Meeting of the Parliament (Hybrid) 25 May 2022
I am sorry, but I need to make some progress.
Community wealth building can combine the resources of all anchor partners, be they project resources or mainstream budgets, and it can provide a joined-up and streamlined prism for jointly co-ordinating economic planning and delivery.
The model represents a practical focus on economic development in real communities, with the potential to deliver a progressive wellbeing economy for Scotland; more and better fair work opportunities; business growth and the emergence of new co-operative and employee-owned models; more community-owned assets; more stable local populations enabled by new economic opportunities; and shorter supply chains supporting net zero ambitions.
The Scottish Government wants to use community wealth building as a means of rewiring how we foster local and regional economies. The model is a relatively new one, but it is not a rebranding of previous approaches or a high-level mission statement. Community wealth building is a new organising principle that is also a hard-headed, practical and operable economic development model.
The model relies on five pillars of activity. The first is spending and is about how the public sector procures with the private and third sectors and uses its wider investment power.
The workforce pillar is all about ensuring that the conditions that are attached to current and future jobs adhere to what, in Scotland, we call the fair work first principles.
With the inclusive ownership pillar, the model seeks to grow employee-owned and co-operative businesses that offer employees a deep stake in the place where they work.
The objective of the land and property pillar is to identify new opportunities for community ownership of assets, or at least a clear focus on providing local communities with the material economic benefit from the use of land.
Finally, the model has a pillar that is focused on flows of finance or borrowing, with the emphasis on attracting more ethical lending to help local and regional businesses grow.
I turn to some examples of progress that has been made with the model. In doing so, I will embark on a whistle-stop tour from the north-east United States to the north-east of England before returning home to Scotland.
In Cleveland, six anchor institutions—including Case Western Reserve University and the Cleveland Clinic—with the support of the city government, helped to incubate a network of three employee-owned co-operatives that employ residents from low-income communities. The Evergreen co-ops grow food, are engaged in community energy projects and provide laundry services to a range of anchor organisations. Employees benefit from a living wage and a profit share scheme.
Inspired by what it saw in the US, Preston in England took up the mantle, creating 1,600 additional jobs, as well as achieving an additional £70 million of net investment in the city’s economy from anchor institutions and £200 million for the regional economy.
Over the past few years, those examples have inspired local authorities and their partners in Scotland to advance community wealth building. We are supporting the work of five pilot areas—in Clackmannanshire, the south of Scotland, the Western Isles, the Tay cities and Fife, and the Glasgow city region—all of which have developed and begun implementing their community wealth building action plans.
Our Covid recovery strategy commits the Scottish Government to working with all local authorities to develop action plans. Through the Ayrshire growth deal, we are investing £3 million in community wealth building to support businesses and communities across the region to enhance local supply chains, ensure fair work and maximise local assets. The region has benefited from North Ayrshire Council’s trailblazing work as the first council in Scotland to adopt community wealth building.
During a recent visit to the Western Isles, I spoke to people in the village of North Tolsta, who explained how the revenue from a community-owned wind turbine was being used to support a number of local jobs and important community organisations in the village.
I met Glasgow city region representatives to hear about progress in vacant and derelict land and procurement practices, and I was heartened to hear that individual local authorities are driving community wealth building in their localities as well as through a collaborative regional approach. By establishing a pipeline of planned construction work, the Glasgow city region has been able to generate employment opportunities, including quality apprenticeships for local people.
South of Scotland Enterprise recently updated me about its work with local registered social landlords to develop local supply chains for green retrofitting of housing stock.
In meetings with Clackmannanshire and Fife councils, I have heard about their work, which focuses on, respectively, employability and developing supply chains that will create more local employment opportunities.
Finally, I recently attended a Community Land Scotland parliamentary reception, which highlighted the fantastic work that is under way in Scotland to promote community ownership of land and the benefits that can be derived for local economies and communities.