Holyrood Committee agrees general principles of Community Wealth Building (Scotland) Bill

The Bill would place a duty on all local authorities to work with public bodies to adopt a community wealth building (CWB) partnership approach. According to the Bill, this would help communities to generate and retain wealth locally and give communities a greater stake in Scotland's economy.

However, the Committee's Stage 1 report says that, although the Bill creates an obligation to act, it may not, on its own, enable or necessarily drive implementation.

Success will depend on the strength of the accompanying statement by Scottish Ministers that clearly sets out the intended policy outcomes, and the provision of clear and consistent Scottish Government guidance that helps CWB partnerships to produce action plans.

Under the Bill, CWB partnerships will be required to publish and report on the measures being taken, or which will be taken, to empower communities and strengthen local economies. Examples include buying locally, supporting job opportunities, and including fair work criteria in procurement contracts.

Complementary legislative and policy reforms to shift economic power to local communities will also be crucial, such as compulsory purchase orders to support the acquisition of land or property for community use.

As part of the Committee’s scrutiny, members visited Alloa and Irvine to observe different local CWB approaches in practice. MSPs heard about the many benefits, including safer and more vibrant neighbourhoods, improved facilities and transport links, increased employment opportunities, and a stronger sense of community pride and wellbeing.

Committee Convener, Daniel Johnson MSP said:

“Our Committee recognises the transformative potential of community wealth building, when supported by local authorities and other public bodies.

“The Bill is a significant step toward empowering communities and promoting inclusive economic development across Scotland.

“But an obligation to act imposed by the legislation may not, on its own, drive implementation. Quality guidance to support action plans, and a clear policy statement from Scottish Ministers will help to support that.”

Further legislative and policy changes will also be essential to fully realise the Bill's aims, the Committee heard. During evidence, stakeholders consistently highlighted the importance of reforms in areas such as compulsory sale orders, procurement practices, community empowerment and asset transfer.

The Convener continued:

“The Committee agrees these changes are vital and asks the Scottish Government to outline how the broader policy landscape will be adapted to support the Bill's success.”