VONNE recently brought together VCSE leaders, funders, academics and representatives from the Tees Valley Combined Authority (TVCA) to explore a vital question: what role does the voluntary, community and social enterprise (VCSE) sector play in shaping the region’s economic future?
The event marked the launch of our new report, ‘Unlocking Potential : Recognising the VCSE Sector in Tees Valley Growth’, which showcases the economic value of the VCSE sector in the Tees Valley. More importantly, it marked the beginning of what we hope will be an ongoing and constructive conversation with TVCA about growth, collaboration and shared ambition.
The VCSE Sector Matters to the Economy
Opening the event, VONNE Chief Executive Martin set out why this conversation is so important.
“The VCSE sector matters to the economy – that is the central theme of the report, and the core focus of our conversation today.”
In the context of the TVCA Local Growth Plan (LGP) and recent consultation events, the question posed to the sector was: what can the Local Growth Plan do for you?
“The real issue we should be focused on is what can the VCSE sector do for the LGP? And, the answer is simple – a whole lot. If we want to tackle the underlying challenges holding back the Tees Valley economy, the VCSE sector is not peripheral – it is central.”
Economic growth in the Tees Valley is often associated with large-scale industrial development – “hard hats and hi-vis jackets,” as Martin described it. While high-productivity industries are crucial, they are only part of the picture.
The biggest part of the region’s economy is the foundational economy: transport, childcare, education, health and the everyday services that make life work. In fact, 85% of jobs in the Tees Valley sit within this part of the economy.
Yet too often, the foundational economy – and the VCSE organisations that underpin it – are overlooked in growth strategies. Our report argues that recognising and investing in this everyday economy is essential if we want growth that is inclusive and sustainable.
As Martin put it, borrowing from popular culture: “Who you gonna call? The unusual answer to that is the VCSE sector.”
Behind the humour was a serious point: the sector provides practical answers to some of the region’s most entrenched economic challenges.
Poverty, Participation and Productivity
Our panel discussion explored these themes in more depth.
Amanda Bailey, Director of the North East Child Poverty Commission welcomed the report’s focus on child poverty, challenging the assumption that economic growth alone will solve it. In some parts of the Tees Valley, up to 69% of children are living in poverty. Poverty is not simply a result of weak economic performance; it is a barrier to participating in the economy at all.
Leah Swain, Chief Executive of Woodsmiths Foundation, a Tees Valley funder, highlighted a front-line perspective, connecting economic ambition with everyday realities. Employees who are worried about children with special educational needs, or struggling with food and fuel poverty, cannot fully focus at work. The VCSE sector often “plugs the gap”, providing the support that enables people to stay in employment and contribute productively.
The message was clear: productivity depends on participation – and participation depends on strong, trusted community organisations.
Better, Not Just Bigger
Dr Luke Green, Research Associate at Insights North East, offered an academic perspective on the foundational economy. While interest in it is growing, policy still tends to prioritise high-tech and frontier industries. For most people, however, it is everyday services that shape quality of life and economic stability.
A successful Local Growth Plan is not about choosing between industrial and foundational approaches; it requires both.
Luke emphasised that growth cannot be measured by GDP (Gross Domestic Product) or GVA (Gross Value Added) alone. Growth should be understood as “better, not just bigger.” Survival, stability and incremental improvements – the things that maintain services, strengthen cohesion and build pride in place – are valid and valuable forms of growth.
Lynn Pallister, Community Enterprise Manager at FROG (Future Regeneration of Grangetown) reinforced this by highlighting the role of social enterprises and community organisations as economic actors in their own right. She called for longer-term, place-based funding and greater trust from funders, enabling VCSE organisations to deliver lasting impact rather than short-term fixes.
An Open Door to collaboration
Sarah Walker, Director of Business Solutions at the Tees Valley Combined Authority (TVCA), described the Local Growth Plan as a high-level framework that will require a multi-agency approach to succeed. She welcomed VONNE’s report as a timely and data-driven contribution to the conversation.
With ambitions to see 10,000 more businesses created and 14,500 more people in employment, the scale of the challenge is significant. TVCA does not yet have an agreed outcomes framework for the LGP – presenting a real opportunity for the VCSE sector to help shape what success looks like.
The Start of a Conversation
This event was not an endpoint. It was the start of a conversation.
All of the panellists expressed a desire for meaningful conversations, embedded in establishing collaboration to continue.
Leah asked for all who have the power to make it possible to convene conversations, with funders, community anchors (hyper-local community players) and health organisations all invited to the table.
Luke called for action beyond panel discussions and policy papers. And Sarah asked for 2 or 3 priorities to be identified to TVCA showcasing how effective partnership should look and what is needed to build strong relationships.
Over the coming months, VONNE will work with the VCSE sector to establish what successful engagement and collaboration with the Tees Valley Combined Authority should look like. We’ll also be building on our ambition to strengthen VONNE’s presence in the Tees Valley to better support the sector on a regional level.
Together, we want to define:
- What meaningful consultation means in practice.
- How VCSE expertise should be valued and resourced.
- How an outcomes framework can reflect inclusive, place-based growth.
- How growth can be better, not just bigger – and truly for everyone.
The VCSE sector is ready to play its part. Now is the moment to shape a partnership that recognises its full economic and social value.
Thank you for Waythrough and Tandem Hub for supporting this work and the event.
If you’re a Tees Valley organisation and you’re interested in supporting future conversations, get in touch with us by contacting our Policy Manager, Siobhan Flynn at siobhan.flynn@vonne.org.uk
Be part of VONNE’s collective voice by joining us as a member.
Download and read VONNE's report, Unlocking Potential : Recognising the VCSE Sector in Tees Valley Growth here.
