PRESTON, England — In communities across Britain, funding from London was shrinking to nothing — the central equation of national austerity. But here in the fading industrial belt of northwestern England, the city of Preston took the crisis of budget-cutting as impetus for a basic refashioning.

In what has come to be known as the Preston model, the local government and other institutions began directing government spending toward local businesses. The city raised salaries for municipal employees, ensuring that they earned a living wage.

Local leaders replaced an aborted shopping mall construction project with a retro-chic market that has become a magnet for new businesses. They have aided cooperative businesses, including a farm-to-table-cafe that aims to boost the market for local produce while training people for jobs in the hospitality industry.

In short, Preston has exploited austerity as a catalyst for self-sufficiency.

Preston is not the only local council to adapt to austerity through radical experiments in governance. Other communities have doubled down on capitalism, venturing into real estate speculation in pursuit of revenues — a story not guaranteed to end in joy.