We’d love to say we spotted the power of recycling local money first but the LM3 multiplier mindset comes courtesy of the NEF and their new ÔÇÿ3 rounds of spending’ model. When the LM3 methodology was applied to a Northumberland City Council it showed that every £1 spent with a local supplier is worth £1.76 to the local economy, and only 36 pence if it is spent out of the local area. That makes £1 spent locally worth almost 400 % more to the local economy.
LM3 has now been applied to over £13 billion pounds of spending in public private and not for profit sectors. Suffice to say LM3 is very close to our Payji heart and is the spark that drives our desire to create solutions like our people-powered payments platforms that can feed the LM3 effect and make good things happen for local people. Learn more about LM3 here.