Community Wealth Building (Scotland) Bill Fairer Scotland Duty Summary

Summary of aims and expected outcomes of strategy, proposal, programme or policy

In the 2024-2025 Programme for Government, the Scottish Government committed to bringing forward a Community Wealth Building (CWB) Bill, which seeks to ensure consistent implementation of the CWB model of economic development across Scotland and address economic and wealth inequality between individuals and communities by facilitating and supporting the generation, circulation and retention of more wealth in local and regional economies.

The Bill will support progress towards the national outcomes for the economy and the economic vision set out in the National Strategy for Economic Transformation: a society in which everyone can participate in economic success, one that is thriving across economic, social and environmental dimensions and that delivers prosperity for all Scotland’s people and places. By taking a CWB approach to economic development we can create the conditions that supports our entrepreneurs and businesses to thrive, grow and create wealth that improves not only their business resilience and viability but that of our local economies.

On 31 January 2023, the Scottish Government published a consultation on CWB.^[1] Views and comments were sought on what future CWB legislation should look like and where existing law and policy could be changed to advance action on CWB. The consultation received over 180 responses, which have informed the development of the Bill and the ongoing policy work to support the adoption and implementation of CWB.

The strategic planning and reporting duties included in the CWB Bill seek to ensure universal implementation of this economic development approach across Scotland whilst allowing for local, regional, and organisational flexibility. The CWB Bill will require the Scottish Ministers and public sector anchor organisations to work collectively and use the economic levers at their disposal to create meaningful action that benefits local and regional economies across Scotland.

The duties included in this Bill are:

Duties on Scottish Ministers

The Scottish Ministers will be required to lay in Parliament a CWB statement which sets out measures that the Scottish Ministers are taking or intend to take to reduce economic and wealth inequality between individuals and communities and support economic growth by facilitating and supporting the generation, circulation and retention of wealth in local and regional economies. The Scottish Ministers will be required to consult on a draft of the CWB statement and publish their inaugural CWB statement within 18 months of the relevant section coming into force. Thereafter, the Scottish Ministers will be required to review the CWB statement before the end of the period of 5 years and a new statement must be laid in parliament every 5 years.

The Scottish Ministers will be required to issue guidance to assist local authorities and relevant public bodies to produce CWB action plans and to assist specified public bodies in developing their corporate plans and associated strategies. The Scottish Ministers will be required to publish this guidance within 18 months from the relevant section coming into force.

Duties on Local Authorities and Relevant Public Bodies

Local authorities and relevant public bodies as set out in the Bill, including Territorial Health Boards, Regional Colleges, Scottish Enterprise, South of Scotland Enterprise, Highlands and Islands Enterprise, Skills Development Scotland, and Regional Transport Partnerships, known as a CWB Partnership, will be required to jointly prepare and implement a CWB action plan to outline the measures they plan to take to support the generation, circulation and retention of wealth in the local or regional economy. This CWB action plan must be consulted upon and published by the local authority not later than 3 years after the relevant section comes into force. Local authorities and public bodies will be required to review their CWB action plan at their discretion but at least every 5 years.

Local authorities and the relevant public bodies will be required to have due regard to guidance produced by the Scottish Ministers while developing their CWB action plan.

Duties on Specified Public Bodies

Specified public bodies, including Creative Scotland; Crown Estate Scotland; Highlands and Islands Airports Limited; Historic Environment Scotland; Integration joint boards; National Park authorities; Chief Constable of the Police Service of Scotland; Scottish Canals; The Scottish Courts and Tribunals Service; The Scottish Environmental Protection Agency; The Scottish Fire and Rescue Service; Scottish Forestry; The Scottish Further and Higher Education Funding Council; Scottish Futures Trust Limited; Scottish Land Commission; Scottish National Investment Bank plc; Scottish Natural Heritage; Scottish Sports Council; Scottish Water; Special Health Boards; VisitScotland, will be required to have due regard to CWB guidance produced by the Scottish Ministers when developing their corporate plan and associated delivery strategies.