Community wealth building could have major impact on the Highlands

Proposed legislation could place a legal obligation on bodies like Highland Council or NHS Highland to help support the local economy through a future community wealth building Bill.

The proposals are part of the National Strategy for Economic Transformation which was launched by finance minister and Highland MSP Kate Forbes last year in a bid to turnaround the Scottish economy.

The government has labelled its move as “ground-breaking” and “the first of its kind in the world” as it launched the 12 week consultation before presenting a Bill to parliament sometime before the next election.

The council and other bodies like Highlands and Islands Enterprise have in the past come in for criticism by some in the private sector for not being sufficiently commercially minded.

The five pillars of community wealth building according to the government are:

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

Now feedback is being sought on four key areas, first: placing a legal duty on public bodies such as health boards and councils to use their economic levers – like sourcing goods and services – to support the local and regional economy.

Second, the promotion of co-operative, social enterprise and employee-owned businesses to ensure that more wealth which is generated locally stays local – something badly needed in the north.

Third, create fair work opportunities for local people and those who face barriers to employment and fourth ensure land and property are used for the benefit of local communities, business and the environment.

Community wealth minister Tom Arthur said: “We want to create an economy which delivers prosperity for all of Scotland’s people and places.

“Community Wealth Building is about enabling people to have a stake in the wealth that their local economy generates. This is central to our plans to reform Scotland’s economy for the wellbeing of current and future generations.

“While Community Wealth Building has grown in popularity in recent years, legislation has the potential to achieve more rapid benefits for communities, helping both people to earn incomes from fair work and more locally-owned businesses to bid for public sector contracts. Money spent locally is more likely to stay in the local economy and support local jobs.

“This public consultation will inform a Community Wealth Building Bill, which we will introduce to Parliament, to achieve these aims. I look forward to hearing a wide range of views on how we can use this process to transform our local economies to become greener, fairer and more prosperous.”

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