In 2021, Frontier Economics demonstrated how investing in social infrastructure could generate wide-ranging social and economic benefits for disadvantaged neighbourhoods. But what happens when these early investments begin to bear fruit? How do we ensure these communities continue on a path toward lasting regeneration and opportunity?

Our latest analysis picks up where the 2021 report left off. Drawing on our work for the Independent Commission on Neighbourhoods (ICON), we explored the impact of a targeted programme designed to support Stage 2 of neighbourhood renewal—focused on places already "primed" with social infrastructure and ready to scale up for deeper, broader impacts.

The results are striking. Conservative modelling suggests that investing in Stage 2 could yield a return on investment (RoI) of £3.50 for every £1 spent—signalling high to very high value for money. Beyond this, many qualitative benefits, such as enhanced social cohesion, civic pride, and improved quality of life, remain unquantified but are no less important.

Why Stage 2 matters

Scaling social infrastructure at this pivotal juncture is essential. Without follow-on support, initial gains risk stagnation or reversal. With it, neighbourhoods can strengthen community-led initiatives, deepen engagement, and improve integration with statutory services like healthcare and policing. This approach not only tackles entrenched deprivation but also lays critical foundations for sustainable economic growth and private sector investment in the future.

Unlocking value through targeted investments

Our updated analysis continues to focus on a community-led basket of investments across community assets, social prescribing, youth services, sports and recreation, skills and employability, family support and culture. These areas are backed by robust evidence demonstrating clear and significant returns—typically between £2 and £3.70 for every £1 spent—via improved wellbeing, reduced crime, enhanced employability, and fiscal savings. Conservative assumptions ensure the estimates remain credible and grounded, with additional unquantified benefits likely to strengthen the case further.

Looking ahead

Investing in neighbourhoods that have already begun their journey through targeted Stage 1 initiatives is not only logical but essential for avoiding wasted potential and repeated cycles of public expenditure. As the analysis shows, scaling social infrastructure investment at this crucial stage offers a compelling opportunity to drive economic, fiscal, and social outcomes—and to enable communities to shape their own futures.

Read the full report here The Impact of Scaling Social Infrastructure Investment