Why neighbourhoods matter – and the important role of local infrastructure

Across public services, regeneration and local democracy, “neighbourhoods” are becoming more prominent. From Integrated Neighbourhood Teams in health, to regeneration plans and new local governance models, the neighbourhood is being positioned as the place where services are delivered, and decisions are made closer to where people live.

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This shift creates a major opportunity for the VCSE sector. Neighbourhoods can be defined geographically, but they are also where community action already thrives – from lunch clubs and men’s sheds to local support groups and volunteering. They are places of connection, belonging and shared identity. When public services work with this approach, services can become more responsive, more trusted, and more effective.

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But this only works when neighbourhoods are understood not just as delivery units, but as places where relationships are built, voices are heard and power is shared. And this is exactly where local infrastructure organisations (LIOs) are essential.

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Neighbourhoods: where community and public services meet

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Recent policy developments have brought neighbourhoods into sharper focus, including:

• Health and care – Integrated Neighbourhood Teams and neighbourhood health delivery

• Regeneration and growth – Trailblazer Neighbourhoods, Pride in Place and Plan for Neighbourhoods

• Community cohesion – the Common Ground Fund

• Local government reform – expansion of neighbourhood governance

• Local democracy – wider ambitions for participation and civic engagement.

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This signals an intent to bring decision-making closer to communities. But if neighbourhoods become simply new places of service delivery, rather than places of relationship, trust and participation, the potential will be lost. Public services can meet needs, but they cannot create connection or belonging. That comes from people and communities.

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Community power starts in neighbourhoods

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Neighbourhoods are not just streets and suburbs, they are where people take action on the things that matter. Community power grows when people come together with shared purpose, through community groups or place-based VCSE organisations. These groups make up the “under the radar” part of the VCSE sector: small, locally rooted, responsive and vital to community wellbeing.

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The current emphasis on neighbourhoods offers an opportunity to shift power, deepen civic participation and design services that work with communities. To do this, public services need to “do with” rather than “do to”, giving communities the space, support and recognition to shape local change.

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Connecting community action and public service delivery does not happen by accident. It happens with the support of local infrastructure organisations, who play an important role in bridging, connecting and convening in their local areas.

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The vital role of local infrastructure organisations

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LIOs are the connectors in neighbourhoods. They:

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• support community action and volunteering

• develop VCSE organisations

• convene networks and partnerships

• bridge the VCSE sector and communities with public bodies

• advocate for the sector in local decision-making.

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Recent research commissioned by DCMS shows that where LIOs are strong, the VCSE sector is more confident, more connected and more successful in securing funding. Communities benefit from stronger organisations, more volunteering and better access to support. Public bodies benefit from clearer insight into local needs, more effective commissioning and better decision-making.

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Where LIOs are absent or under-resourced, the picture reverses: fragmentation, duplication, weaker participation and fewer opportunities for communities to influence change.

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Neighbourhood working cannot succeed without the specialist convening, bridging and connecting role of local infrastructure. It needs recognition, appreciation and, crucially, investment.

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What now?

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If neighbourhoods are to become places where people, communities and services work together effectively, we need to:

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1. Invest in local infrastructure capacity

The work of connecting, convening and bridging is essential – and must be sustainably funded.

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2. Shift power and decision-making

Neighbourhood approaches must genuinely involve communities and VCSE organisations, doing with rather than doing to.

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3. Build strong cross-sector partnerships

Public bodies need strategic relationships with LIOs that recognise their value and align with shared outcomes.

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4. Recognise neighbourhoods as places of connection

Resilient neighbourhoods grow from relationships, trust and participation – the conditions that VCSE organisations and LIOs help to create.

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A generational opportunity

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The renewed focus on neighbourhoods presents an opportunity to reshape how services work by combining bottom-up community knowledge with top-down delivery, at a scale that makes sense to people. It’s an opportunity to invest in the connections that make neighbourhoods resilient, and to build systems that value people’s insight and lived experience.

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LIOs already do this work. With the right investment and recognition, they can realise the full potential of neighbourhoods – enabling communities to thrive and helping public services meet local needs more effectively.

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Download the full report here.

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