Holyrood committee backs community wealth building legislation

A Holyrood committee has backed the principles of community wealth building legislation.

The Community Wealth Building (Scotland) Bill would impose a duty on councils and other public bodies to create plans that would “facilitate and support the generation, circulation and retention of wealth in the local economy” which could include procuring more goods locally.

The Scottish Government would also be required to produce a statement in Parliament on actions it would be taking to reduce wealth inequalities and increase wealth in local areas.

A report from the Economy and Fair Work Committee backed the general principles of the Bill, with convener Daniel Johnson saying: “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.”

The committee warned the Bill may fall flat without further reforms, with witnesses telling MSPs that changes must be made to compulsory sale orders and procurement practices.

“But an obligation to act imposed by the legislation may not, on its own, drive implementation,” Mr Johnson added.

“Quality guidance to support action plans and a clear policy statement from Scottish ministers will help to support that.

“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.”