251105 ILE - CAT Annual Return and Update FINAL UPDATED 22.10.25
Renfrewshire Council · 5 November 2025
Back to Infrastructure, Land and Environment Policy Board — 5 November 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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2 PUBLIC ___________________________________________________________________ To: Infrastructure, Land and Environment Policy Board On: 05 November 2025 ___________________________________________________________________ Report by: Chief Executive ___________________________________________________________________ Heading: Asset Transfer Annual Return 2024/25 and Update ___________________________________________________________________ 1. Summary 1.1. The purpose of this report is to seek approval of the Community Asset Transfer Annual Return for the period 1st April 2024 to 31st March 2025. 1.2. This is a requirement under Section 95 of the Community Empowerment (Scotland) Act 2015 (the Act). 1.3. Within the reporting period, Renfrewshire Council received 8 full CAT requests of which 3 were approved in the period, 1 was refused, 2 were withdrawn and 2 were determined outwith the reporting period. 3 asset transfer requests were concluded within the period. In addition, the Council received numerous enquiries and 5 new Expressions of Interest. 1.4. The report also highlights findings from the review of the Community Empowerment Act and its implications for Renfrewshire Council. 1.5. Details of all the asset transfer requests are contained within the report and a copy of the draft return to Scottish Government attached as Appendix 1. ___________________________________________________________________ 2. Recommendations It is recommended that the Infrastructure, Land and Environment Policy Board: 2.1 Note the content of the report; and 2.2 Approve the annual return.
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3 PUBLIC ___________________________________________________________________ 3. Background 3.1. Part 5 of the Community Empowerment (Scotland) Act 2015 (“the Act”), which became effective from the 23rd of January 2017, allows for eligible community controlled organisations, known as Community Transfer Bodies (CTBs), to apply to own, lease or manage any property or land owned or leased by Renfrewshire Council. 3.2. Section 95 of the Act requires relevant authorities to produce and publish an asset transfer report in each reporting period, 1st April to 31st March inclusive. 3.3. The report should include the number of asset transfers received; the number agreed to and refused; the number that have resulted in the transfer, lease or rights being conferred; the number of appeals/reviews and of those the number allowed or dismissed. 3.4. The report also requests information on any action taken by the relevant authority during the reporting year to promote the use of asset transfer requests and to support community transfer bodies in the making of an asset transfer request. 3.5. Renfrewshire Council operates with a pre-application stage. Only full and complete asset transfer requests that have been validated are included in the report as applications received in the reporting period. 3.6. Asset transfer requests typically span more than one reporting period so they may be reported in one year, determined in another and concluded in a third. 3.7. Promotion of asset transfer and support to community transfer bodies is carried out by the Council Single Point of Contact for CAT. ___________________________________________________________________ 4. Annual Report 2024/25 4.1. Within the reporting period, Renfrewshire Council received 8 full CAT requests of which 3 were approved in the period, 1 was refused, 2 were withdrawn and 2 were determined outwith the reporting period. 3 asset transfer requests were concluded within the period. In addition, the Council received numerous enquiries and 4 new Expressions of Interest. 4.2. Asset transfer requests received and validated in the period: • Public realm space in front of Erskine Sports Centre, Kilpatrick Drive, Erskine PA8 5AF – application for 20 year lease by Erskine Arts Ltd • Football Pitch and Playing Fields, Lochwinnoch Public Park, Lochlip Road, Lochwinnoch PA12 4AE - application for ownership by Calderglen Community SCIO. Note this application was subsequently withdrawn
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4 PUBLIC • Land, northern boundary of 49 Beardmore Cottages Inchinnan, PA4 9PE – application for ownership by Inchinnan Development Trust Ltd • Cricket Pitch, King George V Playing Fields, Haining Road, Renfrew PA4 0AN – application for 30 lease by Renfrew Cricket Club SCIO • Sports Pavilion, Houston Road Park, Bridge of Weir, PA11 8QQ – application for ownership by Bridge of Weir Men’s Shed (unincorporated). Note this application was subsequently withdrawn prior to being submitted for determination • Development Site, East Beardmore Cottages, Inchinnan PA4 9PE – application for ownership buy Inchinnan Development Trust Ltd • Former Falcon Day Care Centre, Falcon Crescent, Paisley PA3 1NS – application for ownership by Pachedu Multicultural Hub Ltd • Beechwood Community Centre, Shortroods Road, Paisley PA3 2QY - application for ownership by Your Community, Your Space SCIO 4.3. Asset transfer requests determined in the period: • Public realm space in front of Erskine Sports Centre- APPROVED • Football Pitch and Playing Fields, Lochwinnoch Public Park - WITHDRAWN • Land, northern boundary of 49 Beardmore Cottages - APPROVED • Cricket Pitch, King George V Playing Fields - REFUSED • Former Falcon Day Care Centre - APPROVED 4.4. Asset transfer requests concluded in the period: • Whitehaugh Barracks (Western Desert Recce Group) – TRANSFER OF OWNERSHIP • Development site, Lochhead Avenue, Lochwinnoch (Lochwinnoch Community Development Trust) – 10-YEAR LEASE • Site, Bridge Street/Kashmir Road, Linwood (Linwood War Memorial Association) – 99-YEAR LEASE 4.5. There remain 5 asset transfer requests approved in previous years not yet concluded. These are: • Kirklandneuk Playing Fields (approved March 2019) • Woodlands Bowling Club (approved August 2022) • Linwood Community Gardens (approved August 2023) • Land, Manse Crescent, Houston (approved January 2024)
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5 PUBLIC • Erskine Community Allotments (approved January 2024) 4.6. The following assets are subject to ongoing applications, expressions of interest or enquiries and will be brought forward for determination in due course: • Former St Ninian’s Church Hall, Ferguslie – ONGOING • Witches Well, Queen Street, Paisley – ONGOING • Former Longcroft Children’s Home, Renfrew – ONGOING • Development Site Argyll Street/Lady Lane, Paisley - ONGOING • West Tandlemuir Farm (Muirshiel Regional Park) – ONGOING • Hunterhill Community Centre – ONGOING • Former Spateston Nursery site – ONGOING • Former St Paul’s Primary School site, Paisley - ONGOING • Former Craiglea Children’s Home – EXPRESSION OF INTEREST • Development Site, Priory Avenue, Paisley - EXPRESSION OF INTEREST • Ralston Community Sports Hub and Playing Fields - EXPRESSION OF INTEREST • Ralston Community Centre & Library - EXPRESSION OF INTEREST • Sports Pavilion, Glenpatrick Playing Fields - EXPRESSION OF INTEREST • Inchinnan Playing Fields - EXPRESSION OF INTEREST • The Annexe, Lochwinnoch Public Park - EXPRESSION OF INTEREST • Newshot Island Nature Reserve, Erskine – ENQUIRY • 28 Park Mains, Erskine - ENQUIRY 4.7. The draft Annual Report to Scottish Government is attached as Appendix 1. This will be submitted subject to approval of the Board and published on the Council website in accordance with the legislation. ___________________________________________________________________ 5. CEA Review 5.1. The Community Empowerment (Scotland) Act 2015 (the Act) came into force on 24 July 2015 providing a legal framework to promote and encourage community empowerment and participation by creating new rights for community bodies and placing new duties on public authorities.
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6 PUBLIC 5.2. In the Programme for Government 2021/22, the Scottish Government committed to reviewing the Act with a focus on community ownership and participation, reconfirmed in 2023/24 with a focus on Community Planning. 5.3. The review was launched on 21 July 2022 and work undertaken between August 2022 and October 2024. 5.4. Although the review looked at all parts of the Act, two parts including Part 5 Asset Transfer were extensively reviewed and findings reports published in March 2025. 5.5. The review sought to address three key questions: • Is Part 5 of the Community Empowerment (Scotland) Act 2015 being implemented as intended by Relevant Authorities? • Is asset transfer legislation empowering Community Transfer Bodies to make a positive difference in Scotland’s communities? • Are the appeals and reviews mechanisms working as intended? 5.6. The review found that in general Relevant Authorities (RAs) view asset transfer legislation positively and that the legislation has helped community organisations achieve benefits for their communities. However, whilst supportive of the legislation, RAs reported that at times a transfer using the legislation can be more onerous for both parties than a negotiated sale. This was attributed largely to best value considerations, which does not always mean highest price, and the need to consider social value. 5.7. The review also recognised that CTBs often underestimate the complex legal process involved, that this is particularly challenging for disadvantaged or smaller CTBs and concluded that more work needs to be done to address inequalities and support CTBs, particularly, at the expression of interest stage, the decision making processes, how to access funding and post-acquisition support including access to capital funding. 5.8. Other key findings include: • need for more proportionate approaches to transferring assets outwith the legislation particularly in relation to leases; • need for more robust information available on asset registers published by Relevant Authorities; • lack of support for key elements of the process including valuation, technical design survey and legal costs; • asset transfer appeals and reviews are working well and despite their complexity and uniqueness, the majority have been upheld. 5.9. In addition to the key findings, the review found that the Scottish Public Finance Manual makes no specific reference to asset transfer legislation and that this would benefit from updating for better alignment
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7 PUBLIC 5.10. Furthermore, the review highlighted significant variance in the recording methods used by Relevant Authorities and that decisions on asset transfers frequently span multiple reporting periods. Annual reporting requirements to be reviewed to capture more information on community groups and assets transferred. 5.11. A number of legislative changes have also been proposed, including • Reducing the minimum number of members for CTBs to apply for ownership from 20 to 10 in line with Community Right to Buy; • setting a minimum working day response target for Relevant Authorities to respond to a formal asset transfer request; and • changes to the procedural timescales permitted for the appeals and review processes. 5.12. In response to the findings of the review, the Scottish Government have pledged to: • Refresh the remit and membership of the National Asset Transfer Action Group to consider the key findings of this report. • Work collaboratively with Relevant Authorities, Community Transfer Bodies, the refreshed National Asset Transfer Action Group and key stakeholders including COSS, to explore options to strengthen the operation of asset transfers including considering proposals to update the statutory guidance. • Work with Relevant Authorities, COSLA, the refreshed National Asset Transfer Action Group and key stakeholders including COSS to explore options for gathering accurate and robust asset transfer data - including information on assets transferred into community ownership (asset type and area). • Consider the value of independently evaluating the impact of community asset transfer ownership or lease on local communities and how this is contributing to community empowerment and public service reform. 5.13. A copy of the Part 5 Findings Report is attached for information. ___________________________________________________________________ 6. Considerations of the Review for Renfrewshire Council 6.1. The review highlights a number of considerations for Renfrewshire Council. These include: • Valuations – while there is no statutory requirement for valuations to be provided as part of the asset transfer process, guidance for relevant authorities suggests that parties share the cost of a joint valuation equally either through the District Valuer or suitably qualified independent valuer. In the review CTBs identified the lack of information and support on the valuation of assets to be a barrier to progression.
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8 PUBLIC • Discounts - The Act allows for the transfer of assets to CTBs at less than market value with discounts being proportionate to the ‘social value’ that an asset transfer would create. The use of social value calculators is suggested as a means for determining discount, however, such calculators can be difficult to use especially for CTBs. The review highlighted a lack of transparency and consistency in how discounts are calculated with relevant authorities often applying other conditions to transactions that can be overly onerous for CTBs. • Asset Register - Section 94 of the Act requires each relevant authority, to the best of its knowledge and belief, to establish, maintain and make available a register of land which it owns or leases. Guidance to relevant authorities suggests this is updated every 3-months. The review found that information on relevant authorities’ asset registers varied from being an Excell spreadsheet with limited search function to interactive maps and called for more robust information to be available as required by the asset transfer legislation. • Alternatives to CAT - The review highlights the need for more proportionate approaches to transferring assets outwith the legislation particularly in relation to leases and for smaller organisations or assets. 6.2. In response to the review findings, it is proposed that Renfrewshire Council considers its own policy and procedures for asset transfer and brings forward a report to a future Board on how these can be improved. ___________________________________________________________________ Implications of the Report 1. Financial – None. 2. HR & Organisational Development – None. 3. Community Planning Our Renfrewshire is thriving – Three assets have transferred to community control with a further 4 applications approved in the period April 2024 to March 2025. 4. Legal – None. 5. Property/Assets – None. 6. Information Technology – None. 7. Equality & Human Rights- The Recommendations contained within this report have been assessed in relation to their impact on equalities and human rights. No negative impacts on equality groups or potential for infringement of individuals’ human rights have been identified.
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9 PUBLIC 8. Health & Safety – None. 9. Procurement – Not applicable. 10. Risk – None. 11. Privacy Impact – Not applicable. 12. Climate Risk – Not applicable 13. Children’s Rights – Not applicable 14. Cosla Policy Position – – Not applicable ___________________________________________________________________ List of Background Papers (a) None. _________________________________________________________________ Author: Sandra Inrig – 0141 487 1447 or 07974 071238. sandra.inrig@renfrewshire.gov.uk
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Version 5: 2023/24 Asset Transfer Requests Template 2023/24 Community Empowerment Team Scottish Government PUBLIC Asset Transfer Request Reporting Template 2024/25 for Relevant Authorities Section 95 of the Community Empowerment (Scotland) Act 2015 requires relevant authorities to produce an annual report on Asset Transfer Request activity and publish this no later than 30 June each year. Following stakeholder feedback and in response to asset transfer evaluations, this template has been created to help gather asset transfer data for the period 1 April 2023 to 31 March 2024. Information provided will help inform policy and practice at local and national level as the data will be collated and shared by the Scottish Government’s Community Empowerment Team. However, it will be for each relevant authority to make their own annual report publicly available by 30 June 2025, whether using this template or not. Please provide information in sections below and email completed template by 30 June 2025 to community.empowerment@gov.scot Section One – Relevant Authority Information Organisation: Address: Renfrewshire Council Renfrewshire House, Cotton Street, Paisley PA1 1WB Completed by: Role: Sandra Inrig Programme Manager – Community Asset Transfer & Regeneration Email: Telephone: sandra.inrig@renfrewshire.gov.uk 0141 487 1447 / 07974 071238 Date of completion: 15 September 2025 Are you the Asset Transfer Lead Contact for the organisation: YES If not please provide the name, job title and email address for the lead contact for any queries: Appendix 1
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Version 5: 2023/24 Asset Transfer Requests Template 2023/24 Community Empowerment Team Scottish Government PUBLIC Section 2: Asset Transfer Data in 2024/25 2.1 Please complete the following table for the 2024/25 reporting period : Total Applications Received1 Number of successful applications determined2 Number of unsuccessful applications determined Number received and yet to be determined3 Number received prior to 2024/25 and yet to be determined4 8 3 1 2 0 2.2 Please provide details of Asset Transfer Requests received which resulted in transfer of ownership, lease, or rights from your relevant authority to a community transfer body in 2024/25: Name of Community Transfer Body Name and Description of Asset Nature of Transfer Date of Transfer Western Desert Recce Group (WDRG) Whitehaugh Barracks. Former drill hall and garages; Category C Listed Full ownership 12/06/2024 Lochwinnoch Community Development Trust Development Site, Lochhead Avenue, Lochwinnoch PA12 4AW Lease – 10 years Option to purchase after 3 years 25/10/2024 Linwood War Memorial Association Site, Bridge Street / Kashmir Road, Linwood, PA3 3DE Lease – 99 years 19/12/2024 Friends of Howwood Park Ltd were successful in increasing their CAT lease on the Howwood Pavilion. Howwood Park from 10 years to 20 years. Asset transfer reported in 2020/21 and concluded in 2023/24
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Version 5: 2023/24 Asset Transfer Requests Template 2023/24 Community Empowerment Team Scottish Government PUBLIC 2.3 Please provide details of Asset Transfer Requests that went to a relevant authority appeal or review which were concluded in 2024/25: Name of Community Transfer Body Was the Asset Transfer Appeal/Review accepted? (Y/N) Why was the Appeal/Review accepted/refused? Please provide details of the asset transfer request and reasons for your decision. Renfrew Cricket Club SCIO No CAT request for the cricket grounds as part of the KGV Playing Fields in Renfrew was refused on the grounds ‘That there are obligations imposed on the authority that prevent, restrict or otherwise affect its ability to agree to the request (Section 82(3)(i) of the Community Empowerment (Scotland) Act 2015); being, the obligation to ensure adequate education provision in the area’. There was concern that the land on which Renfrew Cricket Ground is located may be required by the Council in the future should the Renfrew school estate be required to be extended or replaced and that there is not considered to be alternative land available within the immediate locale Following an internal review, the CAT Review Appeals Panel upheld the original decision because the reasons for refusal remained valid and had not been adequately addressed throughout the review process.
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Version 5: 2023/24 Asset Transfer Requests Template 2023/24 Community Empowerment Team Scottish Government PUBLIC 2.4 Please use this space to provide any further comments relating to the above data. Additional information in relation to data at 2.1 above: 1. The figure reported above relates only to the number of full applications validated in the period of the report. The Community Transfer Bodies and assets counted are: • Erskine Arts Ltd – Public Realm, Erskine Sports Centre, Kilpatrick Drive, Erskine PA8 5AF – 20-year LEASE • Calderglen Community SCIO – Football Pitch and Playing Fields, Lochwinnoch Public Park, Lochlip Road, Lochwinnoch PA12 4AE – TRANSFER OWNERSHIP. Application withdrawn. • Inchinnan Development Trust Ltd – Land, northern boundary 49 Beardmore Cottages Inchinnan, PA4 9PE - TRANSFER OWNERSHIP • Renfrew Cricket Club SCIO – Cricket Pitch, King George V Playing Fields, Haining Road, Renfrew PA4 0AN – 30-year LEASE • Bridge of Weir Men’s Shed (unincorporated) – Sports Pavilion, Houston Road Park, Bridge of Weir, PA11 8QQ - TRANSFER OWNERSHIP. Application withdrawn. • Inchinnan Development Trust Ltd – Development Site, East Beardmore Cottages, Inchinnan PA4 9PE - TRANSFER OWNERSHIP • Pachedu Multicultural Hub Ltd – Former Falcon Day Care Centre, Falcon Crescent, Paisley PA3 1NS - TRANSFER OWNERSHIP • Your Community, Your Space SCIO – Beechwood Community Centre, Shortroods Road, Paisley PA3 2QY - TRANSFER OWNERSHIP 2. The figure reported above relates to the total number of applications approved in the period and includes those validated in 2024/25 and in previous years. The Community Transfer Bodies and assets counted are: • Erskine Arts Ltd – Public Realm, Erskine Sports Centre, Kilpatrick Drive, Erskine PA8 5AF – 20-year LEASE • Inchinnan Development Trust Ltd – Land, northern boundary 49 Beardmore Cottages Inchinnan, PA4 9PE - TRANSFER OWNERSHIP • Pachedu Multicultural Hub Ltd – Former Falcon Day Care Centre, Falcon Crescent, Paisley PA3 1NS - TRANSFER OWNERSHIP 3. The figure reported above relates to full applications received (Validated) in 2024/25 but not determined. The Community Transfer Bodies and assets counted are: • Inchinnan Development Trust Ltd – Development Site, East Beardmore Cottages, Inchinnan PA4 9PE - TRANSFER OWNERSHIP • Your Community, Your Space SCIO – Beechwood Community Centre, Shortroods Road, Paisley PA3 2QY - TRANSFER OWNERSHIP
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Version 5: 2023/24 Asset Transfer Requests Template 2023/24 Community Empowerment Team Scottish Government PUBLIC Further Comments/Information: 1. There remain 5 applications that were approved prior to 2024/25 but are not yet completed. These are • Kirklandneuk Playing Fields (approved March 2019) • Woodlands Bowling Club (approved August 2022) • Linwood Community Gardens (approved August 2023) • Land, Manse Crescent, Houston (approved January 2024) • Erskine Community Allotments (approved January 2024) 2. In addition to the full and determined applications reported above, we have: • 4 ongoing applications – these applications have previously been reported but are not yet validated or determined o Former St Ninian’s Church Hall o Witches Well o Former Longcroft Children’s Home o Development Stie Argyll Street/Lady Lane, Paisley • 4 new Expressions of Interest currently working up full applications o West Tandlemuir Farm (Muirshiel Regional Park) o Hunterhill Community Centre o Former Craiglea Children’s Home (Sculpture House) o Development Site, Priory Avenue, Paisley
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Version 5: 2023/24 Asset Transfer Requests Template 2023/24 Community Empowerment Team Scottish Government PUBLIC Section Three – Promotion and Equality 3.1 Please provide information on any action you have taken to promote the benefits of asset transfer or any support provided for communities to engage with the Asset Transfer Request process. We continue to promote asset transfer through our Economic Development (Communities) and Connected Communities (Community Partnership and Community Learning & Development) teams as well as through our Third Sector Interface, Community Councils and our Leisure and Culture Partner (OneRen). The Programme Manager for Asset Transfer has delivered information sessions via our Third Sector Interface (Engage Renfrewshire) and in partnership with COSS and has attended several Community Councils to promote asset transfer. Our Sustainable Communities Fund provides support for communities to engage in the asset transfer process through funding for feasibility studies, option appraisals and business plans 3.2 In particular what action has been taken to support disadvantaged communities to engage with the asset transfer process? Support to develop applications to the Sustainable Communities Fund Section Four – Additional Information 4.1 Please use this space to provide any further feedback not covered in the above sections. Please email the completed template by 30 June 2025 to community.empowerment@gov.scot If you have any queries please contact Malcolm Cowie, Asset Transfer Policy Manager at Malcolm.cowie@gov.scot
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Findings Report Review of Asset Transfer - Part 5 of the Community Empowerment (Scotland) Act 2015
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Contents Executive Summary 04 Introduction 04 Methodology 04 Limitations 05 Summary of Key Findings 05 Conclusion 06 1.Introduction 08 1.1 Policy Context 08 1.2 Asset Transfer Support 09 2.Methodology 11 2.1 Review aim 11 2.2 Review Approach 11 2.3 Review Limitations 12 3.Asset Transfer Activity 13 3.1 Introduction 13 3.2 Data Activity 13 4.Findings 15 4.1 Is Part 5 of the Community Empowerment (Scotland) Act 2015 being implemented as intended by Relevant Authorities? 15 4.2 Is Asset Transfer legislation empowering Community Transfer Bodies to make a positive difference in Scotland’s communities? 21 4.3 Are the appeals and reviews mechanisms working as intended? 27 5.Conclusion and Next Steps 33 Annex A: List of Relevant Authorities 35 Annex B: References 38
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04 Executive Summary Introduction This report presents findings from a review of asset transfers as introduced by Part 5 of the Community Empowerment (Scotland) Act 2015. The aim of this review is to present and synthesise findings on the implementation of asset transfer legislation by Relevant Authorities, explore the impact it is having on communities and assess if the appeal and review mechanisms are working as intended. Findings will help to inform what practical or statutory updates might be required for asset transfers to further empower communities. Methodology This review was undertaken by the Scottish Government’s Public Service Reform Directorate. It draws on a range of sources including evidence available prior to the review launch, from Glasgow Caledonian University’s three year independent evaluation of asset transfer published in 2020, the Scottish Parliament’s Local Government and Communities Committee post legislative scrutiny report in 2021 and two Scottish Government online asset transfer national conferences in September and October 2021 that were designed to share learning and gather views. Following the review launch in July 2022, the Scottish Government gathered information from Relevant Authorities to help collate accurate data on asset transfer activity, gathered information on their experiences of implementing asset transfer legislation and invited views on any changes required to the process, by asking them to complete an additional section in the asset transfer annual reporting template in 2022 and 2023. At the Scottish Government’s request, information was also provided by the Community Ownership Support Service (COSS) which is an adviser based asset transfer information service delivered Scotland wide. COSS provided a report which outlined findings from a survey of Relevant Authorities and Community Transfer Bodies experience of the asset transfer process conducted in 2023. They also provided a report outlining their own insights based on their experience of asset transfer legislation since its introduction in 2017. Three community workshops hosted by the Scottish Government with COSS in 2023 provided further information on the implementation and impact of asset transfer legislation. During 2024, asset transfer appeal and review reports were also analysed by the Scottish Government to inform if the process was working. Finally, although separate to this review, a report from Glasgow Caledonian University published in September 2024 on UK-wide rural communities experiences of land acquisition was also considered. The review focuses on the following key questions: • Is Part 5 of the Community Empowerment (Scotland) Act 2015 being implemented as intended by Relevant Authorities? • Is asset transfer legislation empowering Community Transfer Bodies to make a positive difference in Scotland’s communities? • Are the appeals and reviews mechanisms working as intended?
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05 Limitations Not all Relevant Authorities returned their annual reporting template to the Scottish Government and asset transfer activity information was not available on every Relevant Authority website. In addition, in the course of conducting this review, it became apparent that there are varying recording methods used by Relevant Authorities, and furthermore, that decisions on asset transfers can span reporting years. Given these gaps and complications it has not been possible to provide detailed quantitative breakdowns on asset transfer applications. Therefore, the method of collating data needs to be reviewed to ensure the availability of robust data in the future. Summary of Key Findings • Relevant Authorities view asset transfer legislation positively and although the legislation can be considered a complex process to navigate, it has provided a useful legal framework and greater consistency nationally • Asset transfer has helped Community Transfer Bodies achieve benefits for their communities and has provided community groups with a more prominent, rights supported, route to the use of land and buildings for community benefit • The asset transfer process can be challenging for some disadvantaged or smaller Community Transfer Bodies and more work is needed to address inequalities, supported by community development services • The review found that updates to the asset transfer statutory guidance are required including case studies and questions and answers, and it was suggested that better alignment of the Scottish Public Finance Manual with the asset transfer statutory guidance would be beneficial • More robust information is required on Relevant Authorities registers of land as under the asset transfer legislation these should be maintained and made publicly available • It has been difficult to gather accurate asset transfer data due to variations in local recording practices and more is required to collate robust data to better inform the impact of asset transfer legislation • The value of peer support at a local level and a targeted model of support for smaller and newer organisations can yield positive results and this approach could be upscaled to other areas of Scotland • Asset transfer appeals and reviews are working well and despite their complexity and uniqueness, the majority have been upheld • Significant learning has been gained from the appeal and review reports, not previously available, which include suggestions for procedural improvements • A UK-wide report found that Scotland is viewed as the most advanced nation in the UK for community asset acquisition due to the legislation in place and proposed opportunities should be identified to share learning with the other UK nations around what works.
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06 Conclusion Prior to Part 5 of the Community Empowerment (Scotland) Act 2015 coming into force in 2017, many Local Authorities and some public bodies had operated successful asset transfer schemes, mainly in relation to property they had identified as surplus for disposal. The Scottish Government introduced Part 5 asset transfer to build on this voluntary approach. The legislation introduced a right for community bodies to make requests to a wide-ranging list of public authorities for any land or buildings, surplus or not, with the proviso that the request would be agreed unless there were reasonable grounds for refusal. This legislation, the first of its kind in the UK, shifted the balance of power towards the community body and ensured that asset transfer was available throughout Scotland. This community-led action to own, lease or manage public land and buildings is a powerful tool for communities to drive change locally and achieve their own goals for the benefit of the community. This review also noted findings from a recent UK-wide report which found that Scotland was viewed as the most advanced nation in the UK for community asset acquisition due to the legislation in place. It has not been possible to provide detailed quantitative breakdowns on asset transfer activity in this report. Although the majority of public service providers display asset transfer information on their websites as required by law, the review found that there are varying recording methods being used and decisions on asset transfers can span reporting years. Given these gaps and complications, a key finding of this review is that more work needs to be done to collate robust asset transfer data to better understand its impact. Despite the challenges around collating asset transfer data, to provide some perspective on asset ownership, the latest Community Ownership in Scotland Report which was published in November 2024 provides information on private and public land, buildings and other assets owned by community groups in Scotland. Due to land reform and asset transfer legislation introduced by the Scottish Government, the number of groups who own assets has increased significantly over the last 20 years from 86 groups in 2000 to 533 in 2023 and this equates to 208,597 hectares which is 2.7% of the total land mass of Scotland. Asset transfer ownership is included within these figures however numbers for asset transfer lease or management are not. Although considered a complex process to navigate by many who participated in this review, the asset transfer legislative framework is welcomed as it provides greater consistency of approach across Scotland’s public service providers. Additionally, it was reported that it has created greater awareness of the availability of public assets beyond Local Authorities, compared to before the legislation came into force. Another key advantage reported was that it has provided Community Transfer Bodies with a structured and time bound route to the use of public land and buildings, which includes appeals mechanisms to challenge decisions. This review highlighted the need for more transparency and robust information on the lists of assets published by Relevant Authorities, known as asset registers. It also raised the need for clarification on a number of the technical requirements contained within the legislation that is required by Relevant Authorities and updates to the asset transfer statutory guidance were proposed to support this. This review also found closer alignment with other national policies such as the Scottish Public Finance Manual and the Scottish Land Fund would be beneficial.
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07 The Community Ownership Support Service, who provide an adviser led service for individuals engaging with asset transfer legislation, made a number of suggestions for legislative changes based on their experience working with asset transfer over many years and from information they had gathered from Community Transfer Bodies as part of this review. Examples include changes to the Community Transfer Body membership numbers requirement for asset ownership; setting a minimum working day response target for Relevant Authorities to respond to a formal asset transfer request; and changes to the procedural timescales permitted for the appeals and review processes. However, any changes to legislation would have to be assessed further, including cost implications and impact on Relevant Authorities and Community Transfer Bodies. The National Asset Transfer Action Group could assist with any assessment undertaken. This review also found that more work needs to be done to support disadvantaged or smaller Community Transfer Bodies. Targeted support from community development services was highlighted as important in this space as well as peer support at a local level. For example, a pilot project undertaken in Barmulloch, Glasgow during 2021 and 2022 enabled a local anchor organisation to provide targeted peer support for 11 small and emerging community groups to engage with the asset transfer process. This highlighted positive results that saw the groups progress their asset transfers and the model could be replicated in other areas in Scotland. In response to the findings of this review, the Scottish Government will: • Refresh the remit and membership of the National Asset Transfer Action Group to consider the key findings of this report • Work collaboratively with Relevant Authorities, Community Transfer Bodies, the refreshed National Asset Transfer Action Group and key stakeholders including COSS, to explore options to strengthen the operation of asset transfers including considering proposals to update the statutory guidance • Work with Relevant Authorities, COSLA, the refreshed National Asset Transfer Action Group and key stakeholders including COSS to explore options for gathering accurate and robust asset transfer data – including information on assets transferred into community ownership (asset type and area) • Consider the value of independently evaluating the impact of community asset transfer ownership and lease on local communities and how this is contributing to community empowerment and public service reform
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08 1. Introduction The Community Empowerment (Scotland) Act 2015 (the Act) came into force on 24 July 2015 providing a legal framework to promote and encourage community empowerment and participation by creating new rights for community bodies and placing new duties on public authorities. The Act has 12 parts, 11 of which include a mix of legislative drivers at various stages of implementation and delivery. Part 12 makes general provisions in relation to the Act and guidance developed for each Part of the Act has been published in accordance with Part 12. On 7 September 2021, the Scottish Government committed to reviewing the Act in the Fairer, Greener Scotland Programme for Government 2021-2022 which stated: “We will review the Community Empowerment Act, to consider how local communities can have more of a say over how local public assets are used – whether that is taking on the ownership or management of land or buildings, delivery of services to members of their community, or more say in how services are delivered, assets are used and resources are allocated.” The review was launched by the then Minister for Public Finance, Planning and Community Wealth on 21 July 2022 and work on the review was undertaken between August 2022 and October 2024. Two parts of the Act were extensively reviewed: Part 5 Asset Transfer (this report), and a separate Part 3 Participation Requests report. A Findings and Update Report for the Act is also available which provides a summary of parts 3 and 5, an assessment of Part 2 Community Planning, and an update on the other eight parts of the Act. This report provides findings from a review of the use and impact of asset transfer requests by public authorities and community organisations. Findings will help inform what practical or statutory updates might be required for asset transfers to further empower communities. 1.1 Policy Context Part 5, Asset Transfer Requests came into force on 23 January 2017 and provided a legislative route for community groups to buy, lease or manage public assets such as land or buildings. It was designed to encourage and support ownership and control of assets by communities in situations that recognised the public benefits that community use would bring. Whilst asset transfers was not a new process, the legislation placed new responsibilities on public authorities to respond to their requests in a transparent and timely way. Asset transfers can be made by community organisations to public authorities which are listed in Schedule 3 of the Act. As defined by the Act, the term used for community organisations is Community Transfer Bodies and they can represent a geographical community or a community of interest. The Community Transfer Body must have a
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09 constitution which provides that it is open to and controlled by members of that community, and uses its funds and assets for the benefit of that community. The term used in the Act for public authorities is Relevant Authorities and there are currently 95 of these subject to asset transfer legislation. The list of Relevant Authorities is included at Annex A. Under asset transfer legislation this list can change over time as public authorities can be added or removed. Part 5 of the Act has been evaluated since its introduction in 2017 and the Scottish Government commissioned a three year independent evaluation on asset transfers which was undertaken by Glasgow Caledonian University. Their Community Empowerment (Scotland) Act 2015: asset transfer requests - evaluation was published in July 2020 and found that asset transfers may help to address inequalities and support communities to deliver better and more appropriate services. It recommended to maximise the impacts of asset transfers, and to achieve longer-term changes in community empowerment envisaged by the Act, government and Relevant Authorities need to take further steps to promote and support asset transfers – focusing on less-advantaged communities in particular – and to continue to improve monitoring and tracking of the results. It recommended Scottish Government ensure Relevant Authorities meet their annual reporting duties, and guidance should be developed on best value for asset transfers. The Glasgow Caledonian University evaluation recommended that Relevant Authorities should promote asset transfers wider, and deal with requests transparently and have a responsible person identified for requests. Part 5 of the Act was also reviewed by the previous session of the Scottish Parliament’s Local Government and Communities Committee in 2021 as part of wider work that considered various parts of the Act. The Committee noted in their Community Empowerment: Taking Stock of Participation Requests and Asset Transfers Four Years On report that although the stakeholders they consulted had a generally positive view of asset transfers, the process was becoming more bureaucratic and that lease arrangements were being preferred by some authorities to ownership. They highlighted the need to clarify asset transfer best practice and for the Scottish Government to establish best value support for asset transfers. 1.2 Asset Transfer Support The Scottish Government published statutory asset transfer guidance for relevant authorities and statutory asset transfer guidance for community transfer bodies in 2017. These documents set out the asset transfer process and focus on the points each party has to take action, including guidance for Community Transfer Bodies on completing requests and for Relevant Authorities on receiving requests. Relevant Authorities are required under Section 96 of the Act to have regard to this guidance in carrying out their functions regarding asset transfer requests. The Scottish Government funds the Community Ownership Support Service (COSS) who provide a free to access adviser led service, and they help community groups navigate the asset transfer process. COSS also provide support to individuals regarding the asset transfer process and facilitate professional development sessions which have been well
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10 received by Relevant Authorities. COSS play an important role in driving up knowledge and capacity for asset transfers. COSS has produced an asset transfer route map to support the process which is widely used and has been adapted by some Relevant Authorities. COSS Business Planning Support and Funding Advice provides information on business planning and various funding streams that can be accessed. They also published Managing Risk in Community Asset Transfer in December 2020 which offers guidance to Relevant Authorities when considering social value. The Scottish Government produced social value guidance in September 2021 which provides examples of best practice, signposting to support channels, and links to tools and techniques to consider social value for asset transfers, including the use of Social Return on Investment tools. To support areas experiencing inequalities engage with asset transfer, the Scottish Government and COSS jointly funded a two year project in Barmulloch, Glasgow, that was delivered between 2021 and 2022 and trialled a peer support approach to asset transfers with a local organisation acting as an anchor organisation for Community Transfer Bodies to receive support throughout their engagement with the asset transfer process. The Scottish Government established a National Asset Transfer Action Group in October 2020 to consider learning from evaluations, asset transfer activity and the challenges and opportunities it presents and what actions need to be taken more broadly, and by whom, to ensure that asset transfer is achieving its goal to drive change and empower communities. The group is comprised of membership from Relevant Authorities, partner organisations, and community representation, and the work of the group is highlighted within this report.
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11 2. Methodology 2.1 Review aim The aim of this review is to synthesise and present findings on the use and impact of asset transfer legislation over the last seven years by Relevant Authorities and Community Transfer Bodies. Findings are drawn from a wide range of evidence this review has gathered, which is summarised in the following review approach paragraph. Findings from this review will help inform what practical or statutory updates might be required for asset transfers to further empower communities. To address these aims, this review has considered three questions: • Is Part 5 of the Community Empowerment (Scotland) Act 2015 being implemented as intended by Relevant Authorities? • Is asset transfer legislation empowering Community Transfer Bodies to make a positive difference in Scotland’s communities? • Are the appeals and reviews mechanisms working as intended? 2.2 Review Approach This review was undertaken by the Scottish Government’s Public Service Reform Directorate. It draws on a range of sources including an independent evaluation of the first three years of asset transfer activity by Glasgow Caledonian University, a Community Empowerment: Taking Stock of Participation Requests and Asset Transfers Four Years On report from the previous session of the Scottish Parliament and findings from two conferences on asset transfers that were organised by Scottish Government and held in 2021. Following the launch of the review in July 2022, evidence was gathered from COSS in 2023 who provided a report on the implementation of asset transfers and a further report from COSS that outlined findings from a COSS survey of individuals with experience of the asset transfer process they had conducted in 2023. The Scottish Government also hosted three community workshops in 2023 with COSS to gather views from Community Transfer Bodies, partners, and Relevant Authorities. A key part of the process was gathering feedback from all Relevant Authorities who were invited to provide views in the 2022 and 2023 annual reporting templates issued by Scottish Government. Reports from the 16 appeals and one review that were submitted to Scottish Ministers for decision were also analysed by the Scottish Government. A UK wide Rural Assets: Policy and practice insights from the devolved nations report from Glasgow Caledonian University published in 2024 on rural communities experiences of land acquisition has also been also considered.
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12 2.3 Review Limitations Not all Relevant Authorities returned their annual reporting templates to the Scottish Government, and asset transfer activity information was not available on every Relevant Authority website. In addition, in the course of conducting this review, it became apparent that there are varying recording methods used by Relevant Authorities, and, furthermore, that decisions on asset transfers can span reporting years. Given these gaps and complications, it has not been possible to provide detailed quantitative breakdowns on asset transfer applications. Therefore, the method of collating data needs to be reviewed, to ensure the availability of robust data in the future.
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13 3. Asset Transfer Activity 3.1 Introduction Part 5 legislation is a key part of the Scottish Government’s commitment to support communities gain more control of land and assets. The annual Community Ownership in Scotland report provides information on land, buildings and other assets owned by community groups in Scotland. The figures in the publication are based on ownership only, and do not include asset transfer lease or management figures. Ownership numbers can only be included in the publication once the transfer of ownership has been registered in the Community Transfer Body’s name. The latest Community Ownership in Scotland 2023 report published in November 2024 provides summary statistics for 2023 and found that 840 assets are owned by 533 groups. These cover an area of 208,597 hectares (approximately the size of Stirling council area (218,616 hectares) or Angus council area (218,145) hectares, which is 2.7% of the total land mass of Scotland. Almost three quarters (74%) of land in community ownership is within Western Isles (Na h-Eilean an Siar) council area. The Highland and Argyll and Bute Local Authorities together contain over one third (36%) of all assets in community ownership. Accurate asset transfer data is important to help inform community ownership information. Section 95 of the Act states that Relevant Authorities must publish an annual report by 30 June setting out numbers of asset transfers received, agreed, refused and those which resulted in transfer of ownership, lease, or rights in respect of land or buildings being transferred. The report must also include details of the number of appeals under Section 85 of the Act that have been allowed, dismissed, or resulted in any part of the decision of the authority being varied or reversed. 3.2 Data Activity The Scottish Government has undertaken a range of actions since the legislation was introduced in 2017 to support Relevant Authorities as they have developed their asset transfer data recording mechanisms. As well as the asset transfer statutory guidance which includes information on annual reporting, examples of data reporting good practice have been shared by the Scottish Government with Relevant Authorities. Although there is no statutory duty on Relevant Authorities to return annual reporting information to the Scottish Government, since 2019-2020 the Scottish Government has issued an annual reporting template to the 95 Relevant Authorities to support reporting compliance. The template is reviewed regularly and has had input from the National Asset Transfer Action Group. As not all of the Relevant Authorities return their annual reporting templates, the Scottish Government undertakes desktop research of the 95 individual Relevant Authority websites to gather as much information as possible to inform national asset transfer activity and sends follow up emails to request this information when unable to locate it. Although
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14 the majority of Relevant Authorities display information on their websites, in the course of conducting this review it became apparent that there are varying recording methods used, and furthermore, that decisions on asset transfers can span reporting years. Given these gaps and complications, it has not been possible to provide detailed quantitative breakdowns on asset transfer activity. In addition, there is no data currently gathered by Relevant Authorities on asset transfer requests made outwith the legislation, the number of asset transfer requests that go to Local Authority internal reviews, or the volume of assets that have been transferred under the legislation. Therefore, existing data gathered may not present an exact figure of activity levels across Scotland and a key finding of this review is the need to collate robust data to better inform the impact of asset transfer legislation.
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15 4. Findings 4.1 Is Part 5 of the Community Empowerment (Scotland) Act 2015 being implemented as intended by Relevant Authorities? 4.1.1 Introduction The 2021-2022 and 2022-2023 annual reporting templates included four questions that asked Relevant Authorities about their experiences of asset transfers. A total of 70 responses were received over the two years, 38 in 2021-2022 and 32 in 2022-2023. Nineteen of the Relevant Authorities reported in both years and the total number that reported at least once was 47. Of those 47, 20 were Local Authorities, seven NHS Boards, six education providers, five transport partnerships, and nine organisations that are individually named on Schedule 3 of the Act. 4.1.2 Overview of responses Based on all the information received, an overview of responses for each of the four questions is summarised below to help inform if asset transfer legislation is being implemented as intended by Relevant Authorities. a. Has the legislation made things easier or more difficult to work with communities on asset transfers? Please provide some comments on your experiences as a Relevant Authority engaging with this legislation. Local Authority responses to this question indicated that they view asset transfer legislation positively and consider it a tangible example of community empowerment in action. A few noted that they had experience of transferring assets to communities prior to the legislation being introduced but acknowledged that the legislative framework, supported by statutory guidance and specific timescales, has shifted the balance of power towards communities and provides a transparent and effective route to work with on asset ownership. They also highlighted that the legislation has helped to increase visibility and greater awareness within communities of the possibilities afforded by asset transfers. Another element mentioned by some Local Authorities was that asset transfers provide greater consistency of process across Local Authorities. The right for Community Transfer Bodies to request an internal review and Scottish Government appeal was also found to be an empowering aspect of the legislation by some Local Authorities. Some Local Authorities reported that the asset transfer process can be complex and can involve extensive staff time from a number of departments including legal, finance, planning and their communities teams. They stressed the importance of meaningful and transparent engagement with the Community Transfer Bodies prior to beginning the formal application process as one of the key components to achieving a successful outcome.
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16 The majority of Local Authorities who responded have put better processes and additional resources in place to respond to enquiries. They recognise that the legislation can be difficult to navigate for some Community Transfer Bodies who may not have the necessary skillsets or support, to allow them to achieve a successful outcome. It was suggested by a few Local Authorities that the availability of case studies as part of the asset transfer statutory guidance, along with examples of questions and answers, would be useful to help respond to some of these issues. It was also highlighted by a few Local Authorities that, whilst supportive of the legislation and the benefits it affords Community Transfer Bodies, at times a transfer using the legislation can be more onerous for both parties than a negotiated sale, largely due to best value considerations. All Relevant Authorities have a duty to secure best value in their operations; however, acknowledge that best value does not always mean the highest possible price. They also have to consider social value1 implications and this can be challenging to evidence when considering asset transfers as part of the overall decision making process. To provide greater clarity on social value for asset transfers, the Asset Transfer Social Value Guidance was published in 2021 by the Scottish Government with input from the National Asset Transfer Action Group. It was also highlighted by one Local Authority that the Scottish Public Finance Manual which provides guidance on the proper handling and reporting of public funds, makes no specific reference to asset transfer legislation. The manual does include a section which describes the duty of best value in public services and contains guidance for accountable officers. It was suggested that better alignment between the asset transfer statutory guidance and this section of the manual would be helpful. A few Local Authorities explained that, for smaller and marginalised groups, providing the required information in their asset transfer application can be onerous, especially around quantifying community benefits. They commented that some smaller Community Transfer Bodies underestimated the financial costs involved to progress their application, for example, feasibility studies, community engagement and business plan drafting. It was highlighted that access to discretionary grants could go a long way to relieve pressure on community organisations navigating through the asset transfer process. For example, the Scottish Government’s Scottish Land Fund supports communities to become more resilient and sustainable through the ownership and management of land and land assets including asset transfer. 1 Social Value UK, a professional body for social value and impact management, defines social impact as ‘changes in people’s lives caused by an activity’ and social value as ‘a way of quantifying the relative importance of these impacts that are not already captured in financial or market transactions’.
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17 Alongside the Local Authorities, responses from other Relevant Authorities provided helpful insights into their experience of asset transfers and similarly indicated that the legislation has been welcomed. Several of these responses commented that the legislation had helped regulate the asset transfer process, making it easier to work with communities, particularly where a Community Transfer Body might not have a clear understanding of the process or the requirements they have to fulfil. A number of Relevant Authorities reported that asset transfer legislation has raised awareness of the opportunity to take on public assets outwith Local Authorities, particularly for community organisations who might not normally be aware of these rights, contributing to community empowerment. However, a few commented that negotiations on asset transfer with the Community Transfer Body outwith the legislation can sometimes be easier to take forward. A few Relevant Authorities commented that the current statutory guidance, case studies and toolkits produced to support organisations, has increased awareness of the benefits and challenges of asset transfer legislation. b. Where can things be further improved, and what needs to change? Relevant Authorities who responded to this question provided extensive feedback on where things can be improved and what changes are needed to further improve the asset transfer process. A number of Relevant Authorities highlighted the need for Community Transfer Bodies to have better awareness of the timescales involved in the asset transfer process. They provided examples of the length of time that it can take when negotiating the final terms and conditions of transfer including any discounts, planning permission considerations, access to external funding and business planning. Another example provided was that more clarity on how Community Transfer Bodies are constituted to be eligible for asset transfer would be helpful and tailored support should be provided to community groups experiencing inequality, due to the administrative demands of the asset transfer process. A few Relevant Authorities also noted how more information from a Community Transfer Body to support their application including robust costings, could make it easier for the Relevant Authority to consider and respond to the request. They noted that the statutory guidance2 recommends ‘outline only’ in an application which is unhelpful and can cause delay. One Relevant Authority commented that asking for more detailed information may make them appear overly prescriptive, but that they are undertaking this approach to ensure the sustainability of the Community Transfer Body’s application. As well as the support provided by COSS, it was suggested by one Relevant Authority that independent legal support for Community Transfer Bodies with a good understanding of the asset transfer process would be beneficial for groups. 2 Statutory guidance paragraph 8.2 states: ‘While the statutory scheme requires a full request to be made to initiate the process, it may still be helpful to invite outline proposals as a “pre-application” stage’; asset transfer guidance for relevant authorities paragraph 8.2
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18 Several Relevant Authorities who submitted responses for this question were interested in seeking clarification on how to deal with multiple asset transfer requests and withdrawn requests, particularly around statutory timings and restrictions to selling the asset. They reported that this part of the process is ambiguous and explained that updates to the statutory guidance, with good practice examples, would help clarify this. One Local Authority raised the need for clearer guidance on the conditions of transferring the asset from a Relevant Authority to a Community Transfer Body following a successful asset transfer request under the legislation. These conditions are sometimes referred to as clawback and the Local Authority noted that at times this lack of clarity can negatively impact the benefits of the asset and clearer guidance was suggested to address this. This is to protect the value of the asset and ensure it (or the value) remains in community control. To ensure that Local Authorities meet best value obligations and protect public resources, the placing of burdens or other protections is recommended in the asset transfer statutory guidance. The same Local Authority highlighted that a number of external funding bodies can refuse to provide funding to groups that have an economic development burden3 greater than five years. This can sometimes place Local Authorities in a contradictory position and they felt required clarification at a national level. Finally, it was highlighted by one Relevant Authority that more capital grant funding was needed for community bodies to help upgrade newly acquired assets that need essential improvement work, as Community Transfer Bodies have highlighted particular challenges around limited availability of flexible financial sources to fund redevelopment of assets following transfer. c. Are you aware of what support is available to you when engaging with this legislation and how you can access this? Please provide comments where possible. All Relevant Authorities who responded to this question stated they are aware of the substantial support available when engaging with the legislation and how to access it, in particular support provided by COSS including resources on the COSS website. Two Local Authorities highlighted the value of a knowledge hub that has been established and open to all Local Authorities to facilitate shared learning. One Local Authority highlighted that an internal asset transfer working group with representation from different departments meet monthly to discuss asset transfers. Members of Scottish Government agencies including Forestry and Land Scotland, Scottish Water, NatureScot and Highland and Islands Enterprise have operated a similar support network for the last few years and this has enabled the sharing of learning including good recording practices. These examples of Relevant Authorities supporting each other to develop their asset transfer policies provides evidence of a more joined up approach being adopted throughout the country that is helping further embed the policy nationally and the development of best practice. 3 An economic development burden ‘may comprise an obligation to pay a sum of money to the Local Authority or the Scottish Ministers as the case may be’ (as defined in chapter 45 of the Title Conditions (Scotland) Act 2003).
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19 d. What would you like to see now, to further empower Scotland’s communities? Several of the Local Authorities that responded to this question highlighted the need for additional resources to enable them to work more closely with communities. The role of community development services was also suggested by a few Local Authorities as a potential important internal partner to support the asset transfer process as well as property, estates, and legal services. The enhanced availability of start-up and capital development funds would be welcomed to support the delivery of community projects following acquisition of land and buildings. Sources of capital and revenue funding to support asset transfer were noted by a few Local Authorities as helpful, including the Scottish Land Fund and the UK Government Community Ownership Fund. One of the other Relevant Authorities made reference to the challenges of consultation fatigue and duplication for Community Transfer Bodies in relation to evidencing engagement on community asset purchase, ownership or management proposals. They suggested that Local Place Plans, which were introduced by the Planning (Scotland) Act 2019 and contain a new right for communities to develop proposals for their local area, could be the central mechanism for evidencing community-mandated proposals and that it should be explored. They also suggested that more research is needed to identify rural deprivation, hidden poverty, and community resilience or fragility, so that a nationally consistent and more nuanced set of metrics can be developed to measure this. They felt longer-term community development support and multi-year funding for development workers was required to support this approach. 4.1.3 Conclusion This part of the review has considered if asset transfer legislation is being implemented as intended by Relevant Authorities and has considered responses from 47 Relevant Authorities on four questions. As discussed above, responses indicate that asset transfer legislation is contributing to community empowerment and much has been learned through experience since it came into force in 2017. This has highlighted key learning which has informed the following findings: 4.1.4 Key Findings • Relevant Authorities view asset transfer legislation positively and although at times can be considered a complex process to navigate, it has provided a legal framework to work to and greater consistency nationally • Relevant Authorities have put better processes in place but highlighted that at times, Community Transfer Bodies can underestimate the complex legal process involved. Better awareness raising is required to address this and early meaningful engagement is key to achieving a successful outcome • The asset transfer process can be particularly challenging for some disadvantaged or smaller Community Transfer Bodies and more work needs to be done to address inequalities – more targeted support from Community Development services was highlighted as important in this space
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20 • More support is needed for Community Transfer Bodies post-acquisition including access to capital funding • Requests for updates to the asset transfer statutory guidance including case studies and questions and answers is a common theme in the review • Exploring an update to the Scottish Public Finance Manual to align better with the asset transfer statutory guidance could be beneficial for Relevant Authorities • All Relevant Authorities who responded to the review reported good awareness of support available for asset transfers including from Scottish Government and COSS
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21 4.2 Is Asset Transfer legislation empowering Community Transfer Bodies to make a positive difference in Scotland’s communities? 4.2.1 Introduction This section of the review explores the extent to which asset transfer legislation is empowering Community Transfer Bodies to make a positive difference in Scotland’s communities. To help answer this question, two reports provided by COSS were considered following a request for information from the Scottish Government. The COSS Consultation Report4 contained information from COSS who were asked by the Scottish Government to consult their networks and gain feedback from those that have engaged with the legislation. COSS sent a questionnaire to all their contacts on the COSS client database known to have used asset transfer legislation, and they also shared the questionnaire with Third Sector Interfaces5 (also known as TSIs) to try to capture the experiences of groups navigating the asset transfer process without COSS support. They also held interviews with six community organisations representative of the issues arising out of their initial survey analysis. These interviews were carried out by COSS staff between January and May 2022 (although not by advisers who had worked directly with respondents on their asset transfer applications). The COSS Asset Transfer Implementation Report6 provided information on general trends and some specific issues emerging since asset transfer legislation was enacted in January 2017. As part of this report, COSS provided comments on implementation of the legislation and outcomes for communities. The information provided is based on the experience of their advisers supporting communities navigate the asset transfer process and the various consultations they have undertaken. As outlined in section 1.2 above, COSS is funded by the Scottish Government to support the implementation of asset transfer and their insights are provided from a perspective of an organisation that is wholly supportive of asset transfer and community ownership, and is committed to seeing the legislation work well in practice. Information was also gathered from three community workshops hosted by the Scottish Government in partnership with COSS and held in Dumfries, Edinburgh, and Inverness between June and September 2023. Attendees included individuals from community organisations, public authorities, and third sector organisations who shared their experience of asset transfers. Another key part of this review was learning from a two year pilot project which looked at a central model of support for community groups considering asset transfers. 4 COSS Consultation Report provided to Scottish Government in November 2023. 5 Third Sector Interfaces (TSIs) are organisations in Scotland that provide a single point of access for support and advice for third sector organisations within local areas. Each local authority area in Scotland has a TSI, which plays a key role in representing the third sector in community planning and advocating for its interests. 6 COSS Asset Transfer Implementation Report provided to Scottish Government in October 2023.
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22 Finally, findings are presented from Rural Assets: Policy and practice insights from the devolved nations which was a UK wide study led by researchers from Glasgow Caledonian University between 2022 and 2024 on rural communities experience of land acquisition. The Scottish Government was a key contributor to this work which was conducted separately and independently of this review, but has provided important information about the positive impact of asset transfer legislation in Scotland and the learning to be gained. 4.2.2 COSS Consultation Report Summary Findings The COSS Consultation Report has provided helpful information from a survey which received 40 responses from 38 community groups with an awareness of asset transfer legislation. The COSS survey found that most respondents were interested in ownership of assets requested (29 respondents), and a further 20 responded to the survey with an interest in leasing or managing an asset instead. Overall, the majority of respondents to the COSS survey (21) felt in light of their experience, Part 5 had helped them achieve benefits for their community. Support from TSI’s was also highlighted by respondents to the survey as valuable, and respondents commented that governance, community engagement, and options appraisals were three areas where support was least needed and their greatest strengths lay. The COSS survey concluded that Part 5 of the Act has succeeded in providing community groups with a more prominent, rights supported, route to the use of land and buildings for community benefit. It was perceived that the full benefit of the rights, however, have been undermined by the negative experience too many groups continue to have. Areas highlighted by COSS requiring improvement include: • the inconsistent availability of information from Relevant Authorities on asset transfer and the processes underpinning it • the availability of information by Relevant Authorities on the assets and the internal processes required to enable community groups to navigate that route • the lack of clarity and poor experience many community groups have of the validation stage of the asset transfer process • the lack of support for key elements of the process including valuation, technical design survey and legal costs The interviews COSS conducted with six community organisations also highlighted a lack of information on some Relevant Authority websites, in addition to disproportionate requests and onerous requirements to provide information and a lack of support or engagement with the Community Transfer Body. On infrastructure, the support of third sector organisations was highlighted as important. It was suggested that some changes to timescales for decisions in the legislation may help improve outcomes. 4.2.3 COSS Asset Transfer Implementation Paper Summary Findings The COSS Asset Transfer Implementation Paper provided helpful insights on general trends and some specific issues emerging since asset transfer legislation was enacted in January 2017 and made a number of observations. The extensive information provided by COSS is not all included in this report, however key points are summarised. These
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23 include proposed updates to the asset transfer statutory guidance such as encouraging proportionate approaches to transferring assets outwith the legislation particularly in relation to leases; including clear details of support available on governance and eligibility criteria for Community Transfer Bodies including signposting to external support; strengthening guidance on how to deal with multiple Community Transfer Bodies interest in the same asset; and exploring any changes to State Aid7 following the UK exit from the EU. Other key observations are: • more robust information is required and ways to encourage compliance should be explored as asset registers published by is varied despite Section 94 of the Act stating that each Relevant Authority must establish and maintain a register of land and make it publicly available • Community Transfer Body membership numbers for asset transfer ownership requests should be reduced from the current 20 to 10 to align with Community Right to Buy Land legislation • introduce a 10 working day response time to a formal asset transfer request • include information on non-financial benefits of asset transfers and obtaining joint valuations • annual reporting requirements should be reviewed to capture more information on community groups and assets transferred, and for Relevant Authorities to return their reports to Scottish Government annually • the need for post-acquisition funding support as the single most important issue if asset transfer ambitions are to be realised COSS highlighted challenges that some Community Transfer Bodies experience when a public asset is managed by an Arm’s Length Executive Organisation8 (sometimes referred to as an ALEO), due to lack of transparency of who owns the asset. COSS suggests the issue of ALEO transparency is explored and more clarity is provided by the Scottish Government. This issue was also previously raised by then Local Government and Communities Parliamentary Committee in 2021 and was discussed at the National Asset Transfer Action Group. This review has found that only a very small number of Community Transfer Bodies have been affected and providing information in the asset transfer statutory guidance will be explored to provide more clarity. 4.2.4 Learning from a ‘Hub and Spoke’ Model To explore novel approaches to embedding asset transfer with a focus on supporting areas experiencing inequalities, COSS in partnership with the Scottish Government supported a two year pilot exercise in Barmulloch, Glasgow during 2021-2022. The ‘Hub and Spoke’ model of support was coordinated by a local organisation, the Barmulloch Community Development Company (BCDC), and funded jointly by the Scottish Government and COSS. It trialled a peer led support approach to asset transfers with BCDC supporting local groups through the process, helping with their applications, advising on funding, and signposting to other support channels where necessary in the North and East of Glasgow, and supported 11 local groups progress their asset transfers over a period of 18 months. 7 State Aid: State aid: guidance - gov.scot 8 ALEOs are established by Local Authorities to deliver services but are legally separate bodies that are extremely diverse in size, function and structure.
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24 Learning from the Hub and Spoke model has shown that a targeted model of support for smaller and newer organisations can yield positive results. A local anchor group such as BCDC with experience of working with local partners can be crucial in making connections for new groups who otherwise may have struggled to do so. For example, links to funding sources, advice on taking on assets outwith legislative methods, and relationship building. This model demonstrated an innovative approach to achieving short term outcomes to support local organisations take on public land or buildings using asset transfers, who otherwise may not have engaged with the process. It also showed the potential to upscale to other areas of Scotland and could be adapted in different local contexts. 4.2.5 Overview of findings from Community Workshops The community workshops held in 2023 and organised by Scottish Government and COSS provided further information from those with experience of engaging with the asset transfer process. The workshops found that when provided, support from the Relevant Authority is valued as it makes the process smoother and more transparent for the Community Transfer Body. Areas where support was needed included at the expression of interest stage of the process including clear guidance on validation, accessing funding and post-acquisition support. Another key point raised was the need for clearer asset registers as also outlined by COSS above. 4.2.6 Rural Experiences of Community Asset Acquisition Rural communities can sometimes face particular challenges that affect community resilience and wellbeing, and the acquisition of local assets can play a role in strengthening local networks and community empowerment. The project “Rural Assets: Policy and Practice Insights from the Devolved Nations”9 was led by researchers from Glasgow Caledonian University with input from Bangor University, University of Highland and Islands, James Hutton Institute, Anglia Ruskin University, Community Thinking Organisation, and Derry and Strabane District Council. It was funded by the British Academy and the Nuffield Foundation collaboration on Understanding Communities. The Scottish Government was a contributor and was interested in gaining a better understanding of the experiences of rural communities using asset transfer legislation. The project ran from 2022 to 2024 and compared rural asset acquisition approaches across the four UK devolved nations. It aimed to understand the impacts of the processes of community asset acquisition upon the empowerment, resilience and wellbeing of rural communities. The report found that Scotland is often viewed as the most advanced nation in the UK for community asset acquisition due to the presence of Part 5 of the Community Empowerment (Scotland) Act 2015, and also including the Land Reform (Scotland) Act 2003 and the Land Reform (Scotland) Act 2016. 9 The Rural Assets: Policy and practice insights from the devolved nations full report was published on 24 September 2024 and their Scottish findings report can be accessed here.
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25 Their research found that capacity and knowledge building around the legislative process was needed across the UK, including opportunities for shared learning from other rural communities who have been through the process. It recommended that further resourcing and training is required to provide consistency, accountability and adoption of community asset transfer (and community empowerment more broadly) across all Relevant Authorities, and, in particular, training is required around keeping to timescales, proactively changing resistant cultures, and reducing levels of bureaucracy. However, their report10 found that Scotland is the most advanced nation in the UK in term of policy and law for community asset acquisition, and further opportunities should be identified to share learning with the other UK nations around what works (and what hasn’t worked so far), and in particular the differences that legislation had made since its introduction. 4.2.7 Conclusion This section of the review explored the extent to which asset transfer legislation is empowering Community Transfer Bodies to make a positive difference in Scotland’s communities. It includes learning from two COSS reports, three community workshops organised by Scottish Government in partnership with COSS in 2023, a two year pilot project which looked at a central model of support for community groups and a UK wide study on rural communities experience of land acquisition. Although from a small sample size, the COSS survey found the majority of respondents felt asset transfer legislation had helped them achieve benefits for their community. However, areas highlighted by COSS requiring improvement included better asset transfer information on Relevant Authority websites, more transparency relating to the validation stage of the application process and more support for other key elements such as valuation, technical design and legal costs. Feedback from the 2023 community workshops held by Scottish Government and COSS reiterated these challenges. COSS’s insights on general trends and issues based on their extensive experience supporting asset transfer since it came into force has suggested a number of areas for improvement in the asset transfer statutory guidance. They observed that more robust information is required on asset registers, reducing the Community Transfer Body membership numbers from 20 to 10 to align with Community Right to Buy Land legislation was needed and also introducing a 10 working day response to a formal asset transfer request. COSS also suggest greater information was needed on non-financial benefits of asset transfers and joint valuations, better annual reporting and the need for post- acquisition funding for Community Transfer Bodies. Learning from the Hub and Spoke Model has demonstrated the value of peer support at a local level and how a targeted model of support for smaller and newer organisations can yield positive results. The community workshops highlighted areas where more support is needed to ensure a smoother process. 10 The Rural Assets: Policy and practice insights from the devolved nations full report was published on 24 September 2024 and their Scottish findings report can be accessed here.
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26 As well as the data outlined above, the “Rural Assets: Policy and Practice Insights from the Devolved Nations” project has provided helpful information in relation to how rural communities across the UK are engaging with community asset acquisitions. The report found that Scotland is viewed as the most advanced nation in the UK for community asset acquisition due to the legislation in place and proposed opportunities should be identified to share learning with the other UK nations around what works. 4.2.8 Key Findings • Asset transfer has helped Community Transfer Bodies achieve benefits for their communities and has provided community groups with a more prominent, rights supported, route to the use of land and buildings for community benefit • Community workshops held during 2023 found that more support for local groups was called for at the expression of interest stage, the decision making processes, how to access funding and post-acquisition support • The review has highlighted that updates to the asset transfer statutory guidance are required to make the process clearer • Legislative proposals are suggested by COSS including changing the requirements for Community Transfer Body membership numbers and introducing a timeframe to respond to formal asset transfer requests • More robust information is required on asset registers published by Relevant Authorities to help communities identify assets that may be available through asset transfer as outlined by Section 94 of the Act • Greater clarity is needed on the use of ALEOs and their role in the asset transfer process • COSS highlight that the need for post-acquisition funding support as the single most important issue if asset transfer ambitions are to be realised • The value of peer support at a local level and how a targeted model of support for smaller and newer organisations can yield positive results and this could be upscaled to other areas of Scotland • Research has demonstrated that Scotland is viewed as the most advanced nation for community asset acquisition due to the asset transfer legislation and opportunities should be identified to share learning with the other UK nations around what works
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27 4.3 Are the appeals and reviews mechanisms working as intended? 4.3.1 Introduction Asset transfer legislation includes an appeals and review mechanism for Community Transfer Bodies, and this process is co-ordinated by the Scottish Government’s Public Service Reform Directorate. Asset transfer requests must be assessed by the Relevant Authority against a specified list of criteria laid out in the Act, and requests must be agreed unless there are reasonable grounds for refusal. However, under Part 5 legislation a Community Transfer Body can seek a review or appeal if their asset transfer request is: • refused • agreed but the terms and conditions in the decision notice are significantly different from those in the request • no decision notice is issued within the required period • agreed but no contract is concluded within the required time limit The legislation provides for separate approaches to considering asset transfer appeals or reviews depending on the Relevant Authority. When an asset transfer request is refused by a Local Authority, the Community Transfer Body can apply for an internal review by that Local Authority, as set out in Section 86 of the Act. If the internal review upholds the initial decision made by the Local Authority to refuse the asset transfer request, or if the Community Transfer Body disagrees with the review decision, they can then appeal to Scottish Ministers under Section 88 of the Act. These asset transfer appeals are considered on behalf of Scottish Ministers by the Scottish Government’s Department of Planning and Environmental Appeals who allocate an independent Reporter to the case. When an asset transfer request is refused by other Relevant Authorities such as health providers, further education colleges and regional transport partnerships on the asset transfer list in Schedule 3 of the Act (see Annex A), the Community Transfer Body can appeal to Scottish Ministers under Section 85 of the Act. In these circumstances there is no internal review process included in the legislation, and appeals are considered directly on behalf of Scottish Ministers by the Department of Planning and Environmental Appeals independent Reporter. If the asset transfer request is refused by organisations managing assets on behalf of Scottish Ministers such as Scottish Government agencies, the Community Transfer Body can apply for a review by the Scottish Ministers under Section 87 of the Act. In these circumstances, the legislation states the Scottish Government must establish an independent panel of three to consider the review and report their findings and recommendation to Scottish Ministers. If an appeal or review request has been considered by Scottish Ministers and awarded to the Community Transfer Body, but no contract has subsequently been agreed within the required time limit, the Community Transfer Body can appeal to Scottish Ministers under Section 83 of the Act. Also, in these circumstances, the Scottish Government must
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28 establish an independent panel of three people to consider the appeal and report findings and their recommendation to Scottish Ministers. These appeals are rare and are likely to concentrate on contractual negotiations between the Community Transfer Body and the Relevant Authority. In all cases the Department of Planning and Environmental Appeals Reporter or the independent panel must provide a report with a recommendation to the Minister with portfolio responsibility for asset transfer who will have the final decision on behalf of Scottish Ministers. There is no further route of appeal beyond this stage except a judicial review. 4.3.2 Appeals and Reviews Data Since asset transfer legislation came into force on 23 January 2017, the Scottish Government has considered 16 appeals and one review submitted by Community Transfer Bodies. From the 16 appeals that have progressed to Scottish Ministers for decision, 12 related to Local Authority assets with nine for purchase, ranging from ownership offers of £1 to around £3 million, and three requests were made for leasing rights. Eight out of the nine appeals for purchase were upheld and therefore refused, with one granted. One of the three appeals to Local Authorities for lease related to a 15 year lease for £1,500 per annum which was refused. The other two appeals were made for the same asset which was a five year lease for £1 per annum. The first appeal lodged to the Scottish Government was undertaken by a Department of Planning and Environmental Appeals Reporter, and Scottish Ministers granted the asset. The second appeal for the same asset was submitted by the Community Transfer Body as no contract was concluded and this is still ongoing and being considered by an independent review panel. Four appeals that progressed to Scottish Ministers for decision related to NHS property, three of these requested ownership and one for lease. Two of the three decisions for ownership requests were upheld and refused, and one was withdrawn as the Relevant Authority and Community Transfer Body came to an agreement to transfer outwith the legislative process. The request for lease was granted which was a 25 year lease for land and buildings at £52 per annum. Finally, the one review received for a Scottish Ministers owned asset to purchase 8.28 hectares of land for £95,000 was granted. In summary, 11 appeals have been refused by Scottish Ministers, four appeals have been awarded, and one review has also been awarded. One appeal was being considered at the time of writing this report. Full details of each appeal and review that have progressed to Scottish Ministers for decision can be accessed in the Scottish Government asset transfer appeals and reviews summary document including Relevant Authority and Community Transfer Body names, relevant dates, type of request and asset, decisions and weblinks to all associated documents. 4.3.3 Overview of Learning from Appeals and Reviews In the eight years that asset transfer legislation has been enacted, 16 appeals and one review could be considered a low number in the context of the number of asset transfer requests that have been made and awarded. Although this report cannot provide robust
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29 data for asset transfer activity due to the various differences in local recording practices, it is fair to conclude that from the information currently available on Relevant Authority websites, the numbers of asset transfer applications and those granted are much greater than those that have progressed to an appeal or review. For example, to put into context, from information published by Forestry and Land Scotland (one of a total of 95 Relevant Authorities), there has been more than 33 asset transfers awarded since 2017. Learning from the reports of the independent Reporters shows that the appeals and review process can be a time consuming and challenging experience for both Relevant Authorities and Community Transfer Bodies. Appeals and reviews can also take a long time to conclude depending on the complexity of the asset in question. For example, from lodging an appeal or review to the Scottish Government to a final decision, the average time taken to consider the request has been five to eight months, with the shortest appeal time so far taking five months to consider, and the longest appeal has taken one year and five months to consider; however, this was the first one ever received. The appeal that has taken the longest time to consider to date is for a five year lease of community land at £1 per annum, and is still being considered, and was first received in June 2021. These timescales do not take into account any internal review undertaken by a Local Authority prior to the appeal to Scottish Ministers being considered. The review that related to a Scottish Ministers owned asset to purchase 8.28 hectares of land for £95,000 which was granted, took one year and 10 months to consider. As this review was the first ever received, it also involved creating new processes to consider these requests alongside the actual review itself. The extensive appeal and review reports provided by the Department of Planning and Environmental Appeals Reporters and independent panel since 2018 has provided helpful insight and learning, not previously available, on the opportunities and challenges relating to asset transfer legislation. The reports highlight a number of areas where procedures could be amended to acknowledge the uniqueness of asset transfers compared to standard property transactions. For example, in the asset transfer report of Beatroute Arts a Community Transfer Body requested ownership of a building for £45,000 from the Local Authority. In their report to Scottish Ministers, the independent Reporter highlighted the opportunity for a tailored approach for asset transfers under Part 5 legislation that accounts for non-financial benefits, regeneration, contribution to public health, and social wellbeing. The Reporter found that flexibility of conditions of transfer may need to be adapted by Relevant Authorities to account for these benefits which can be challenging to account for in the assessment phase given their subjective and non-quantifiable nature. A report submitted by the independent Reporter considering an appeal from Brechin Healthcare Group highlighted the non-tangible benefits of asset transfers and the challenges faced by in calculating the social value of asset transfer requests. In the asset transfer report of Brechin Healthcare Group, the independent Reporter considered a decision made by NHS Tayside to refuse an asset transfer requesting ownership of a building for £150,000. They noted the challenges in balancing community benefit with value. Reporters acknowledged that the Scottish Public Finance Manual makes no specific reference to asset transfer legislation and may benefit from updating to account for this, which was also highlighted by Relevant Authority feedback in section 4.1.2 of this report.
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30 A report by the independent Panel that considered the asset transfer review from Knocknagael Ltd also observed that there was nothing within the Scottish Public Finance Manual to guide either the panel, or Scottish Government officials on the inter-relationship between the manual and asset transfer policy. They also noted that the manual section on best value gives no information on how competing value assessments are to be made. The Knocknagael review panel recommended that Scottish Ministers reflect, for the future, on the wording of the manual and its inter-relationship with community asset transfer policy. The independent panel also highlighted the challenge of a Scottish Government department’s role as an independent Relevant Authority. Learning from the Knocknagael review highlighted that Relevant Authorities representing Scottish Ministers should be able to draw on expertise from other areas in the wider Scottish Government. This would enable the appropriate expertise to be consulted and could attend as witnesses to express their respective policy perspectives. The panel found this could help support reviews, however this would have to exclude officials from the Public Service Reform Directorate who co- ordinate all appeals and reviews. 4.3.4 Overview of Findings from COSS Reports In the COSS Asset Transfer Implementation Report, COSS provided comments on the asset transfer appeals and review procedures based on the experience of their advisers. From this experience, COSS’s view is that the review and appeals processes are some of the most complex areas of the legislation, can be challenging, time consuming and can affect the wellbeing of individuals involved in the process. COSS propose that one way to reduce some of these challenges is to increase the current 20 working day limit for a Community Transfer Body to appeal an asset transfer decision, as the current limit is insufficient time to deliberate and collate all the necessary evidence needed. This could provide more time to submit better quality applications and more importantly, enable improved negotiation following an agreement of an asset transfer request where the terms and conditions are unacceptable to the community. The 20 working days to conclude complex negotiations around conditions can at times be difficult and in some cases, the Community Transfer Body is compelled to appeal simply to preserve that right, when they would have preferred not to appeal. COSS propose increasing the timescale to appeal to three months. COSS acknowledge that the time taken by Department of Planning and Environmental Appeals Reporters to consider appeals on behalf of Scottish Ministers has improved over time and this is outlined in the overview of appeals and reviews section above, with the average time being five to eight months. However, as Scottish Government Minister appeals have no legislative deadline to complete the process, COSS propose Ministerial reviews and appeals processes should be aligned with Local Authority review processes by introducing a six-month deadline for a decision to be made, with an option for extension if agreed by the community. COSS also propose that two separate documents for a Local Authority internal view and Ministerial reviews would aid clarity, or alternatively updating the statutory guidance including a flow chart would be helpful. Finally, in the spirit of supporting community empowerment, COSS suggest that it would be helpful practically to ensure Community Transfer Bodies are informed in advance when important deadlines are approaching. For example when a Relevant Authority does not
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31 issue a decision notice within the allowed time but no extension is agreed, it can risk the community losing its right to review or appeal. COSS propose introducing a mechanism that either requires an Relevant Authority to notify the Community Transfer Body that the six months has passed, or remove the 20 working day limit for reviews or appeals where no decision notice has been made. As outlined above COSS also provided a Consultation Report that outlined findings from a survey of individuals with experience of the asset transfer process and this includes information about reviews and appeals. Community Transfer Bodies view the opportunity in the legislation to appeal a decision on an asset transfer request positively. As already highlighted by COSS, those who took part in the survey agree that the experience can be challenging, in particular the time taken to prepare documentation, evidencing community benefits, secure funding at appropriate stages and navigating the legislative process. 4.3.5 Overview of Findings from Community Workshops As outlined earlier, during 2023, three community workshops were facilitated by Scottish Government and COSS. A small number of attendees shared their experience of the asset transfer appeals and review process. This included feedback that 20 working days is insufficient time for community groups to prepare and submit asset transfer appeal documentation, that there is a lack of deadlines when an appeal or review is submitted to Scottish Ministers, and the lack of timeline for Relevant Authorities to make an offer to the Community Transfer Body following an appeal decision is unhelpful. 4.3.6 Conclusion This section of the review has considered if the appeals and reviews mechanisms for asset transfer legislation are working as intended. This includes learning from the reports of the appeals and review processed by the Scottish Government to date. It also considered information about appeals and reviews in the COSS Asset Transfer Implementation Report and the COSS Consultation Report. Finally, information from three community workshops hosted by the Scottish Government and COSS was considered. Since asset transfer legislation came into force in 2017, the Scottish Government has considered 16 appeals and one review submitted by Community Transfer Bodies. Eleven of these appeals have been refused, four awarded and one is currently in progress. The one review request that has been received to date was also awarded. Considering that asset transfer legislation has been in force for almost eight years the number of requests that have progressed to an appeal or review could be considered very low. Additionally, with the majority of those requests being upheld it indicates that the appeal and review processes in place are working, although Relevant Authorities and Community Transfer Bodies can at times find these difficult to navigate. The appeal and review reports provided by the Reporters and independent panel has provided helpful learning that acknowledges the uniqueness of asset transfers and includes some suggestions for procedural improvements. For example reports highlighted that better flexibility of conditions of transfer should be considered by to account for the non- financial benefits, regeneration, contribution to public health and social wellbeing that asset transfers can contribute to. The Reporters acknowledge that these community benefits can be challenging to account for in the assessment phase, given their subjective and non-
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32 quantifiable nature, in particular calculating the social value of asset transfer requests. In two cases, one Reporter who led on an appeal and the independent panel who led on the review, highlighted that the Scottish Public Finance Manual makes no specific reference to asset transfer legislation and may benefit from updating to account for the inter-relationship between the manual and asset transfer policy. The review independent panel also highlighted significant learning from the first Scottish Government owned asset review and suggested that Relevant Authorities representing Scottish Ministers should be able to draw on expertise from other areas in the wider Scottish Government. Feedback from the appeals and review sections in the two COSS reports commented that the appeals and review processes can be complex and time consuming but acknowledge that the time taken by the Reporters to consider these has improved over time. They propose changes to some of the legal timescales required in the appeals and review processes and aligning those with Local Authority internal review timescales. Better guidance was also proposed to aid clarity of process. 4.3.7 Key Findings • Since asset transfer came into force on 23 January 2017, 16 appeals and one review have been received and numbers are low for an eight year period • Asset transfer appeals and reviews are working well and despite their complexity and uniqueness, the majority have been upheld • Significant learning has been gained from the appeal and review reports which include suggestions for procedural improvements • One report highlighted that Scottish Government departments receiving a review on behalf of Scottish Ministers, should be able to draw on expertise from other areas in the wider Scottish Government • The review found that the Scottish Public Finance Manual makes no specific reference to asset transfer legislation and may benefit from updating for better alignment • COSS propose increasing the current 20 working day limit for a Community Transfer Body to appeal to three months and a that a deadline for Scottish Government appeals and reviews should be introduced to align with the six month internal review timescale for Local Authorities • COSS propose to help improve clarity that two separate guidance documents for internal reviews and Scottish Government reviews are produced, or alternatively updating the asset transfer statutory guidance to reflect this
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33 5. Conclusion and Next Steps This report has provided findings from a review of the implementation of asset transfer legislation by Relevant Authorities, explores the impact it is having on communities, and assesses if appeals and review mechanisms are working as intended. The review has attempted to gather as much information as possible from a variety of sources including Relevant Authorities, Community Transfer Bodies, COSS, appeals and review reports provided from independent Reporters and finally, considered findings from a UK report on rural assets undertaken separately and independently of this review. A key part of this review was analysing asset transfer activity since the legislation was introduced on 23 January 2017 and collating as much data as possible from Relevant Authority websites and completed annual reporting templates. In the course of conducting the review it became apparent that low reporting compliance, the varying recording methods used by Relevant Authorities and the fact that decisions on asset transfers can span reporting years, has made asset transfer activity data very challenging to collate. Given these gaps and complications it has not been possible to provide detailed quantitative breakdowns on asset transfer applications and their outcomes. More work needs done to collate robust quantitative asset transfer data to better understand its impact. However, the qualitative data provided as part of this review found that the legislation has shifted the balance of power towards communities as it has provided Community Transfer Bodies with a more prominent, rights supported route to the use of public land and buildings. It has also provided a more level playing field and greater consistency of approach nationally, across all of the different public sector providers listed as Relevant Authorities. This has created greater transparency of process and provided communities with more awareness of the availability of public assets outwith Local Authority assets alone. The review found more robust Relevant Authority asset register information would be beneficial to help communities identify assets that may be available as required by asset transfer legislation. The challenge of securing funding at post-acquisition stage was highlighted as one of the most important issues to resolve if asset transfer ambitions are to be realised. The review found that the asset transfer process can be complex and time consuming for both Relevant Authorities and Community Transfer Bodies and that expert advice provided by COSS is valued. This review has highlighted how a central model of support to help local community groups engage with the asset transfer process can yield positive results for groups who may benefit from a more structured approach. Opportunities to share learning from the Barmulloch Hub and Spoke Model should be explored to enable Relevant Authorities consider adapting local versions across Scotland to help address inequalities.
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34 Insights have also been gained from the appeal and review reports provided by the Reporters and independent panel, providing helpful learning not previously available that acknowledges the uniqueness of asset transfers and includes some suggestions for procedural improvements. The review has found that the appeals and reviews process is working well. At the time of publishing this report, numbers submitted remain low with 16 appeals and one review received since 2017, and the majority of those requests were upheld. In response to the findings of this review, the Scottish Government will: • Refresh the remit and membership of the National Asset Transfer Action Group to consider the key findings of this report • Work collaboratively with Relevant Authorities, Community Transfer Bodies, the refreshed National Asset Transfer Action Group and key stakeholders including COSS, to explore options to strengthen the operation of asset transfers including considering proposals to update the statutory guidance • Work with Relevant Authorities, COSLA, the refreshed National Asset Transfer Action Group and key stakeholders including COSS to explore options for gathering accurate and robust asset transfer data - including information on assets transferred into community ownership (asset type and area) • Consider the value of independently evaluating the impact of community asset transfer ownership or lease on local communities and how this is contributing to community empowerment and public service reform
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35 Annex A Asset Transfer Legislation: List of Relevant Authorities Relevant Authorities are listed in Schedule 3 of the Act and are also listed in part 6 of Scottish Government published guidance for Relevant Authorities. To note that the list can change over time as are added and removed as required. As of 5 March 2025 there are 95 Relevant Authorities for the purposes of asset transfer legislation as follows: Local Authorities: 32, Education: 16, Health: 21, Transport Partnerships: 7, Scottish Ministers: 19 32 Local Authorities Aberdeen City Aberdeenshire Angus Argyll and Bute Clackmannanshire Dumfries and Galloway Dundee City East Ayrshire East Dunbartonshire East Lothian East Renfrewshire City of Edinburgh Falkirk Fife Glasgow City Highland Inverclyde Midlothian Moray Na h-Eilean an Siar North Ayrshire North Lanarkshire Orkney Islands Perth and Kinross Renfrewshire Scottish Borders Shetland Islands South Ayrshire South Lanarkshire Stirling West Dunbartonshire West Lothian
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36 16 Further Education Colleges which are Incorporated Colleges Ayrshire College Borders College City of Glasgow College Dumfries and Galloway College Dundee and Angus College Edinburgh College Fife College Forth Valley College Glasgow Clyde College Glasgow Kelvin College New College Lanarkshire North East Scotland College Royal Conservatoire of Scotland South Lanarkshire College West Lothian College West College 21 Health NHS Ayrshire and Arran NHS Borders NHS Dumfries and Galloway NHS Fife NHS Forth Valley NHS Grampian NHS Greater Glasgow and Clyde NHS Highland NHS Lanarkshire NHS Lothian NHS Orkney NHS Shetland NHS Tayside NHS Western Isles NHS Health Scotland NHS National Waiting Times Centre (Golden Jubilee Hospital) NHS 24 Scotland Scottish Ambulance Service The State Hospitals Board for Scotland NHS National Services Scotland Healthcare Improvement Scotland
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37 7 Regional Transport Partnerships Shetland Transport Partnership (ZetTrans) Highlands and Islands Transport Partnership (HITRANS) North East of Scotland Transport Partnership (NESTRANS) Tayside and Central Scotland Transport Partnership (TACTRAN) South East of Scotland Transport Partnership (SESTRAN) Strathclyde Partnership for Transport (SPT) South West of Scotland Transport Partnership (SWESTRANS) 19 Scottish Ministers Cairngorms National Park Authority Forestry and Land Scotland Highlands and Islands Enterprise Historic Environment Scotland Loch Lomond and the Trossachs National Park Authority Royal Botanic Garden, Edinburgh Scottish Canals Scottish Enterprise Scottish Environment Protection Agency Scottish Fire and Rescue Service Scottish Government Rural Payments and Inspections Division Scottish Natural Heritage Scottish Police Authority Scottish Prison Service Scottish Water (British Waterways Board) The Crofting Commission The Scottish Courts and Tribunals Service Transport Scotland Visit Scotland
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38 Annex B References 1. Scottish Government Asset Transfer Guidance for Relevant Authorities: published 23 January 2017. Scottish Government: asset transfer guidance for relevant authorities 2. Scottish Government Asset Transfer Guidance for Community Transfer Bodies: published 23 January 2017. Scottish Government: asset transfer guidance for community transfer bodies 3. Community Ownership Support Service (COSS) - Resource library including link to asset transfer case studies: Resources | DTAS Community Ownership Support Service 4. Scottish Government Asset Transfer Summary Guide: published 19 January 2017. Scottish Government summary guide to asset transfer 5. Scottish Government Asset Transfer Social Value Guidance: published 7 September 2021, Scottish Government social value guidance 6. Scottish Government National Asset Transfer Action Group: formed in October 2020 to take forward the findings and recommendations of Glasgow Caledonian University’s three year evaluation on asset transfer. National Asset Transfer Action Group 7. Scottish Government Asset Transfer Requests - Index of Notifications (appeals): Asset transfer requests: index of notifications - gov.scot (www.gov.scot) 8. Scottish Government Department for Planning and Environmental Appeals – Asset Transfer Appeals and Reviews: Scottish Government DPEA 9. Scottish Government Community Ownership in Scotland 2023. Annual report that shows the extent of community ownership in Scotland. Published by Scottish Government on 26 November 2024 Community Ownership in Scotland 2023 10. Scottish Parliament Local Government and Communities Committee (Session 5) Report: Community Empowerment: Taking Stock of Participation Requests and Asset Transfers Four Years On. Published 26 February 2021 Community Empowerment: Taking Stock of Participation Requests and Asset Transfers Four Years On | Scottish Parliament 11. Glasgow Caledonian University - Asset Transfer Requests: Evaluation of Part 5 of the Community Empowerment (Scotland) Act 2015: published 30 July 2020, Glasgow Caledonian University. Glasgow Caledonian University Asset Transfer Evaluation Report 12. Glasgow Caledonian University - Rural Assets: Policy and Practice Insights from the Devolved Nations Rural Assets Report
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© Crown copyright 2025 This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise stated. To view this licence, visit nationalarchives.gov.uk/doc/open- government-licence/version/3 or write to the Information Policy Team, The National Archives, Kew, London TW9 4DU, or email: psi@nationalarchives.gsi.gov.uk Where we have identified any third party copyright information you will need to obtain permission from the copyright holders concerned. This publication is available at www.gov.scot Any enquiries regarding this publication should be sent to us at The Scottish Government St Andrew’s House Edinburgh EH1 3DG ISBN: 978-1-83691-412-9 (web only) Published by The Scottish Government, March 2025 Produced for The Scottish Government by APS Group Scotland, 21 Tennant Street, Edinburgh EH6 5NA PPDAS1553734 (03/25) w w w . g o v . s c o t