Community Wealth Building Charter (Takki Sulaiman)
Argyll and Bute Council · 6 June 2025
Back to Argyll and Bute Community Planning Partnership - Management Committee — 6 June 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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Classification: OFFICIAL Community Wealth Building - priority recommendations and next steps 1.0 Purpose The purpose of this paper is to provide the CPP Management Committee with key priorities from the CLES CWB report that the CWB steering group has identified as areas to work on first. Three meetings took place from January to April 2025. All the recommendations in the CLES CWB paper have been allocated a priority ranking on a scale 1-3 and categorised as easy, medium or hard to deliver. Procurement (spending pillar) has been identified as a top priority. 2.0 Recommendations The CPP Management Committee is asked to note and agree the CWB Steering Group’s recommendations: • Note and agree the proposed priorities for action at section 3.2.3 and appendix 1 and to comment and amend as necessary before identifying next steps such as developing a CWB action plan like Clackmannanshire1; • Comment on a CWB CPP members’ charter for Argyll and Bute (appendix 2) like the one used by Stirling Council’s Procurement Department 2 and North Ayrshire’s CPP charter 3; • note the recommended action on Employee-Owned Businesses at section 5; • Note the Bill submission to the Holyrood Economy and Fair Work Committee presented at CPP in April 2025; • consider any further actions required to develop the Argyll and Bute CPP approach to Community Wealth Building ahead of the implementation of legislation over the coming year. 3.0 Background and context 3.1 The five pillars of CWB The five principles of Community Wealth Building have been developed by the Centre for Local Economic Strategies4 over a number of decades through work with anchor institutions across the UK and the World. These are:- 1 https://www.clacks.gov.uk/document/6940.pdf 2 https://home.scotland-excel.org.uk/media/kp2hzmvb/3-procurement-community-wealth-building-charter- template-docx.pdf 3 https://www.north-ayrshire.gov.uk/Document-library/cwb-anchor-charter.pdf 4 https://cles.org.uk/what-is-community-wealth-building/the-principles-of-community-wealth-building/ CWB Steering Group Paper to CPP Date: 6th June 2025
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Classification: OFFICIAL • Plural ownership of the economy. • Making financial power work for local places. • Fair employment and just labour markets. • Progressive procurement of goods and services. • Socially productive use of land and property. Anchor institutions are identified as statutory and third sector bodies which can influence ‘economic engines’: The term is used to refer to organisations which: • Have an important presence in a place, usually through a combination of: being largescale employers, the largest purchasers of goods and services in the locality, controlling large areas of land and/or having relatively fixed assets. • Are tied to a particular place by their mission, histories, physical assets and local relationships. Examples include local authorities, NHS trusts, universities, trade unions, large local businesses, the combined activities of the community and voluntary sector and housing associations. The Scottish Government has published an overview of the responses received to their January 2023 consultation paper on Community Wealth Building legislation5. 3.2 Detailed Summary of the Argyll and Bute Report on Community Wealth Building 3.2.1 Introduction The Argyll and Bute Community Wealth Building (CWB) report, commissioned by the CPP, prepared by the Centre for Local Economic Strategies (CLES) and published in April 20246 sets out a transformative approach to local economic development. It identifies systemic challenges such as depopulation, housing shortages, and land value extraction, arguing that traditional economic models have failed to address these issues adequately. The report asserts that "community wealth building should be intrinsic to the economic strategy of Argyll and Bute" and cannot be treated as an add- on but must be fully embedded in local policy.” 3.2.2 Economic and Social Context Argyll and Bute faces acute economic challenges, including: • Depopulation: The region has been experiencing a steady decline in population, particularly among young people, leading to a shrinking workforce. • Housing Crisis: High property prices, a shortage of affordable housing, and the prevalence of second homes make it difficult for local workers to live in the area. • Extractive Economic Model: Many local assets and industries, including energy and tourism, generate wealth that is extracted from the region rather than reinvested locally. 5 https://consult.gov.scot/economic-development/community-wealth-building-consultation/ 6 https://www.argyll- bute.gov.uk/moderngov/documents/s206441/Appendix%201%20Argyll%20and%20Bute%20Report%20F inal.pdf
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Classification: OFFICIAL The report states: "Market forces are negatively shaping the local economy, impacting citizens' wellbeing and quality of life. To address these deep-rooted challenges, there needs to be a step change towards an approach which has community wealth building firmly rooted at its core." 3.2.3 Recommendations using the Five Pillars of Community Wealth Building The report outlined five pillars through which CWB can be implemented and made 23 recommendations. The CWB steering group considered the first three sets of recommendations relating to pillars 1—3 in detail and will continue working on pillars 4 and 5. The details and commentary are set out in appendix 1 but the table below summarises those recommendations for priority action:- 4.0 Connections Between the Argyll and Bute CWB Report and the Economic Strategy 2024-2034 The Argyll and Bute Economic Strategy 2024-2034 explicitly aligns with Community Wealth Building (CWB) as a central principle in shaping the region’s economic future. The strategy states: "The issues identified above will be achieved through the core focus of Argyll and Bute being a wellbeing economy through embedding a Community Wealth Building approach." The economic strategy and the CWB framework share a mutual focus on localising
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Classification: OFFICIAL wealth, improving resilience, and ensuring that economic activities directly benefit the communities of Argyll and Bute. Below are the key areas where these two strategies intersect: 4.1 Economic Strategy Vision and Community Wealth Building The economic strategy defines its purpose as: "A place-based and business/person-centred approach, to secure a fair, inclusive, and prosperous future for the area, more resilient to external factors including the rapid advances in digital technology and increasing impacts of climate change." This aligns with the CWB approach, which aims to: "Change the way that our economies function by increasing the flow of wealth and opportunity for the benefit of people who live and work in the area." Both frameworks prioritise economic resilience, fair work, and localised investment to counteract external economic pressures such as depopulation and land value extraction. 4.2 Key Economic Pillars and the Five Pillars of CWB The Economic Strategy is structured around four strategic key pillars, which closely align with the five pillars of CWB. Economic Strategy Pillars Corresponding CWB Pillars People: Addressing workforce shortages and skills gaps. Workforce: Developing fair and just labour markets, promoting Living Wage commitments, and improving career pathways. Place: Investing in towns, housing, and transport infrastructure. Land and Property: Socially productive use of land, community-led regeneration projects, and affordable workspaces. Planet: Achieving Net Zero, supporting renewable energy. Finance & Inclusive Ownership: Supporting local investment into green energy and cooperative business models. Prosperity: Increasing incomes and growing the economy sustainably. Spending: Progressive procurement practices that strengthen the local economy. 4.3 Economic Strategy and Local Investment in Renewable Energy The Economic Strategy emphasises capitalizing on Net Zero opportunities, with a focus on renewable energy investments: "Delivering net zero and improving our biodiversity by supporting the sustainable growth of clean energy production (i.e. hydro, solar, wind and biomass), woodland,
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Classification: OFFICIAL peat and marine habitat restoration, encouraging green industries to develop in our area, nature-based solutions and community ownership." The CWB report also prioritises local control over renewable energy infrastructure: "Lots of reserves are sitting in third-sector current accounts. We need to move from community benefit to ownership of assets like turbines." Aligning these strategies will ensure that wealth generated from renewable energy projects remains in local communities, rather than being extracted by external investors. "Change the way that our economies function by increasing the flow of wealth and opportunity for the benefit of people who live and work in the area." Both frameworks prioritise economic resilience, fair work, and localised investment to counteract external economic pressures such as depopulation and land value extraction. 4.4 Procurement and Local Business Growth The CWB approach to procurement is mirrored in the Economic Strategy's vision for business growth: "Business growth: many of the area’s micro to small and medium-sized businesses have potential to grow, supported by appropriate business support, infrastructure and land for business development." The CWB report advocates for: "Establishing a CPP procurement working group to coordinate public spending and publishing a procurement pipeline to ensure transparency and accessibility for local businesses." Both strategies recognize that promoting public sector procurement within Argyll and Bute is essential for business development, job creation, and economic resilience. 4.5 Addressing Depopulation Through Fair Work and Housing The Economic Strategy highlights that: "The population of Argyll and Bute has decreased by 2.4% since 2011 and from 2018 to 2028 it is projected it will fall a further 5.9%." To counteract this, it recommends: • Investment in skills development to attract and retain workers. • Increased wages through Fair Work principles.
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Classification: OFFICIAL The CWB report reinforces this by advocating: "Developing a Living Wage policy for all anchor institutions and creating an Argyll and Bute Employment Charter to encourage fair employment practices." A key issue tied to depopulation is the housing crisis, which both reports identify as a critical barrier: "Argyll and Bute faces a housing emergency, depopulation challenges, and continued issues around land and value extraction." By integrating CWB principles into the Economic Strategy’s housing and employment priorities, Argyll and Bute can work towards reversing depopulation and ensuring long-term community sustainability. "Business growth: many of the area’s micro to small and medium-sized businesses have potential to grow, supported by appropriate business support, infrastructure and land for business development." The CWB report advocates for: "Establishing a CPP procurement working group to coordinate public spending and publishing a procurement pipeline to ensure transparency and accessibility for local businesses." Both strategies recognize that keeping public sector procurement within Argyll and Bute is essential for business development, job creation, and economic resilience. 4.6 Conclusion: Aligning CWB and the Economic Strategy for Maximum Impact The Argyll and Bute Economic Strategy 2024-2034 presents a significant opportunity to embed CWB principles into mainstream economic policy. The strategy itself states: "Community Wealth Building and empowerment: there is a requirement to start to embed Community Wealth Building as the key mechanism to deliver a wellbeing economy, economic development, growth and prosperity across all communities." Moving forward, the integration of CWB principles into economic development will require: 1. A coordinated regional approach, ensuring that all public institutions adopt progressive procurement, fair work, and land-use policies. 2. Embedding CWB within investment strategies, particularly in renewable energy and infrastructure. 3. Enhancing community control over local assets, ensuring wealth is retained and reinvested in Argyll and Bute. In conclusion the CWB Bill requires the publication of a three CWB action plan and annual review and this could be integrated with the Economic Strategy review process.
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Classification: OFFICIAL 5.0 Employee-Owned Businesses (EOBs) in Argyll & Bute (Author: Tom Warren, Board member of Industry Leadership Group, Scotland for Employee Ownership (SfEO), EO adviser and Independent Trustee based in Dunoon.) Vision - Grow and develop the number of employee-owned businesses in the Argyll and Bute economy Objectives • Promote employee ownership in Argyll and Bute. • Support a model of business that disrupts wealth extraction, develops a healthier private sector and builds an economy for the future. • Support local employment staying within a community of place. • Support local businesses to progress a Fair Work agenda. About Employee Ownership An employee-owned business is one where the employees, rather than external shareholders, hold the majority of the shares – this can be done directly or through an Employee Ownership Trust which will buy the shares on behalf of the employees. There is not one prescribed employee ownership model, and the structure can be shaped to fit the company. Background As part of the National Strategy for Economic Transformation (NSET), the Scottish Government has set an ambitious target of 500 employee-owned businesses in Scotland by 2030. Scotland for Employee Ownership (SfEO) supports this target, working in partnership with the EOA (Employee Ownership Association) and Scottish Enterprise’s CDS (Cooperative Development Scotland). In the CWB paper (Model of Opportunity 1: Building greater employee ownership in Argyll and Bute) Argyll and Bute is noted as ‘a fertile ground for leading the rest of Scotland in this due to a combination of a number of factors including, a high proportion of SMEs, an ageing population and with it business owners getting closer to retirement age and communities that want to play an active role and have a stake in the local economy.’ However, to date there are only 2 companies in Argyll and Bute who are EOBs. 1. John Brown (Strone), Contractors Dunoon. EOT established in 2020. 2. Helensburgh Toyota, Car Dealership Helensburgh. EOT established in 2023. This compares to 217 EOBs head quartered across Scotland at the close of 2024. For comparisons, Employee-Owned Businesses in the Highland region total 17, with Shetland having 4 companies. Much of this growth in other regions is because of the strength of the small network of EO advisers and businesses professional services such as accountants and solicitors being aware of an EOT being a viable succession model for retiring company owners.
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Classification: OFFICIAL It is recommended that more work is required to spread the news to businesses for the support for new EOTs that is available from CDS and their private sector EO adviser network in Scotland. Case Study: Helensburgh Toyota https://www.ownershipassociates.co.uk/news/helensburgh-toyota-dealership-sold-to- employees The independent dealer that has held the Toyota franchise for over 45 years is recognised as one of the franchise’s top performers for customer care in the UK, regularly appearing in the Top 5 ranking of dealers, as well as winning two European Ichiban awards for customer service too. The business was jointly owned by Gary Mulvaney and Ernie Cowan and they remained in their current roles until March 2024 as part of the handover process of the £16 million turnover business – located at two sites in Helensburgh – to the newly- formed Helensburgh Automotive Employee Trust operation. The company recently completed a £500,000 refurbishment of its service workshop as it continues to invest in the future. The business’s new leadership team comprised an experienced team with Centre Principal Tim Roome, General Sales Manager Kirsteen McGuire, Used Vehicle Manager Gavin Wilson, Finance Manager Jane Victor, Service Manager Scott Brown and Parts Manager Euan McIntosh. Managing Director Gary Mulvaney who joined the company in 1997 said: “It’s a very exciting time for the company with lots of opportunities ahead. Toyota has been a global leader in hybrid technology for over a quarter of century and is developing a range of electric and hydrogen vehicles to give our customers a genuine choice for the future. We are proud to continue to represent this trusted brand. “People have always been at the heart of what we do, whether that is staff, customers or the community” “This felt like a natural transition as the business will remain in the hands of those local staff who have made it what it is. Our customers value the service, the personal attention and the familiar trusted face when they walk in and that will remain.” Director Ernie Cowan who joined in January 1978 said: “It’s been an honour to help this business grow and thrive, but the time is right for the next generation to take things forward.” Helensburgh Toyota is believed to be the first Scottish car dealership to make the move to implement an Employee Ownership Trust. The transaction was supported by employee ownership specialists Ownership Associates with legal advice provided by Bellwether Green. Takki Sulaiman 3rd June 2025 v3 on behalf of the CPP CWB steering group For more information, please contact: Takki Sulaiman, Chief Executive, Argyll and Bute Third Sector Interface takkisulaiman@argylltsi.org.uk
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Classification: OFFICIAL Links CWB legislation consultation response updated 26th October 2023 – https://consult.gov.scot/economic-development/community-wealth-building-consultation/ Poverty Alliance citizen’s panel on CWB October 2023 - https://www.povertyalliance.org/get-heard-scotland-community-wealth-building/ EDAS guide to CWB January 2023 - https://edas.org.uk/community-wealth-building-guide/ CLES November 2022 publication on interviews with UK local authorities re: CWB and five areas for action:- https://cles.org.uk/publications/a-light-in-the-dark/ NEW North Ayrshire Community Planning partnership, 2024-2027 CWB Plan https://www.north-ayrshire.gov.uk/Document-library/cwb-strategy.pdf The role of the NHS as an anchor institution – The Health Foundation https://www.health.org.uk/publications/reports/building-healthier-communities-role-of-nhs- as-anchor-institution Example CPP CWB mapping and action plan Outer Hebrides March 2021 - https://www.cne-siar.gov.uk/media/17452/S%2019B%20-%20Appendix%20- %20Community%20Wealth%20Building%20in%20the%20Outer%20Hebrides%20Action% 20Plan.pdf
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Classification: OFFICIAL Appendix 1: CPP CWB recommendations from CLES report 2024 – priorities May 2025 The CWB Report prepared for Argyll and Bute CPP in 2024 contained 23 recommendations split across the five pillars and one overarching workstream. From January to May 2025 the CPP’s CWB steering met to discuss priorities and a response to the CWB Bill. Below we list the recommendations, where reviewed, with a priority ranking and a commentary for next steps. A. CPP Recommendations Recommendation Priority Ease of Implementation Commentary CWB intrinsic to economic strategy 1 Medium Already embedded in economic strategy refresh (section 1.3 page 5). How do we track progress and embed in the work of other partners? - Captured in the Argyll and Bute Economic Strategy Action Plan, 2024-27. - Annual review to assess how the actions in the Economic Action Plan aligns with CWB principles but perhaps the CWB action plan process contained in the Bill supersedes this. Decide on correct avenues to deliver CWB across Argyll and Bute 1 Medium Requires collaboration across local government and stakeholders - Requirement for an overarching CPP CWB Charter. Time-limited groups for Models of Opportunity 2 Easy/Medium Local group established for Cowal and Bute promoting Community Ownership in Renewable Energy schemes; third meeting pending Glenbarr example. Employee ownership - upskilling of business support providers on this type of model. Complicated agenda. Map out good practice case studies, including approaches and enablers. Awareness of existing resources such as that provided by Co-operative Development Scotland. B. PILLAR 1 - Spending Recommendation Priority Ease of Implementation Commentary Establish a CPP procurement working group 1 Easy A top priority - who and when? - Working with organisational procurement teams. Clear
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Classification: OFFICIAL guidance needed to Heads of Procurement meetings with regard to alignment with CWB priorities. Ask specific questions. - Note template charter from Stirling Council. - Timing of the legislation and associated activity prior to publication for the legislation. - Case study: scope to review barriers for local contractors. - Requirement for an overarching CPP CWB Charter. Build collective market intelligence 1 Easy What does this look like and how would we share the findings to capacity build local providers? - Data on local suppliers is captured by local heads of function and GDPR issues to consider. - Opportunity to support supplier capacity (register on PCS) for shared services. Publish a collective procurement pipeline 1 Medium When, who and how? Question to all CPP partners in sharing forward procurement plans for 2025/26. CPP meet the buyer events 1 Medium Events scheduled with Council - capture progress and evaluate next steps? Partnership with Scotland Excel? NHS? - Joint MTB events with all partners - capture all contracts of various scale. Not necessarily in person MTB events; videos, social media, etc. Develop procurement training for suppliers 1 Medium Supplier training framework in development Aligns with MTB events such as Supplier Development Programme and other local training provision as appropriate. C. PILLAR 2 - Workforce Recommendation Priority Ease of Implementation Commentary Real Living Wage Place 2 Medium Initial discussions with businesses ongoing - inserted into contracts? Legislative requirement.
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Classification: OFFICIAL Pathways into Work 2 Medium Pathways into work are being delivered across Argyll and Bute driven by funding streams such as NOLB and UKSPF. Skills needs and demand assessment for Argyll and Bute - align to work of HIREP Skills and Labour Group. Argyll and Bute Employment Charter 2 Medium Requirement to draft charter under consultation Employment Charter support 2 Medium Pulling and signposting existing information, such as Skills for Growth, Skills Development Scotland. Support framework in early stages. D. PILLAR 3 - Inclusive Ownership Recommendation Priority Ease of Implementation Commentary Identify ownership opportunities in growth sectors 2 Medium Review of key sectors - who? Review of co- operative business support 2 Medium Co-operative business support structures to be reviewed - who? Could it be included in the TSI’s forthcoming stakeholder survey? Peer support networks 2 Medium Develop connections between the different networks to share resources and identify gaps Brokering supply chain opportunities 2 Medium Discussions with key supply chain entities ongoing via procurement teams. Sharing of knowledge and progress to date? E. PILLAR 4 - Finance Recommendation Priority Ease of Implementation Commentary Mapping the alternative financial infrastructure 2 Medium Check in with national studies and mapping exercises and identify any local reviews and summaries Mapping, pooling and strategic planning of community benefits 1 Medium Place planning process means the conversations are starting to be had with some communities already along the development/community trust path route. No uniformity in strategic approach yet
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Classification: OFFICIAL but groups seem willing to pool resources, data and evidence. Community Benefits conversation needed at a national and UK level meaning this area is complex and time consuming. Develop a local finance initiative proposal 3 Hard Exploring viable finance models and explore partnerships with existing initiatives F. PILLAR 5 - Land and Property Recommendation Priority Ease of Implementation Commentary Vacant and derelict land 3 Hard Land audit commenced Rationalisation of the public estate 3 Hard Public estate rationalisation strategy under discussion Convene a Local Landowners Forum 3 Hard NFU representative engaged in discussions
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Classification: OFFICIAL Appendix 2: Argyll and Bute Community Planning Partnership Community Wealth Building Charter Our Commitment We, the members of the Argyll and Bute Community Planning Partnership, affirm our commitment to embedding the principles of Community Wealth Building (CWB) across our region. As anchor institutions rooted in place, we recognise our collective power to shape a fairer, more inclusive, and resilient local economy where wealth is created, retained, and shared more equitably across our diverse communities. Our Vision To build an economy that works for people, place and planet—where wellbeing, sustainability, and equity are core outcomes of economic activity. We will support and work towards an inclusive model of development that maximises local opportunity and minimises the extraction of wealth from our communities. Our Shared Principles We will advance the five pillars of Community Wealth Building: 1. Spending: Maximise community benefit through procurement, grow inclusive supply chains, and support local enterprises to access public contracts. 2. Workforce: Promote Fair Work, support the real Living Wage, and develop inclusive employment and training pathways in collaboration with local employers and partners. 3. Inclusive Ownership: Support diverse and democratic business models, including social enterprises, co-operatives, and employee-owned businesses, that root wealth in local communities. 4. Finance: Use our financial power to support local investment, explore ethical and social finance opportunities, and ensure community benefits are reinvested locally. 5. Land and Property: Make socially productive use of land and assets, support community ownership, and collaborate to unlock affordable workspace and housing. Our Role as Anchor Institutions We acknowledge our responsibility as major employers, landowners, procurers, and investors. We will: • Embed CWB into our strategic plans and operational decisions. • Act collaboratively through the CPP and local area groups to develop shared strategies, joint investments, and coordinated actions. • Build capacity in the third, social enterprise and community sectors to participate in and shape our local economy. • Engage citizens meaningfully in decisions that affect their economic future. Our Next Steps • Support progress towards implementation of CWB ahead of legislation with reference to the Argyll and Bute CWB Action Plan and the two Models of Opportunity on employee ownership and energy. • Prioritise actions that align with our Local Outcome Improvement Plan, Economic Strategy 2024–2034, and Climate Action priorities. • Monitor progress transparently and share learning to accelerate transformation across Argyll and Bute. Signed on behalf of the Argyll and Bute Community Planning Partnership, [Space for Signatures / Logos of CPP members] June 2025