸𝗶𝗻𝗴 𝗛𝘂𝗺𝗮𝗻 𝗣𝗼𝘁𝗲𝗻𝘁𝗶𝗮𝗹 & 𝗣𝗿𝗼𝗱𝘂𝗰𝘁𝗶𝘃𝗶𝘁𝘆:** Poverty creates barriers to education, skills, and health. This results in a wasted talent pool and skills shortages for businesses. By investing in inclusive growth initiatives – like quality education, affordable childcare, and targeted skills training – we empower more people to participate fully in the workforce, boosting productivity and innovation.

𝟯. **𝗥𝗲𝗱𝘂𝗰𝗲𝗱 𝗦𝘁𝗿𝗮𝗶𝗻 𝗼𝗻 𝗣𝘂𝗯𝗹𝗶𝗰 𝗦𝗲𝗿𝘃𝗶𝗰𝗲𝘀:** High poverty rates place immense pressure on local public services – healthcare, social assistance, and housing support. This diverts substantial public funds (e.g., JRF estimates UK poverty costs the state £78 billion annually in 2016) that could otherwise be invested proactively in economic development, infrastructure, or business support. Addressing poverty frees up resources for growth-enhancing investments, pay off deficits or reduce taxes.

𝟰. **𝗘𝗻𝗵𝗮𝗻𝗰𝗲𝗱 𝗦𝗼𝗰𝗶𝗮𝗹 𝗖𝗼𝗵𝗲𝘀𝗶𝗼𝗻 & 𝗜𝗻𝘃𝗲𝘀𝘁𝗺𝗲𝗻𝘁 𝗖𝗹𝗶𝗺𝗮𝘁𝗲:** Wide disparities breed social fragmentation, instability, and even crime. Businesses are less likely to invest in areas perceived as unstable. A more equitable society is a more stable society, creating an attractive and predictable environment for investment and skilled labour.

𝟱. **𝗜𝗺𝗽𝗿𝗼𝘃𝗲𝗱 𝗛𝗲𝗮𝗹𝘁𝗵 𝗢𝘂𝘁𝗰𝗼𝗺𝗲𝘀 & 𝗪𝗼𝗿𝗸𝗳𝗼𝗿𝗰𝗲 𝗣𝗮𝗿𝘁𝗶𝗰𝗶𝗽𝗮𝘁𝗶𝗼𝗻:** The strong link between poverty, poor health, and reduced productivity is well-documented. Addressing poverty improves health, reduces absenteeism, and increases the overall effectiveness of the workforce. Inclusive growth isn’t just “nice to have”; it’s a fundamental economic imperative for building dynamic, resilient, and prosperous cities and regions.