The Government’s English Devolution and Community Empowerment Bill was a landmark moment as we, alongside We’re Right Here, have spent years campaigning for community power and the introduction of a Community Right to Buy (CRTB).
But how aware are community businesses about the Bill, and how have they responded to it?
Awareness of a Community Right to Buy is high among community businesses
Although 61% were not aware of the Bill prior to our question, the majority (62%) were aware of a CRTB. This is much higher than the general public’s awareness of a CRTB (43%) – indicating that, if not the legislative proposal itself, the relevant provision has reached the right audience’s ears.
And community businesses told us they want to stay informed as the Bill continues its passage through Parliament – in person, via email, and through local and town councils.
But 12 months isn’t long enough to raise funds.
Community businesses need more time
A CRTB includes a 12-month moratorium on the sale of assets of community value, for the community to raise money for an asset. We asked whether this is a realistic timeframe. Loud and clear, community businesses said they need more time.
12 months was seen as an improvement over the 6-month moratorium given in the Community Right to Bid, which the Right to Buy will replace, and some leaders understood the delicate balance between delaying commercial bidders and giving communities ample opportunities. But the consensus was that 18-24 months is far more realistic. Community businesses reflected on their own challenges securing community ownership.
It took us three years to raise enough money to buy our property – so [12 months is] probably not long enough.
Our community ownership fund foray (unsuccessful because of sudden end of programme) took two years to assemble the resources to realistically start the process.
The time needed to raise funds varies hugely, depending on the asset’s location, the business’ prior experience with asset transfer, their relationship with local authorities, whether they already had robust fundraising strategies and business plans for the asset, and whether they could leverage existing funding.
12 months would likely be sufficient for an established group, but not sufficient for a new group to establish. Would think 18 months would be a more appropriate timescale, particularly when dealing with councils.
No – especially in areas experiencing deprivation where donations from local organisations and businesses are less likely. We also need time for fundraising (4-6 months minimum). Many funders want match funding, so you need a strategy for raising investment.
Our Director of Policy and Insight, Nick Plumb, recently gave evidence at the Public Bill Committee for the English Devolution and Community Empowerment Bill. He highlighted that revenue and capital funding must sit beside the Community Right to Buy to enable communities, particularly early-stage or deprived communities, the opportunity to access funds they may not raise themselves in the 12 months.
Neighbourhood governance, but perhaps not ‘effective’
The Bill also introduces a mandate for all local authorities to establish ‘effective neighbourhood governance’. While specific structures alongside town and parish councils need scoping, the Government’s main goal is to ‘move decision-making closer to residents […] who understand local needs’.
We explored how community businesses have felt so far working with local and parish councils to improve their neighbourhoods. Their experiences are decidedly mixed. Some sung the praises of their councils, highlighting regular and positive engagement. But for others, cooperation varied depending on councils’ interest, capacity, or budget:
“We have parish councils who are not particularly responsive to working with our sector. The Metropolitan Council is a little better, but tend to aim to control and generally only work with those who are delivering VCFSE contracts”.
“In 2012, the council were both encouraging and helpful. All that has gone, mainly since they became acutely short of money in 2019, and now they dismiss our efforts saying “all you’re doing is running a pub”.
“Good co-operation at the local town/parish level but quite abysmal at the local authority level”.
Many community businesses are clearly facing challenges in traditional governance structures. If we want ‘neighbourhood governance’ to be effective – to truly move decision-making closer to residents – community organisations need to be involved.
We’re currently testing community covenants as a model of neighbourhood governance. Through our partnership with Market Drayton, we’re showing how power-sharing agreements between councils and local communities could provide an alternative to the traditional structures that so often lead to decisions being made top-down.
Instead, the principles of community covenants enable sustainable, trusting relationships to be built, and support decision-making where the energy for change already exists. This is with the community organisations that are already embedded in their communities – and are the ones who understand local needs.
Our second Pulse Survey was carried out between 8th August – 7th September and had 38 respondents. The online survey was sent to our mailing list of community businesses who had either applied for our grants or previously worked with us. The results of this survey are not representative of the views of the entire community business sector.
