Local Digital Hubs – Revitalising Communities and Creating Opportunity Through Place-Based Investment

A headline news topic right now is Alan Milburn’s NEET review, where he has linked high numbers of youth unemployment to being on benefits, implying a cultural effect where it inhibits their motivation to work.

However this is just lazy stereotyping and really we can identify inadequate local economy investment policies and programs as the cause.

Towns in the UK aren’t being supported to grow, meaning new jobs aren’t created for the young people.

Digital Nation Infrastructure

Infrastructure for building a Digital Nation isn’t limited only to technology.

It also includes other dimensions that similarly contribute to building national capacity, such as office working facilities, especially so for Scotland’s smaller towns and rural areas.

The featured image is Atholl House in Lanark, and it’s symptomatic of this point. It’s one of a number of previously own government buildings that are now abandoned, run down and unused. There is also a tourist office and the old cinema.

Scotland could be making better use of these under-used assets, and the critical role of simple resources like office space to our digital economy ambitions.

While a national Digital Economy strategy sets the direction and unlocks major infrastructure and policy levers, real momentum often begins at the local level. Across the UK, towns and cities grappling with youth unemployment and economic stagnation possess under-used assets that, with targeted investment, can become powerful engines for digital growth.

Rejuvenating derelict buildings into modern co-working spaces, combined with tailored support programmes for entrepreneurs, offers a practical, high-impact route to channel digital opportunity directly into communities that need it most.

Digital Enterprise Hubs

Many high streets and former industrial areas contain vacant warehouses, empty office blocks, and neglected civic buildings.

These spaces represent wasted potential. Converting them into affordable digital co-working hubs can provide young people and aspiring entrepreneurs with the physical infrastructure they need to start and scale businesses—reliable high-speed broadband, flexible workspaces, meeting rooms, and access to shared equipment such as 3D printers, video editing suites, and computing resources.

Local authorities, working in partnership with central government, can play a catalytic role. Through targeted regeneration funds, tax incentives, and simplified planning processes, councils can accelerate the transformation of derelict sites.

For example, a former mill or department store could be retrofitted into a “Digital Enterprise Hub” offering tiered membership: free or subsidised desks for recent graduates and young entrepreneurs, alongside paid spaces for more established firms. This mixed model creates natural mentoring opportunities and builds a vibrant local ecosystem.

Effective initiatives go beyond bricks and mortar. Successful programmes pair physical space with comprehensive business support. These typically include:

• Mentorship and Skills Development: Regular workshops on digital marketing, coding basics, AI tools, e-commerce, and financial management, delivered in partnership with local colleges, universities, and tech firms.
• Access to Finance: Micro-grants, seed funding competitions, and easier connections to angel investors or venture capital networks focused on regional opportunities.
• Digital Government Integration: One-stop online portals where entrepreneurs can access business rates relief, planning permissions, skills funding, and public procurement opportunities. Real-time data dashboards could match local talent with emerging opportunities in the digital economy.
• Incubation and Acceleration: Structured programmes that help early-stage businesses refine their ideas, test products, and reach their first customers—particularly in high-growth areas such as green tech, health tech, creative digital content, and local service platforms.

Evidence from similar projects shows strong returns. Converted spaces in cities like Manchester, Birmingham, and smaller towns such as Middlesbrough have demonstrated higher start-up survival rates, increased local employment, and spillover effects on surrounding high streets through increased footfall and renewed pride in place. Young people, in particular, benefit from accessible, low-risk environments where they can experiment without needing significant personal capital or moving to London.

To scale this nationally, a joined-up approach is essential. Central government can provide matched funding streams through a “Digital Regeneration Fund,” prioritising areas with high youth inactivity rates.

Local Enterprise Partnerships and combined authorities should align their economic plans with digital skills pipelines, ensuring training programmes feed directly into these new hubs. Private sector involvement—through sponsorship, corporate mentoring, or anchor tenancy—further strengthens sustainability.

Crucially, these local initiatives must be inclusive. Outreach to NEET (Not in Education, Employment, or Training) groups, care leavers, and underrepresented communities ensures the benefits reach those furthest from opportunity. Digital Government tools, such as targeted apps and data analytics, can help identify and support individuals early, preventing long-term disconnection from the labour market.

Conclusion

By investing in physical digital infrastructure at the community level, Britain can move beyond top-down policies to create a genuinely distributed digital economy. Derelict buildings become beacons of possibility. Young entrepreneurs gain the space, support, and networks they need to thrive. And local economies gain the resilience and dynamism required for long-term prosperity.

The challenge of youth unemployment—and broader economic renewal—will not be solved by remote strategies alone. It demands tangible places where ambition meets opportunity. Local digital hubs represent one of the most promising investments a forward-thinking government and its partners can make.