News & Views

A Bill being considered by MSPs represents a once-in-a-generation chance to transform economic development, build prosperity and address inequality and poverty in Scotland, a world-leading expert says.

Giving evidence at the Scottish Parliament’s Economy and Fair Work Committee today (Weds), Neil McInroy described the potential for Community Wealth Building (CWB) to become a statutory duty for local authorities and key partners as a potential “game changer”.

CWB is a model which amplifies a focus on ensuring wealth is generated, circulated and retained in local communities. With some community wealth activity already happening across Scotland, the new legislation would bring together actions in a “coordinated economic orchestra” in terms of creating new patterns of wealth and investment that encourage greater productivity, and economic innovation.

Mr McInroy is chair of the Economic Development Association Scotland (EDAS) and global lead for CWB at The Democracy Collaborative, a United States-based think-tank and research centre which is helping countries across the world embrace the economic development model.

The Scottish Government’s Community Wealth Building (Scotland) Bill would require local authorities to work with other public bodies and key anchor organisations in their area to publish – and implement – a CWB action plan.

Its detail was considered in an evidence session by committee members at Holyrood.

Speaking afterwards, Mr McInroy said: “The Bill in front of MSPs offers a once in a generation opportunity to change economic development by, in effect, making community wealth building a statutory requirement on local authorities and – by association – those involved in supporting action, including relevant public bodies named in the legislation.

“At present, economic development is merely a responsibility of local authorities, meaning they have the power to undertake economic development activities. This, however, is only a permissive power, rather than a statutory duty.

“This Bill is a game-changer, providing a platform for collaborative action and resource to focus on community wealth. There are, of course, challenges to overcome if the full potential of the model is to be realised. But there are huge positives to seize.”

Mr McInroy highlighted the foundations of early success in Scotland’s CWB movement, including trailblazing work in North Ayrshire, followed by projects in Clackmannanshire, Fife, Glasgow, the South of Scotland and Western Isles. Other councils are also developing action plans.

CWB is a model built in five pillars.

• Inclusive ownership: Developing more local and social enterprises which generate community wealth, including social enterprises, employee-owned firms and cooperatives.
• Workforce: Increasing fair work and developing local labour markets which support the wellbeing of communities.
• Finance: Ensuring that flows of investment and financial institutions work for local people, communities and businesses.
• Land and property: Growing the social, ecological, financial and economic value that local communities gain from land and property assets.
• Spending: Maximising community benefits through procurement and commissioning, developing good enterprise, fair work and shorter supply chains.

Mr McInroy added: “This is about fundamental economic change in light of the climate crisis, inequality, poverty and low levels of productivity.

“Plural ownership and advancing more economic democracy gives more people, communities and workers a genuine wealth stake in the economy by advancing inclusive and democratic business models such as employee-owned firms. Community-led enterprises, cooperatives and social enterprises also ensure that wealth and capital is more readily retained and circulated.”

The others who gave evidence during today’s committee session were Professor Oliver Escobar, Chair of Public Policy and Democratic Innovation at the University of Edinburgh, and Councillor Ellen Forson, Leader of Clackmannanshire Council.

EDAS, the foremost membership organisation for economic development professionals in Scotland, hosts a Community Wealth Building Centre for Excellence. More details can be found at www.edas.org.uk/community-wealth-building-scotland.