Publication - Independent report

Supporting impact - Scottish Crown Estate net revenue: local authority use and insights

Net Revenues from the Scottish Crown Estate have been distributed to coastal Local Authorities for the benefit of coastal communities since 2019. This study was commissioned as part of the review process for the first two rounds of distribution of Scottish Crown Estate net revenues.

Supporting impact - Scottish Crown Estate net revenue: local authority use and insights
Annex 2: Guidance provided to Local Authorities on rounds one and two net revenue use

Annex 2: Guidance provided to Local Authorities on rounds one and two net revenue use

Date Source Key sentences This means…
2012 Coastal Communities Fund With the aim of encouraging the economic development of UK coastal communities by awarding funding to create sustainable economic growth and jobs. Sustainable economic growth/development
July 2013 Lerwick Declaration, July 2013 We believe that the people who live and work in Scotland are best placed to make decisions about our future - the essence of self-determination; therefore we support subsidiarity and local decision making Local decision-making
June 2014 "Empowering Scotland's Island Communities", June 2014 (extended to coastal councils in 2016) Three underpinning objectives: promoting island voices, harnessing island resources and enhancing island wellbeing. Use of resources
(Net revenue section) Net income from activities within 12 nautical miles will be passed to individual councils and each will be responsible for administering their own fund, determining how funds are spent, who will benefit and the level of benefit. Council responsibility
(Net revenue section Each council can administer their own fund for pump priming projects that can deliver social and economic benefits and empower local communities New initiatives Social and economic benefits
(Net revenue section) Scottish Ministers and the Councils will ensure transparency on revenues generated and how they are spent. Transparency
(Community benefit section) Councils can have a central role in ensuring that community benefit is shared equitably and strategically to communities in their island groups. Equitable distribution
(Community benefit section) Council would have a strategic role in aligning the distribution of benefit with national and local priorities, securing agreement as required within Community Planning Partnerships to assure the direction of benefit towards communities. Alignment with national and local priorities
Sept 2020 Update letter for fund rollover and monitoring, Sept 2020 Funds from their allocation this year could be used to support businesses, including Third Sector organisations, in need as a result of the Covid-19 pandemic while continuing to align with the general purpose of the funds being to deliver benefit to coastal communities. Exceptions during Covid-19 years
The allocations already provided to local authorities to date can be carried over into 2021/22, with requisite monitoring and accountability to demonstrate delivery of benefit to coastal communities. Used within one year, with noted exceptions
Reporting in a proportionate way on spend from Crown Estate Scotland net revenues. Proportionate reporting
Sept 2019 Letter to Directors of finance To enable coastal local authorities to fund coastal community benefit. Coastal community benefit
During the first year of the new arrangements there is a need to ensure that from this amount funds are made available for the continuing requirements of coastal community projects under the current Coastal Communities Fund round. Follow-on from CCF
Scottish Ministers' expectation is that local authorities will use the funding for additional expenditure in 2019-20 that specifically benefits coastal communities, with individual local authorities making decisions on funding of projects to benefit coastal communities and being transparent and accountable to their communities and others for the expenditure. Use within one year Benefit to coastal communities Transparency and accountability
There is an expectation that there will be transparency and accountability on how the money is spent. Transparency and accountability
That the CCF in Scotland is replaced with the new arrangements for funding coastal community benefit from Scottish Crown Estate net revenue. Follow-on from CCF
January 2020 Letter to directors finance clarification in response to LA queries The funding allocation is provided as revenue but could be used, where needed, for capital expenditure if individual local authorities have such arrangements in place. Possibility for capital expenditure
It is our preference, as outlined in the letter, that the allocations to local authorities should be used for coastal community benefit this financial year so that benefits can be delivered as soon as possible. Use within one year
It has been our expectation that the funding would be prioritised towards new initiatives (including potential new initiatives being led by organisations that already receive funding from the council) in order to add value. Prioritised towards new initiatives
It will ultimately be for each local authority to decide how they utilise the money as long as the funding is appropriately invested to bring benefit to coastal communities. Local authority responsibility Benefit to coastal communities
We can see potential value in councils considering funding for existing initiatives if it is not possible to identify suitable new initiatives for some or all of the allocated funding in any one year. Prioritised towards new initiatives
We would also encourage councils to consider what consultative processes may be needed before finalising their approach to delivering coastal community benefit. Consultative approach
April 2020 Letter to Directors of Finance in response to LA enquiries It is important that any financial support provided to businesses and Third Sector organisations from this funding appropriately complements any other financial support which such operations may receive from the UK and Scottish Governments, ensuring avoidance of inappropriate duplication of funding (e.g. COVID-19). Complementation of funding during COVID-19
April 2020 Update to fund remit (Covid emergency) April 2020 The fund from Scottish Crown Estate net revenues, is normally used for projects delivering coastal community benefit. Coastal community benefit
Sept 2020 Update letter for fund rollover and monitoring, Sept 2020 Funds from their allocation this year could be used to support businesses, including Third Sector organisations, in need as a result of the COVID-19 pandemic while continuing to align with the general purpose of the funds being to deliver benefit to coastal communities. Coastal community benefit Covid-19 exceptions
The allocations already provided to local authorities to date can be carried over into 2021/22, with requisite monitoring and accountability to demonstrate delivery of benefit to coastal communities. Coastal community benefit Demonstration of benefit Use within one year (with exceptions)
Reporting in a proportionate way on spend from Crown Estate Scotland net revenues. Proportionate reporting

Contact

Email: CESU@gov.scot