Reforms are needed to improve community asset acquisition processes in Wales, to benefit the sustainability, wellbeing and resilience of rural communities

Dr Sarah Nason, Bangor University, and Dr Dani Hutcheon, Glasgow Caledonian University

Having property interests in community assets (including ownership, lease or other forms of control) can positively impact communities. Our recently published research ‘Rural Assets: Policy and Practice Insights from the Devolved Nations’, examined these issues, and the different policy and legal contexts, across the UK’s four nations, focusing on rural communities. The research was funded jointly by the Nuffield Foundation and British Academy as part of their Understanding Communities programme.

The need for reform is recognised, including by the Welsh Parliament Local Government and Housing Committee in its 2022 inquiry into Community Assets. Our research in Wales, provides evidence about how the processes of acquiring assets can empower rural Welsh communities and increase their resilience and wellbeing, but not without challenges.

Motivations for asset transfer

We focused on the transfer of publicly held assets, specifically land and buildings, to rural communities, though several findings also apply to the transfer of assets from private owners, and to asset transfers to urban communities. Across all UK nations, community acquisition of public assets is promoted at a policy and sometimes at a public authority level to strengthen local social and economic infrastructure and boost community sustainability. However, the primary purpose for public bodies, particularly local authorities, to dispose of assets is to raise funds from a sale or lease, to avoid the liabilities associated with holding property interests, and/or to reduce their costs by transferring the running of public services to communities. These cost-cutting reasons are in the shadow of austerity related cuts to local authority budgets, and such motivations were prevalent in Wales, raising wider questions about public services provision.

Rural Welsh communities and asset transfer

Our findings showed that key drivers for rural Welsh communities to acquire assets were to meet community needs that were not being met by local authority services, for control and ownership of local socio-economic development, to protect Welsh heritage and culture, and to protect and promote the Welsh language locally.

Going through the process of acquiring assets was found to empower rural communities in Wales by bringing people together, and revitalising understandings of common heritage and shared identity. Whether formally or informally, the process worked best with good community engagement and co-production, done well, this gives people a platform and voice to influence development and change locally. However, the process was also found to be dis-empowering, due to financial risks, uncertainty, complexity and bureaucracy.

Asset acquisition processes were found to have positive impacts on the resilience of rural communities in Wales, particularly by providing opportunities to save threatened public services, and/or to create imaginative new facilities meeting unique community needs. However, resilience was tested by overburdening the usually small number of volunteers leading projects, and the challenges of navigating processes that are can be long and arduous.

Our research showed that rural communities in Wales have seen their wellbeing impacted by community asset acquisition processes. Positively, by bringing people together for a common purpose, strengthening social bonds, re-energising communities and lifting their spirits. Negatively, due to complex and long processes leading to volunteer exhaustion and burnout, and the stress and worry about the future of assets, particularly when these are taken on defensively under threat of closure, rather than as a more positive choice.

National policy frameworks and guidance can be improved and the lack of legislation giving rights to communities and proper instruction to authorities is seen as a significant disadvantage

Whilst across all four nations varying degrees of bureaucracy and a lack of consistency in public authority processes was found to be a barrier to rural communities acquiring assets, in Wales the absence of a specific legislative framework empowering communities through rights to asset transfers, or to bid for or acquire assets, was seen as a significant disadvantage. Without a proper framework, local authority process in Wales was found to be incoherent with varying practice and support for community asset transfer across authorities. Authorities themselves felt restricted in their ability to effectively engage in processes due to a lack of training, time and resources in a context of ongoing austerity related budget cuts.

In other nations, particularly in Scotland through its Community Empowerment Act, there are clearer legal rights for communities, and stronger processes that can include presumptions of community acquisition, and appeal rights for all parties. Such legal rights were also found to provide greater transparency and led to improved communication between communities and public authorities. Amongst the four UK nations, Wales is the furthest behind in terms of developing a clear and well-communicated, national policy framework and strong guidance for community asset acquisition.

Our recommendations for Wales

Welsh Government should develop and communicate a new national framework for community asset acquisition that is consistent with other policy objectives around sustainability, wellbeing, and land use. This should at least include updating and improving existing guidance provided by Ystadau Cymru.

Local authorities in Wales:

·        must have community asset transfer policies in place, and stronger compliance duties could be considered to ensure these are followed;

·        need more resource support and better training so that asset transfer polices are fully engaged with and embedded in everyday practice.

Rural communities in Wales:

·        would be supported by introducing strategic capital funding specific to community asset acquisition;

·        require policy support that considers the rural context and improves access to funding;

·        need more help for local groups to improve their skills and capacity to take on public assets.