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Assets, Services and the Community Rights. Anton Schultz Development Manager Locality. Localism Act. I ntended to devolve power from central government to individuals, communities and local councils Increased power and autonomy for Local Authorities
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Assets, Services and the Community Rights Anton Schultz Development Manager Locality
Localism Act • Intended to devolve power from central government to individuals, communities and local councils • Increased power and autonomy for Local Authorities • Specific powers / rights for communities
New Community Rights BUILD BID NEIGHBOURHOOD PLANNING CHALLENGE
Community Right to Build BUILD small scale, site-specific developments without planning permission
Pride in Place The character of a place is found in the distinctive qualities of its landscape, cultures, and built environment.
Profitability and earned income in community sector organisations categorised by those without an asset
Profitability and earned income of community sector organisations categorised by those with an asset This shows that community trusts with an asset tend either to have margins of 10% to 40% or significant losses whilst earned income is typically around 20%plus This diagram also illustrates the higher risk associated with owning and managing an asset
BID Right to Bid (Assets of Community Value) “aims to ensure that buildings and amenities can be kept in public use and remain an integral part of community life”
BID Assets of Community Value
BID List of assets of community value The Pub? The Post Office? The Village Hall? The Corner Shop? The School? The Allotments?
BID Assembling an assets list • LAs to list assets of ‘community value’ • Public, private, and VCS owned • Nominated by Parish Council, community council, or a locally connected voluntary or community body • LA must inform owner and nominee • Right of appeal for landowner • 5 year listing The Pub? The Post Office? The Village Hall? The Corner Shop? The School? The Allotments?
BID What is Community Value? Must further the social well-being or cultural, recreational or sporting interests of the local community This must be its principal use 558 Assets Listed as of October 2013
BID Moratorium Period • Triggered when owner wants to sell • Prevents owner concluding sale • 6 weeks for community group to notify LA they wish to bid • 6 months to raise capital to purchase • Followed by a protected period – 18 months: to protect owner from repeated attempts to block sale
Transfer of management / ownership from public body to communities General Disposal Consent 2003. Permits local authorities to transfer land at less than its market value provided that: it is likely to contribute to the “promotion or improvement” of the economic, social, or environmental well-being of the area; and the difference between the market value and the actual price paid for the disposal is not more than £2,000,000. Asset Transfer
Right to Bid and Asset Transfer Mechanisms are not mutually exclusive
Drivers for Change • Local Authority Asset Rationalisation • Treasury have been calling for 20% reduction in public asset ownership by 2020 • Revenue Savings for LA (consolidating into cheaper efficient accommodation) • Service Synergy / Collocation • Flexible and Mobile working • More diverse supplier base
Management arrangements Meanwhile Space Short term lease transfer Long term lease transfer Freehold transfer Freehold purchase Community Asset Acquisition Increasing: Autonomy Risk Impact Opportunity Capacity required Balance sheet
Be sure about your responsibilities • Insurance • Repair and maintenance • Decoration • Alterations • Owner’s costs and rights; • Reviews; break-clauses? • Sub leasing • Covenants and use restrictions
BID Funding for Asset Acquisition • Social Investment Business www.sibgroup.org.uk (Community Ownership & Management of Assets programme) • Pre-feasibility grants of £5k to £10k • Feasibility grants of £10k to £100k • Capacity building, training, expertise, business planning, viability testing, market research…
Useful asset resources • To Have and to Hold: guide to long-term community ownership and development of land and buildings (from www.locality.org.uk) • www.buildingcalculator.org.uk: helps assess the future costs of the building you own or are considering taking on – including its repair, maintenance and other operating requirements. • www.localitybrokers.org.uk:partners property professionals with aspirational community enterprises to transform land and buildings for local benefit.
Community Right to Challenge CHALLENGE challenge and take over a council service they think can be better run
CHALLENGE Who can use the Right to Challenge? • voluntary and community bodies • charities • parish and town councils • 2 or more employees of the Local Authority involved in that service - these are called ‘relevant bodies’
CHALLENGE Which authorities can be challenged? • local authorities • County councils • District councils • London borough councils • certain fire and rescue authorities - possibly others in the future - these are called ‘relevant authorities’
CHALLENGE How is the challenge made? The relevant body submits an expression of interest(EOI) to the relevant authority
CHALLENGE Which services does Challenge apply to? All services provided by, or on behalf of, a relevant authority are defined as ‘relevant services’ - unless they are expressly excluded!
CHALLENGE The Challenge process • Local authority specifies how and when EOIs can be submitted – otherwise submitted at anytime • Relevant body submits EOI. - Must make a sound business case and show how they could deliver or contribute to delivery of a service, better • Local authority accepts, rejects, or passes back for amendment - can only pass back if they would otherwise reject • If accepted, pause before procurement starts
CHALLENGE Why can a Challenge be rejected? Service reasons • services for vulnerable people with highly complex needs • services jointly commissioned with the NHS • plans would lead to breach of statutory duty or law Transformation reasons - Decision already made to • cease providing the service • contract out the service • negotiate a spin-out with staff • must be a formal, documented decision
CHALLENGE Why can a Challenge be rejected? Subjective reasons • EOI is “frivolous or vexatious” • Relevant body lacks the capacity (inc consortia member) • Detail of plans are “inadequate or inaccurate” • 22 Expressions of Interest Submitted at Oct 2013 • One accepted
CHALLENGE Opportunities • Encourages ‘local thinking’ • Co-design of services • Breaking down contract size • A catalyst for voluntary & community sector collaboration
CHALLENGE Funding for CRtChallenge • Social Investment Business (Community Right to Challenge programme) • Pre-feasibility grants of £5k to £10k • Feasibility grants of £10k to £100k • can apply for 50% or 30% of contract costs (depends if under or over £30k) • intended for consortia building, training, expertise, business planning, market research…
www.contractreadinesschecker.org.uk • provides a quick overview of the capability and potential of your organisation highlighting the relative strengths and weaknesses
www.locality.org.uk www.mycommunityrights.co.uk 0845 458 8336 Anton.schultz@locality.org.uk
Comments and questions • Your experiences of asset management / public service delivery • Current opportunities / considerations