Community Empowerment (Scotland) Act 2015 - part 5 asset transfer: findings report review

Executive Summary

Introduction

This report presents findings from a review of asset transfers as introduced by Part 5 of the Community Empowerment (Scotland) Act 2015. The aim of this review is to present and synthesise findings on the implementation of asset transfer legislation by Relevant Authorities, explore the impact it is having on communities and assess if the appeal and review mechanisms are working as intended. Findings will help to inform what practical or statutory updates might be required for asset transfers to further empower communities.

Methodology

This review was undertaken by the Scottish Government’s Public Service Reform Directorate. It draws on a range of sources including evidence available prior to the review launch, from Glasgow Caledonian University’s three year independent evaluation of asset transfer published in 2020, the Scottish Parliament’s Local Government and Communities Committee post legislative scrutiny report in 2021 and two Scottish Government online asset transfer national conferences in September and October 2021 that were designed to share learning and gather views.

Following the review launch in July 2022, the Scottish Government gathered information from Relevant Authorities to help collate accurate data on asset transfer activity, gathered information on their experiences of implementing asset transfer legislation and invited views on any changes required to the process, by asking them to complete an additional section in the asset transfer annual reporting template in 2022 and 2023. At the Scottish Government’s request, information was also provided by the Community Ownership Support Service (COSS) which is an adviser based asset transfer information service delivered Scotland wide. COSS provided a report which outlined findings from a survey of Relevant Authorities and Community Transfer Bodies experience of the asset transfer process conducted in 2023. They also provided a report outlining their own insights based on their experience of asset transfer legislation since its introduction in 2017. Three community workshops hosted by the Scottish Government with COSS in 2023 provided further information on the implementation and impact of asset transfer legislation. During 2024, asset transfer appeal and review reports were also analysed by the Scottish Government to inform if the process was working. Finally, although separate to this review, a report from Glasgow Caledonian University published in September 2024 on UK-wide rural communities experiences of land acquisition was also considered.

The review focuses on the following key questions:

• Is Part 5 of the Community Empowerment (Scotland) Act 2015 being implemented as intended by Relevant Authorities?
• Is asset transfer legislation empowering Community Transfer Bodies to make a positive difference in Scotland’s communities?
• Are the appeals and reviews mechanisms working as intended?

Limitations

Not all Relevant Authorities returned their annual reporting template to the Scottish Government and asset transfer activity information was not available on every Relevant Authority website. In addition, in the course of conducting this review, it became apparent that there are varying recording methods used by Relevant Authorities, and furthermore, that decisions on asset transfers can span reporting years. Given these gaps and complications it has not been possible to provide detailed quantitative breakdowns on asset transfer applications. Therefore, the method of collating data needs to be reviewed to ensure the availability of robust data in the future.

Summary of Key Findings

• Relevant Authorities view asset transfer legislation positively and although the legislation can be considered a complex process to navigate, it has provided a useful legal framework and greater consistency nationally
• Asset transfer has helped Community Transfer Bodies achieve benefits for their communities and has provided community groups with a more prominent, rights supported, route to the use of land and buildings for community benefit
• The asset transfer process can be challenging for some disadvantaged or smaller Community Transfer Bodies and more work is needed to address inequalities, supported by community development services
• The review found that updates to the asset transfer statutory guidance are required including case studies and questions and answers, and it was suggested that better alignment of the Scottish Public Finance Manual with the asset transfer statutory guidance would be beneficial
• More robust information is required on Relevant Authorities registers of land as under the asset transfer legislation these should be maintained and made publicly available
• It has been difficult to gather accurate asset transfer data due to variations in local recording practices and more is required to collate robust data to better inform the impact of asset transfer legislation
• The value of peer support at a local level and a targeted model of support for smaller and newer organisations can yield positive results and this approach could be upscaled to other areas of Scotland
• Asset transfer appeals and reviews are working well and despite their complexity and uniqueness, the majority have been upheld
• Significant learning has been gained from the appeal and review reports, not previously available, which include suggestions for procedural improvements
• A UK-wide report found that Scotland is viewed as the most advanced nation in the UK for community asset acquisition due to the legislation in place and proposed opportunities should be identified to share learning with the other UK nations around what works.

Conclusion

Prior to Part 5 of the Community Empowerment (Scotland) Act 2015 coming into force in 2017, many Local Authorities and some public bodies had operated successful asset transfer schemes, mainly in relation to property they had identified as surplus for disposal. The Scottish Government introduced Part 5 asset transfer to build on this voluntary approach. The legislation introduced a right for community bodies to make requests to a wide-ranging list of public authorities for any land or buildings, surplus or not, with the proviso that the request would be agreed unless there were reasonable grounds for refusal. This legislation, the first of its kind in the UK, shifted the balance of power towards the community body and ensured that asset transfer was available throughout Scotland. This community-led action to own, lease or manage public land and buildings is a powerful tool for communities to drive change locally and achieve their own goals for the benefit of the community. This review also noted findings from a recent UK-wide report which found that Scotland was viewed as the most advanced nation in the UK for community asset acquisition due to the legislation in place.

It has not been possible to provide detailed quantitative breakdowns on asset transfer activity in this report. Although the majority of public service providers display asset transfer information on their websites as required by law, the review found that there are varying recording methods being used and decisions on asset transfers can span reporting years. Given these gaps and complications, a key finding of this review is that more work needs to be done to collate robust asset transfer data to better understand its impact.

Despite the challenges around collating asset transfer data, to provide some perspective on asset ownership, the latest Community Ownership in Scotland Report which was published in November 2024 provides information on private and public land, buildings and other assets owned by community groups in Scotland. Due to land reform and asset transfer legislation introduced by the Scottish Government, the number of groups who own assets has increased significantly over the last 20 years from 86 groups in 2000 to 533 in 2023 and this equates to 208,597 hectares which is 2.7% of the total land mass of Scotland. Asset transfer ownership is included within these figures however numbers for asset transfer lease or management are not.

Although considered a complex process to navigate by many who participated in this review, the asset transfer legislative framework is welcomed as it provides greater consistency of approach across Scotland’s public service providers. Additionally, it was reported that it has created greater awareness of the availability of public assets beyond Local Authorities, compared to before the legislation came into force. Another key advantage reported was that it has provided Community Transfer Bodies with a structured and time bound route to the use of public land and buildings, which includes appeals mechanisms to challenge decisions.

This review highlighted the need for more transparency and robust information on the lists of assets published by Relevant Authorities, known as asset registers. It also raised the need for clarification on a number of the technical requirements contained within the legislation that is required by Relevant Authorities and updates to the asset transfer statutory guidance were proposed to support this. This review also found closer alignment with other national policies such as the Scottish Public Finance Manual and the Scottish Land Fund would be beneficial.

The Community Ownership Support Service, who provide an adviser led service for individuals engaging with asset transfer legislation, made a number of suggestions for legislative changes based on their experience working with asset transfer over many years and from information they had gathered from Community Transfer Bodies as part of this review. Examples include changes to the Community Transfer Body membership numbers requirement for asset ownership; setting a minimum working day response target for Relevant Authorities to respond to a formal asset transfer request; and changes to the procedural timescales permitted for the appeals and review processes. However, any changes to legislation would have to be assessed further, including cost implications and impact on Relevant Authorities and Community Transfer Bodies. The National Asset Transfer Action Group could assist with any assessment undertaken.

This review also found that more work needs to be done to support disadvantaged or smaller Community Transfer Bodies. Targeted support from community development services was highlighted as important in this space as well as peer support at a local level. For example, a pilot project undertaken in Barmulloch, Glasgow during 2021 and 2022 enabled a local anchor organisation to provide targeted peer support for 11 small and emerging community groups to engage with the asset transfer process. This highlighted positive results that saw the groups progress their asset transfers and the model could be replicated in other areas in Scotland.

In response to the findings of this review, the Scottish Government will:

• Refresh the remit and membership of the National Asset Transfer Action Group to consider the key findings of this report
• Work collaboratively with Relevant Authorities, Community Transfer Bodies, the refreshed National Asset Transfer Action Group and key stakeholders including COSS, to explore options to strengthen the operation of asset transfers including considering proposals to update the statutory guidance
• Work with Relevant Authorities, COSLA, the refreshed National Asset Transfer Action Group and key stakeholders including COSS to explore options for gathering accurate and robust asset transfer data – including information on assets transferred into community ownership (asset type and area)
• Consider the value of independently evaluating the impact of community asset transfer ownership and lease on local communities and how this is contributing to community empowerment and public service reform