Community Right to Bid

Stephen RolphDevelopment Manager

What’s coming up1)Background – political and

community context2)Detail – what is it, why use it, how to

use it 3)Learning – what we know so far,

issues and trends4)Help and support – inspiration,

networks, resources, grants

PollHow much do you know about the Right to Bid?

A lotSome of the basicsVirtually nothing

The drivers

Localism and Decentralisation

Doing everything at the lowest possible level and only involving central government if absolutely necessary

Localism

Giving away power to individuals, professionals, communities and local institutions

Decentralisation

“When you give people and communities more power over their lives, more power to come together and work together to make life better – great things happen.”

David Cameron, Prime Minister

People feel rooted in their neighbourhood. They are proud of it. It’s where they have the most immediate ties, the closest loyalties. It’s where they are most ready to get involved.”

Eric Pickles, Secretary of State for Communities and Local Government

Driver 1. The political vision: putting more power and opportunity into peoples’ hands

• 2010 Coalition Agreement: “Support the creation and expansion of mutuals, co-operatives, charities and social enterprises, and enable these groups to have much greater involvement in the running of public services.”

• July 2011 Open Public Services White Paper: “A decisive end to the old-fashioned, top-down, take-what-you-are-given model of public services.”

• Localism Act (2011)• March 2012 & May 2013 Open Public Services

updates.

Key government policy

• New freedoms and flexibilities for local government.

• Reform to make the planning system more democratic and more effective.

• Reform to ensure that decisions about housing are taken locally.

• New rights and powers for communities and individuals.

Plain English guide: https://www.gov.uk/government/publications/localism-act-2011-overview

From ‘powers’ to ‘rights’: The Localism Act (2011)

• Community Right to Build - Gives communities the power to build new shops, housing or community facilities without going through the normal planning process.

• Community Right to Challenge - Gives local groups the opportunity to express their interest in taking over a local service where they think they can do it differently and better.  

• Neighbourhood Planning - Gives people the chance to decide how their local area should develop and what should be built.

New rights and powers for communities and individuals

• Came info force in September 2012.• Voluntary and community organisations (and parish

councils) can nominate land and buildings to be included in a local ‘list of assets of community value’.

• The local authority is required to maintain the list. • If the owner of a listed asset decides to sell, a

moratorium period (a 6 month ‘pause’ in the sale process) will be triggered during which time the asset cannot be sold.

• This window affords communities precious time to raise the necessary funds and bid for its purchase.

Community Right to Bid (Assets of Community Value)

grant funding assets enterprise

Driver 2. Community asset ownership

• Communities generating wealth and circulating it locally.• Retaining key local buildings and services.• Increased financial & operational independence.

‘…there are no substantive impediments to the transfer of public assets to communities’, The Quirk Review http://webarchive.nationalarchives.gov.uk/20120919132719/http:/www.communities.gov.uk/documents/communities/pdf/321083.pdf

Pioneers of the movement: Coin Street Community Builders

The new practioneers 1: Hudswell Community Pub

Ingredients

Local residentsPassion, resilience, belief, and patience…and investment

FinanceCommunity Shares (residents)Grants (RDA, Locality, others)Loan/Equity (Key Fund)

AdviceCo-ops UK (community shares)Locality & others (business planning)

The new practioneers 2. Hastings Pier and White Rock

Trust Ingredients

Engagement RulesBuild membership, mobilise networks, listen actively and openly, take risks

Local residentsPassion, politics, campaigns, resilience, belief, patience……and investment

Community Share issue

• …informing the public

‘A history of community asset ownership’ http://locality.org.uk/wp-content/uploads/A-History-of-Community-Asset-Ownership_small.pdf

http://www.jrf.org.uk/search/site/Community%20asset%20ownership

• Community Asset Transfer (demand side ‘pull’).

• Multiple Asset Transfer (supply side ‘push’).• Community Shares.• Community Right to Reclaim Land.• Community Right to Build.• Community Right to Bid.• Compulsory Purchase for Communities.

Community asset acquisition – more than one tool in the box!

Empowering Communities: Making the Most of Local Assets http://tinyurl.com/9kfc8xl

Right to Bid vs Asset Transfer

Right to Bid Asset TransferBasis Statutory National policy

Type of asset Any asset Any council owned asset

Ownership Any owner Public sector

Process Defined in Localism Act Mutual negotiation

Value Market value Undervalue

Terms Freehold or lease of 25+ years

Mutual negotiation

Part 2. The Right to Bid – the detail

STEP 2:Get 21 people together and

nominate the asset

...

STEP 3:Local Authority

accepts/rejects nomination

...

STEP 4: If asset sold, up to 6 months to raise funds to bid to buy

...

STEP 5: Finance, (Community

Shares?)www.communityshares.org.uk

...

STEP 1:Get informed, get organised,

get mappingwww.mycommunityrights.org.uk

www.theplacestation.org.uk

STEP 6: Asset is brought into community control

...

The process…step by step…

Yes we can!• Local strengths & opportunities.• What do we already have? • What are we capable of? • Where do we want to go from here?• What sort of value - intrinsic; a means to

an end, future potential?• Engagement tools:

http://www.partnerships.org.uk/guide/index.htm

• MAP WITH A PURPOSE!

The Place Station http://www.theplacestation.org.uk/

Take (pre-emptive) action

“They’ve closed our village pub how do we register it as a community asset and stop it from falling into the hands of developers?”

“We want to take over our town hall and turn it into a community centre and hub.”

The Pub?The Post Office?The Village Hall?The Corner Shop?The School?The Allotments?Your House?

Managing the list• LAs manage the local list of

‘assets of community value’ (ACV).

• Applies to public & private land.• Nominated by an eligible body.• LA has up to 8 weeks to decide.• LA must give notice to list to

owner, occupier, nominee (and parish council).

• Right of appeal for landowner.• If accepted, remains on list for 5

years.

PollAre all of the local assets of importance in your community listed?

•Yes•No•I’ve no idea

What is an Asset of Community Value?

Its main use currently, or recently, has been to “further the social well-being or social interests of the local community” and there is a likelihood that it could continue to do so.

Who can nominate?• Parish councils. • Neighbourhood Forums (as defined in

Neighbourhood Planning regs). • Unconstituted community groups of at

least 21 people on electoral roll.• Not-for-private-profit organisations (e.g.

charities).• …with a local connection.

How do you nominate?• By application to relevant LA.• Description of land and boundaries.• Known owners and occupiers.• Reasons why it is of community value.• Evidence of nominator’s eligibility.

Nomination stage is meant to be easy!

Some minor exclusions to listing

But the main one is residential housing.

Open to interpretation?• ‘Social well-being’ - not defined, but

in practice has been applied very widely.

• ‘Social interests’ - is defined, as: cultural, recreational or sporting interests.

• ‘Recent past’ – not defined, but propose at least 5 years.

Owner objections

• Internal (LA) review.• First Tier tribunal.

Chesham Arms Pub, Hackney, judge found that it is an asset of community value despite owner’s appeal. http://www.savethechesham.org/

The Moratorium (pause)• Triggered when owner wants to sell.• Freehold/25+ lease (vacant possession).• Owner must inform LA of their intention to sell.• LA informs updates the list and publishes moratorium dates. • Owner cannot conclude sale, other than to a ‘community

interest group’.

Moratorium periods

6 months in total

18 month ‘protected period’ where owner can sell again without delay

Who can express an interest at the

moratorium stage?• Can only be made by a

‘community interest group.’

• ie: a legally constituted organisation such as a charity, co. limited by guarantee (that does not distribute profits amongst its members), an Industrial and Provident Society, a Community Interest Company or a Parish Council.

• Business sold as a going concern.• Part-listed disposals (where land forms part of larger site, the remainder

of which is not listed).• Planning obligation, option or pre-emption right made before the asset

was listed.• Gifts to family members.• Statutory compulsory purchase.• Purpose of enabling NHS services to continue to be provided on the land.• For purposes of a school, a 16-19 academy or an institution within the

further education sector.

Moratorium exclusions

Part 3. Learning and insight

Progress – the big picture• Broadly welcomed - over 4,000 enquiries!• 774 nominations / 558 listed (72% success rate).• Huge breadth and variety of asset types.

• At least 150 pubs listed (half nominated by Parish councils). 36% Parish Councils taking action on RtB (DCLG survey 2013).

• Libraries, green space, sports facilities, football grounds, shops, churches, hospitals, town halls, barracks…and Greenham Common Control Tower!

Listings: A London & SE bias, so far

No. of listings:

•East: 250•South East: 91•South West: 86•London: 35

•West Mids: 34•Yorkshire & Humber: 27•East Midlands: 15•North West: 14•North East: 6

London & SE account for over just over 80% of successful listings to date

Council Region

No. of nominatio

nsNo. of

listings % ListedUttlesford District Council

East 270 187 69%Cornwall Council

South West 50 21 42%Winchester City Council

South East 16 16 100%Test Valley Borough Council

South East 14 14 100%Herefordshire County Council

West Midlands 14 14 100%Braintree District Council

East 10 10 100%West Somerset District Council

South West 10 10 100%Suffolk Coastal District Council

East 11 8 73%Arun District Council

South East 10 8 80%East Riding of Yorkshire Council

Yorkshire and Humber 7 7 100%

Leeds City Council Yorkshire and Humber 8 7 88%

Trends and issues• Recent past: Some assets of importance to communities

are unfortunately outside of scope.• Owner appeals: Very few to date. Have been decided in

the community’s favour.• Onerous processes: Some LAs have called for more info.

than strictly required for nomination, eg: proof of ability to purchase.

• 6 month window: Proves challenging when capital demands are high and lengthy negotiations with landowners/funders required.

Typically, communities also seek (and need) support with related capacity issues.

Do ACV listings affect planning decisions?

“It is open to the local planning authority to decide whether listing as an ACV is a material consideration if an application for change of use is submitted considering all the circumstances of the case.”

Community Right to Bid: Non-statutory advice note for local authorities, DCLG https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/14880/

Community_Right_to_Bid_-_Non-statutory_advice_note_for_local_authorities.pdf

Brent Council’s recent decision to refuse planning permission for the redevelopment of Kensal Rise Library.

The Ivy House Pub, Nunhead, London Borough of Southwark

The Ivy House pub was possibly the first place in the country to be listed as an asset of community value using the Community Right to Bid. And the fight to save this historic pub has paid off, with the pub being brought into community ownership in March 2013!

Step 1:Have an enterprising idea for

running a local asset or community project

Step 2: Make the case and galvanise

community support...

Step 5:Develop a share offer document

setting out why your community should invest

Step 6:Launch and promote share offer to attract investors

...

Step 3:To issue shares: register

community organisation as an Industrial Provident Society

...

Step 4:Set your funding target based on

your business case£700,000

The Bell Inn, Bath: Community Shares investment

Part 4. Help and support

The website

Stay in touchLinkedIn

Pinterest

Grants• Pre-feasibility grants - £5k to £10k.• Feasibility grants - £10k to £100k.• Eligible whether you use the right or

not.• Revenue only - consortia building,

training, expertise, business planning, market research, etc.

• Not intended for equipment, building costs or running costs.

• Capital (next year).

• Find out more about community asset projects: www.locality.org.uk/assets

• Take advantage of our Community Asset Mapping Platform: www.theplacestation.org.uk

• Obtain further information about the Community Rights: www.mycommunityrights.org.uk Tel: 0845 345 4564

• Follow our pilot work with private sector property professionals: www.localitybrokers.org.uk/

• Use our Whole Life Costing tool for communities: www.buildingcalculator.org.uk

Advice and support

PollHow much do you know about the Right to Bid…now?

A lotSome of the basicsVirtually nothing

More webinars coming up