A World First: Community Wealth Building legislation in Scotland
By Neil McInroy
March 28, 2025
A Community Wealth Building Bill has now been published by the Scottish Government. The Community Wealth Building (Scotland) ACT 2026 will be the first piece of national legislation anywhere in the world, representing a significant feat for the growing CWB movement. TDC’s Neil McInroy tells of his role in this landmark legislative milestone, and shares his views on what will come next.
Over the last five years, I have been involved in the development of Community Wealth Building (CWB) in Scotland, having been seconded part time into the Scottish government from 2020-2023 as a CWB adviser, where I helped to develop on-the-ground practice in a number of local council areas, build awareness and networks, and assisted in the development of policy. I also chair the Economic Development Association of Scotland (EDAS), which runs a CWB Centre for Excellence. Over that time we have seen a considerable maturing of the Community Wealth Building agenda in Scotland.
Notably, my design of the CWB Five Pillar Model and action planning process trailed in Scotland has been adopted by a number of local councils, community and regional public bodies, and anchor organizations. Furthermore, ‘Community Wealth’ is now a term and concept used in business and in mainstream local place-based and community economic development more generally. All of which is testament to a growing and successful mobilization.
“The CWB agenda in Scotland might be growing, but incoming legislation will solidify gains and ensure that activity is not done in isolation, but comprehensively, helping Scotland go further in creating a dynamic economy, where more wealth can be generated, circulated, and retained for the benefit of all Scots.”
The CWB agenda in Scotland might be growing, but incoming legislation will solidify gains and ensure that activity is not done in isolation, but comprehensively, helping Scotland go further in creating a dynamic economy, where more wealth can be generated, circulated, and retained for the benefit of all Scots.
An unequal economy
Scotland needs Community Wealth Building.
The wealth distribution in Scotland is hugely uneven, with the top 10% owning 200 times more wealth than the bottom 10% (median wealth of £1.3m compared to £6,000). Indeed 25% of Scottish people have less than $500 of net savings, and 7% of those with zero savings are in debt.
Alongside the need to tackle the climate and cost of living crises, Community Wealth Building is very much at the heart of Scotland’s plans for economic system change and the building of a more economically and socially just nation.
As the Community Wealth Building Bill states, Scotland sees CWB as a key practical means to realize the Scottish Government’s Economy vision of “a society that is thriving across economic, social and environmental dimensions, one that delivers prosperity for all Scotland’s people and places”.
In this context, CWB acts as a strategic framework for system change that “can amplify impact and create a lasting transformation in how Scotland’s economy operates, ensuring the benefits are realised across our local areas and regions, and by future generations.”
“Any CWB legislation needs to be mindful, balancing bespoke local contextual practice and pathways of the ‘here and now’, whilst still creating legislative guiderails and stipulations for deeper and aspirational economic system change.”
Any CWB legislation needs to be mindful, balancing bespoke local contextual practice and pathways of the ‘here and now’, whilst still creating legislative guiderails and stipulations for deeper and more aspirational economic system change.
Striking the right balance
Seeking to strike this important balance, the Community Wealth Building Bill will legislate in three key ways:
Firstly, the Scottish Government is legislating itself. In other words, it must publish a statement, announcing what they intend to do across a range of elements relating to the Five Pillar Model of CWB. It must report on progress in regards to their intent on “facilitating and supporting the generation, circulation and retention of wealth in local and regional economies”. This in essence enshrines CWB as a key part of Scotland’s economic landscape, now and into the future, as far as government action and delivery is concerned.
Secondly, the Bill ensures that all local authorities and relevant public bodies must produce a CWB action plan. These action plans will set out the specific measures each area needs to take in supporting the generation, circulation, and retention of wealth in the local economy.
Thirdly, the Bill stipulates that the government must issue guidance on CWB, and a range of public bodies must make due regard to this in their corporate plans and delivery strategies. This means that these public bodies will be legally recognizing Community Wealth Building and their role as economic agents for change in their activities and work.
Looking at process and the Scottish parliamentary timetable, we can expect Stage 1 (committee scrutiny) to be undertaken by Autumn 2025, and subject to parliament scrutiny (Stages 2 and 3) in early 2026. Legislation should then be passed before the end of this parliament in June 2026.
We are thus at a significant moment in the unfolding of Scotland’s Community Wealth Building journey. Scotland now stands at the tip of the spear globally with the introduction of national CWB legislation — a world first!
Myself and The Democracy Collaborative look forward to ongoing engagement, and will follow the parliamentary process with interest — not least as we evaluate how important lessons learned from Scottish experience can be transmitted and replicated in other places across the globe.