Legalize / United Kingdom / Scotland / Act of the Scottish Parliament

Community Wealth Building (Scotland) Act 2026

Type Act of the Scottish Parliament

Publication 2026-03-25

State In force

Jurisdiction Scotland

Department King's Printer for Scotland

Source legislation.gov.uk

Reform history JSON API

Community wealth building statement

1

(1) The Scottish Ministers must prepare a community wealth building statement.

(2) The community wealth building statement must set out the measures that the Scottish Ministers are taking or intend to take to—

(a) reduce economic and wealth inequality between individuals and communities in and across Scotland, and

(b) support sustainable and inclusive economic growth in line with the United Nations sustainable development goals,

by facilitating and supporting the generation, circulation and retention of wealth in local and regional economies.

(3) The measures must include—

(a) using public procurement to facilitate or support such generation, circulation and retention,

(b) promoting—

(i) employment opportunity,

(ii) workforce development,

(iii) equality in the workplace,

(d) bringing vacant and derelict land back into use in a way that provides financial, social or environmental benefit to the community,

(e) encouraging local business start-ups or entrepreneurship,

(f) promoting or supporting the development of—

(i) employee-owned businesses,

(ii) co-operatives, including co-operative financial institutions,

(iii) social enterprises,

(iv) supported businesses, as defined by section 11(3) of the Procurement Reform (Scotland) Act 2014,

(g) promoting access to investment opportunities that provide a benefit to the community and to local businesses,

(h) supporting local climate resilience and mitigation of the effects of climate change,

(i) such other measures as the Scottish Ministers consider appropriate.

(4) The community wealth building statement must set out the steps the Scottish Ministers will take to encourage and support—

(a) the Scottish National Investment Bank p.l.c.,

(b) Scottish Enterprise,

(d) Highlands and Islands Enterprise,

to increase the number, and promote the development, of employee-owned businesses.

(5) In preparing the community wealth building statement, the Scottish Ministers must—

(a) review the extent to which the goals of the statement, as set out in subsection (2), are facilitated by existing policies and practices within the public sector, whether set out in an enactment or otherwise, in relation to—

(i) procurement,

(ii) community empowerment,

(b) consider whether the measures in the community wealth building statement should include the implementation of changes to the policies and practices mentioned in paragraph (a), whether to enactments or otherwise, arising as a result of that review,

(d) publish a draft statement,

(e) consult with—

(i) local authorities,

(ii) such persons as they consider representative of the interests of—

(A) the community,

(B) businesses,

(iii) such other persons as they consider appropriate.

(6) The Scottish Ministers may by regulations modify the list of measures in subsection (3) so as to—

(a) add a measure,

(b) remove a measure listed in it,

(7) Regulations under subsection (6) are subject to the affirmative procedure.

Publication and laying of statement

2

(1) The Scottish Ministers must—

(a) publish the community wealth building statement in such manner as they consider appropriate, and

(b) lay a copy of the statement before the Scottish Parliament.

(2) The Scottish Ministers may by regulations specify further details about the format of the statement to be published under subsection (1)(a).

(3) Regulations under subsection (2) are subject to the affirmative procedure.

(4) Subsection (1) must be complied with within the period of 18 months beginning with the day on which this section comes into force.

(5) As soon as reasonably practicable after complying with subsection (1), the Scottish Ministers must—

(a) prepare and publish, in such manner as they consider appropriate, a report setting out—

(i) the consultation process undertaken in order to comply with section 1 (5)(e), and

(ii) the ways in which, in preparing the community wealth building statement, they have taken account of views expressed in the course of that process, and

(b) lay a copy of the report before the Scottish Parliament.

Review and revision of statement

3

(1) The Scottish Ministers—

(a) must keep the community wealth building statement under review, and

(b) may revise it as they consider appropriate.

(2) If the Scottish Ministers have not revised the community wealth building statement within the period of 5 years beginning with the day on which the community wealth building statement was last published, they must revise the statement.

(3) Section 1 (2), (3) and (5) and section 2 (1) and (5) apply in relation to revising the community wealth building statement as they apply in relation to preparing the first community wealth building statement.

Reporting on statement

4

(1) The Scottish Ministers must, as soon as reasonably practicable after the end of each reporting period—

(a) prepare a report setting out—

(i) the steps they have taken in the reporting period in respect of each measure included in the community wealth building statement,

(ii) the impact of the community wealth building statement and the measures set out in the statement in delivering the aims specified in section 1(2),

(iii) the steps they have taken in the reporting period to keep the community wealth building statement under review,

(b) publish the report in such manner as they consider appropriate, and

(2) The Scottish Ministers may by regulations specify further details about the format of the report to be published under subsection (1)(b).

(3) Regulations under subsection (2) are subject to the affirmative procedure.

(4) In this section, “reporting period” means—

(a) the period of 5 years beginning with the day on which the community wealth building statement was first published,

(b) each subsequent period of 5 years.

Community wealth building action plan

5

(1) Each local authority, working jointly with the relevant public bodies relating to it, must prepare a community wealth building action plan for the area of the local authority in question within the period of 3 years beginning with the day on which this section comes into force.

(2) Each local authority must publish the community wealth building action plan prepared in accordance with subsection (1) as soon as reasonably practicable following its preparation.

(3) The Scottish Ministers may by regulations specify further details about the format of the plan to be published under subsection (2) or the revised plan to be published under section 7(3).

(4) Regulations under subsection (3) are subject to the affirmative procedure.

(5) In relation to the functions conferred on them by this Act—

(a) a local authority and the relevant public bodies relating to it are collectively referred to in this Act as a “community wealth building partnership”,

(b) a local authority and each relevant public body relating to it are individually referred to in this Act as a “community wealth building partner”.

(6) A community wealth building action plan must set out the measures the community wealth building partnership is taking, or intends to take, to facilitate and support the generation, circulation and retention of wealth in the local economy.

(7) The measures referred to in subsection (6) may include—

(a) using public procurement and commissioning to facilitate or support such generation, circulation and retention,

(b) supporting local economic operators to access public sector contracts,

(i) employment opportunity,

(ii) workforce development,

(iii) equality in the workplace,

(d) diversifying ownership of land, energy or other assets by facilitating or supporting community ownership,

(e) utilising common good property to provide financial, social or environmental benefit to the community, including the transfer of ownership to community organisations,

(f) bringing vacant and derelict land back into use in a way that provides financial, social or environmental benefit to the community,

(g) encouraging local business start-ups or entrepreneurship,

(h) promoting or supporting the development of—

(i) employee-owned businesses,

(ii) co-operatives, including co-operative financial institutions,

(iii) social enterprises,

(iv) supported businesses, as defined by section 11(3) of the Procurement Reform (Scotland) Act 2014,

(i) promoting access to investment opportunities that provide a benefit to the community and to local businesses,

(j) measures to support local climate resilience and mitigation of the effects of climate change,

(k) such other measures as the community wealth building partnership considers appropriate.

(8) A community wealth building action plan must set an indicative target for the percentage of the total expenditure incurred pursuant to public contracts entered into by the community wealth building partners which is to go to local economic operators.

(9) A community wealth building action plan—

(a) must set out indicators by reference to which the community wealth building partnership intends to assess progress made in relation to the implementation of the measures set out in the action plan,

(b) may set targets in relation to the implementation of the measures set out in the action plan.

(10) The indicators mentioned in subsection (9)(a) may include—

(a) the performance of businesses, including—

(i) the number of new businesses established,

(ii) the total number of businesses,

(iii) the total business output,

(b) employment outcomes, including—

(i) average wage,

(ii) availability of skills development programmes,

(i) employee-owned,

(ii) co-operatives,

(d) the variety of land use, including—

(i) use of the community right to buy,

(ii) such other use of land as the community wealth building partnership considers relevant,

(e) the proportion of pension funds of the community wealth building partners invested locally and regionally,

(f) the growth of local financial institutions, including co-operative financial institutions,

(g) such other indicators as the community wealth building partnership considers appropriate.

(11) In preparing a community wealth building action plan, a community wealth building partnership must consider how the use or disposal of common good land and assets would further the aims of this Act.

(12) In contributing to the preparation of a community wealth building action plan, a local authority must consult—

(a) such persons as it considers likely to be directly affected by the community wealth building action plan,

(b) such persons as it considers representative of the interests of—

(i) the community,

(ii) businesses,

(iii) third sector bodies (as defined by section 37(1) of the Community Justice (Scotland) Act 2016),

(iv) social enterprises,

within the area of the local authority, and

(13) As soon as reasonably practicable after complying with subsection (2), the local authority must prepare and publish, in such manner as it considers appropriate, a report setting out—

(a) the consultation process undertaken in order to comply with subsection (12), and

(b) the ways in which, in contributing to the preparation of the community wealth building action plan, it has taken account of views expressed in the course of that process.

(14) In preparing a community wealth building action plan, a community wealth building partnership must have due regard to guidance issued under section 10 (1)(a).

(15) In this section and in section 8, “public contract” means a contract for pecuniary interest concluded in writing between one or more economic operators and one or more community wealth building partners and having as its object the execution of works, the supply of products or the provision of services.

(16) In this section and in sections 6 and 10, “relevant public bodies” in relation to a local authority are—

(a) the board of management of a regional college designated by order under section 7A of the Further and Higher Education (Scotland) Act 2005 which is situated wholly or partly in the area of the local authority,

(b) a regional strategic body specified in schedule 2A of the Further and Higher Education (Scotland) Act 2005 which is situated wholly or partly in the area of the local authority,

(c) a Health Board constituted under section 2 (1)(a) of the National Health Service (Scotland) Act 1978 whose area includes, or is the same as, the area of the local authority,

(d) Scottish Enterprise,

(e) South of Scotland Enterprise where all or part of the area of the local authority is within the South of Scotland as defined by section 21 of the South of Scotland Enterprise Act 2019,

(f) Highlands and Islands Enterprise where the area within which, or in relation to which, it exercises functions in accordance with section 21 (1) of the Enterprise and New Towns (Scotland) Act 1990 includes the whole or part of the area of the local authority,

(g) the Skills Development Scotland Co. Limited,

Reading this document does not replace reading the official text published on legislation.gov.uk. Contains public sector information licensed under the Open Government Licence v3.0. We assume no responsibility for any inaccuracies arising from the conversion of the original CLML XML to this format.