Social enterprises warn community right to buy threatened by lack of detail in Localism Bill

After reading an interesting article on the gaping holes in the Localism Bill that may trip up the positive elements in the bill, around community ownership of public assets and community-run public services, thought it might be useful to share the view of the social enterprise sector on what would need to be included.

Three new community rights would need to be included in the bill if it were to make a real difference.

First, for communities to have the right of first refusal for community land and buildings placed on the new ‘list of assets of community value’ that each local authority will be required to develop.

This makes it quite important to respond to calls from the council to nominate local places as of community value

This means that if a building like a local pub comes up for sale by the owner, and if it has been included on the council’s list, than the council should first go to the community to see if there is appetite for
a community buy out.

Second, a minimum six-month window for communities to prepare a bid for the asset.

The bill does mention that there will be a ‘moratorium’ period attached to the sale of listed assets and Social Enterprise understands that six months is the period being considered by government. However, while still in opposition, the Tories had talked about a window as small
as one month for communities to try to buy pubs before they are put on
the open market.

The consultation could also throw up the possibility of local authorities choosing their own moratorium period instead of it being set by central government.

With councils keen to raise funds they might not be happy to wait six months for a community bid if they can get away with one month

The third right for communities to access ‘appropriate support and finance’

This seems a vital part of the process

Source: Social Enterprise live