Wellbeing economy governments partnership: annual engagement report

3. Policy labs

Policy labs are the platform through which officials from each WEGo government can share experience and expertise. They provide a forum for officials to engage in practical exchange on specific policy areas, technical details and shared interests. Policy labs are held regularly throughout the year, typically comprising of a presentation from one or two government(s) followed by a productive discussion involving all member governments.

3.1 Circular Economy (3 December 2024)

Circular Economy (CE) is an approach that challenges how we think about resources and production systems. Focussed on eliminating waste and continually reusing resources through recycling, repairing, and remanufacturing. It contrasts with the traditional more linear “take-make-dispose” model by designing products and processes that keep materials in use for as long as possible, minimising environmental impact. Wales’s circular economy is a key component of its broader sustainability and climate strategy. Guided by its 2021 Beyond Recycling strategy, it aligns with Wales’s commitment to become a zero-waste nation by 2050 and supports its wider Wellbeing of Future Generations Act objectives^[1].

Wales presented on its journey toward a high-performing circular economy, with a particular focus on waste management and recycling. Wales now ranks 2^nd globally for high-quality, separate recycling, having reduced landfill use from 95% in 2011 to just 0.9% in 2024. This transformation was driven by the 2002 Waste Strategy, which embedded recycling within a sustainable development framework. Successive legislation, strong ministerial commitment, and a preventative approach to resource use have driven progress as Wales’s collaborative model—uniting government, business, and communities—seeks to design out waste, keep materials in use, and regenerate natural systems, shifting from a traditional linear economy to one that is restorative and regenerative by design.

Wales emphasised that recycling is only one part of a broader circular economy strategy^[2], which also targets resource efficiency, emissions reduction, and long-term supply security. A key strategic focus has been the integration of CE goals into broader economic and social policy, with targets set for 2025–2050. These include promoting green jobs and sustainable growth. Wales has used economic tools such as landfill taxes and fiscal instruments to drive behaviour change and incentivise innovation. The CE strategy has attracted investment and supported micro-businesses that repurpose recycled materials into new products.

Evidence-based policymaking has been central, with science, stakeholder collaboration, and international learning shaping the approach. Wales highlighted the importance of cross-departmental governance, stakeholder engagement, and data-driven decision-making. The “Prosperous Wales”^[3] goal is embedded across policy areas, supported by 26 National Indicators^[4], including non-recycled waste per person. Wales acknowledged cross-border enforcement challenges but expressed openness to UK-level collaboration. Continued innovation, international cooperation, and strong governance were identified as key to sustaining progress.

3.2 Community Wealth Building: A Scottish Experience (9 September 2025)

Community wealth building (CWB) is an economic development approach that prioritises local ownership, fair employment, and the use of local assets to keep wealth circulating within communities. It seeks to build a more inclusive and resilient economy by redirecting investment, procurement, and resources toward local people and enterprises. Scotland presented on its experience with CWB which was first piloted by North Ayrshire Council in 2016, drawing inspiration from international models such as Preston (England) and Cleveland (USA). The approach seeks to reshape local economies by retaining wealth within communities, primarily through the influence of local anchor institutions like hospitals, colleges, and universities.

The Scottish Government formally adopted CWB in its 2020-21 Programme for Government (PfG), committing to expand the model and introduce supporting legislation. This led to the designation of five pilot areas: North Ayrshire, Fife, Clackmannanshire, Western Isles (Comhairle nan Eilean Siar), Glasgow City Region, and South of Scotland. Each developed tailored action plans based on CWB’s five pillars: inclusive ownership, workforce, land and property, finance, and spending. These pilots laid the foundation for national implementation. In March 2025, the Community Wealth Building (Scotland) Bill^[5] was introduced to Parliament. Now at Stage One, the Bill aims to embed CWB principles across public sector operations, requiring local authorities and public bodies to produce action plans and integrate CWB into economic development strategies. It forms part of Scotland’s broader ambition to build a Wellbeing Economy that tackles inequality and fosters local prosperity.

Scotland’s approach^[6], while inspired by cooperative models in Cleveland, Ohio, has evolved through strategic use of public procurement and investment. Unlike grassroots-only models, it seeks to scale CWB nationally through legislative and policy integration. Key provisions of the Bill include

• Strategic partnerships between local authorities and public bodies
• A statutory CWB Statement from Scottish Ministers covering finance, fair work, and procurement
• Flexibility to adapt the legislation post-enactment based on practical experience

Case studies such as North Ayrshire’s CWB programme and the community-owned wind turbine in North Tolsta (Isle of Lewis) illustrate the model’s impact. Rural areas, in particular, have excelled in community energy generation due to simpler ownership structures. Currently, 28 of Scotland’s 32 local authorities are engaged in CWB initiatives. Support infrastructure includes practitioner networks and a Centre of Excellence, with CWB principles now embedded across multiple policy areas.

Other examples of CWB in practice include:

• Insights from the Baseline Mapping of Community Wealth Building Activity Across Scottish Local Authorities (Improvement Service)
• Community Wealth Building Toolkit (Creative Scotland)
• Implementing Community Wealth Building (Economic Development Association Scotland)
• Community Wealth Building and Land (Scottish Land Commission)

3.3 The Welsh Future Generations Act: Findings from the Commissioner’s Report (14 October 2025)

Enacted in 2015, the Wellbeing of Future Generations (WFG) Act^[7] marked a global first in legislating for sustainable development and long-term thinking. It requires public bodies to consider the wellbeing of both current and future generations across social, economic, environmental, and cultural dimensions. The Act has shaped Wales’s approach to climate action, poverty, and cultural preservation. Now, in 2025, the Act celebrates its 10-year anniversary, offering a moment to reflect on its impact, global influence, and the challenges that remain in fully realising its vision.

Wales presented its commissioner’s report findings^[8] after a decade of enactment of the WFG Act, highlighting its role in embedding long-term sustainability and wellbeing into public governance. The Act, supported by the Future Generations Commissioner, mandates that all public bodies align with seven wellbeing goals, inspired by the UN Sustainable Development Goals. Central to the presentation was the “Prosperous Wales” goal, which promotes a low-carbon, innovative economy and challenges GDP as the sole measure of success.

Wales has developed a five-yearly “State of the Nation” report to assess progress and guide economic strategy. The latest review identified five key findings: improved alignment of economic governance with Wellbeing Economy (WE) principles; persistent tensions between circular economy goals and traditional metrics; limited but growing Living Wage accreditation; increasing adoption of foundational economy approaches; and practical policy examples such as local procurement and Circular Economy initiatives.

Wales emphasized the need to embed WE principles into core economic strategy, strengthen procurement to support local enterprises, and expand Living Wage accreditation. The foundational economy approach—focused on local wealth retention and cooperative models—is gaining traction. Cross-sector collaboration and the development of alternative success metrics were identified as essential next steps. Wales highlighted the challenge of balancing short-term demands with preventative investment. Strong ministerial engagement and feedback from 56 public bodies have helped maintain progress, supported by regular case studies and webinars to share learning. Ongoing collaboration between the Commissioner and ministers ensures alignment, reinforcing Wales’s commitment to innovation, inclusive governance, and redefining success through wellbeing.