How can the Right to Bid benefit your community? Slides from the Locality webinar 'An Introduction to the Community Right to Bid' on 30 Oct 13.

1. Community Right to Bid
Stephen Rolph
Development Manager

2. What’s coming up
1) Background – political and community
context
2) Detail – what is it, why use it, how to use it
3) Learning – what we know so far, issues and
trends
4) Help and support – inspiration, networks,
resources, grants

3. Poll
How much do you know about the Right to
Bid?
A lot
Some of the basics
Virtually nothing

4. The drivers

5. Localism and Decentralisation
Localism
Decentralisation
Doing everything at the lowest possible level and
only involving central government if absolutely
necessary
Giving away power to individuals, professionals,
communities and local institutions

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

7. Key government policy
• 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, takewhat-you-are-given model of public services.”
• Localism Act (2011)
• March 2012 & May 2013 Open Public Services updates.

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

9. New rights and powers for
communities and individuals
• 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.

10. Community Right to Bid
(Assets of Community Value)
• 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.

11. Driver 2. Community asset ownership
grant funding
assets
enterprise
• 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.u

12. Pioneers of the movement: Coin Street
Community Builders

13. The new practioneers 1: Hudswell
Community Pub
Ingredients
Local residents
Passion, resilience, belief, and
patience…and investment
Finance
Community Shares (residents)
Grants (RDA, Locality, others)
Loan/Equity (Key Fund)
Advice
Co-ops UK (community shares)
Locality & others (business planning)

14. The new practioneers 2. Hastings
Pier and White Rock Trust
Ingredients
Engagement Rules
Build membership, mobilise
networks, listen actively and openly,
take risks
Local residents
Passion, politics, campaigns,
resilience, belief, patience……and
investment
Community Share issue

15. • …informing the public

16. ‘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

17. Community asset acquisition – more
than one tool in the box!
Empowering Communities:
Making the Most of Local
Assets
http://tinyurl.com/9kfc8xl
• 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.

18. Right to Bid vs Asset Transfer
Right to Bid
Asset Transfer
Basis
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

20. Part 2. The Right to Bid – the detail

21. The process…step by step…
STEP 1:
Get informed, get organised,
get mapping
STEP 4:
If asset sold, up to 6 months
to raise funds to bid to buy
STEP 3:
Local Authority
accepts/rejects nomination
...
www.mycommunityrights.org.uk
www.theplacestation.org.uk
STEP 2:
Get 21 people together and
nominate the asset
...
STEP 5:
Finance, (Community
Shares?)
STEP 6:
Asset is brought into
community control
www.communityshares.org.uk
...
...
...

22. 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!

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

24. Take (pre-emptive) action
“We want to take over our
town hall and turn it into a
community centre and hub.”
“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?”

25. 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.
The Pub?
The Post Office?
The Village Hall?
The Corner Shop?
The School?
The Allotments?
Your House?

26. Poll
Are all of the local assets of importance in your community
listed?
•Yes
•No
•I’ve no idea

27. 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.

28. 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.

29. 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!

30. Some minor exclusions to
listing
But the main one is
residential housing.

31. 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.

32. 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/

33. 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’.

34. Moratorium periods
6 months in total
18 month ‘protected period’ where owner can sell again without delay

35. 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.

36. Moratorium exclusions
• 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.

38. Part 3. Learning and insight

39. 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!

40. 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

41. Council
Uttlesford District Council
Region
No. of
listings
% Listed
270
187
69%
South West
50
21
42%
South East
16
16
100%
South East
14
14
100%
West Midlands
14
14
100%
East
10
10
100%
South West
Cornwall Council
East
No. of
nominations
10
10
100%
East
11
8
73%
South East
10
8
80%
Yorkshire and Humber
7
7
100%
Yorkshire and Humber
8
7
88%
Winchester City Council
Test Valley Borough Council
Herefordshire County Council
Braintree District Council
West Somerset District Council
Suffolk Coastal District Council
Arun District Council
East Riding of Yorkshire Council
Leeds City Council

42. 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.

43. 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_-_Nonstatutory_advice_note_for_local_authorities.pdf
Brent Council’s recent decision to refuse planning
permission for the redevelopment of Kensal Rise
Library.

44. 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!

45. The Bell Inn, Bath: Community Shares
investment
Step 1:
Have an enterprising idea for
running a local asset or
community project
Step 2:
Make the case and galvanise
community support
...
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
Step 5:
Develop a share offer document
setting out why your
community should invest
Step 6:
Launch and promote share
offer to attract investors
...

47. Part 4. Help and support

48. The website

49. Stay in touch
LinkedIn
Pinterest

50. 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).

51. Advice and support
• 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

52. Poll
How much do you know about the Right to
Bid…now?
A lot
Some of the basics
Virtually nothing

54. More webinars coming up