The government has announced a £61m package to support local communities looking to exercise the right to buy local assets, which was passed by MPs in April.
Part of Labour’s Pride in Place initiative the fund was announced by communities secretary Steve Reed yesterday as part of a package of measures, building on wider reforms in the English Devolution and Community Empowerment Act to allow people to take over community assets.
This funding is part of the £301m announced by the government to support high streets and community spaces.
Reed also made commitments on tackling profiteering in the temporary accommodation and the children’s social care sector, alongside making it easier for social housing tenants to take control over their homes.
“I am pushing power out of Whitehall and into the hands of the people who actually use these high streets,” said Reed. “They know what they need better than any politician in Whitehall.
“We’re backing communities to step in and save these high street gems, building on our drive to give communities the key to their own future and power over what matters to them.”
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Welcoming the news in a post on LinkedIn, Co-operatives UK said: “Alongside our partners including Locality, Power to Change and Plunkett UK, we’ve consistently called for this new right to be backed by practical development support and access to finance.
“The reason is simple. A legal right is only meaningful if communities have the resources, expertise and funding to use it.
“The £61m package is expected to include around £51m to help communities buy assets, alongside £10m in capacity support. Both elements are critical.
“Co-operatives and community benefit societies are already a vital part of the community ownership landscape. So it is essential that this support works with the grain of co-operative finance, including community shares.”
The apex added: “There is a strong case for part of the fund to be invested as match-equity through the Community Shares Booster Fund, allowing some public money to earn a return and be recycled into community ownership projects for generations to come.
“Development support must also help communities explore and adopt co-operative models where appropriate. We’re proposing that the Co-operative Development Unit, under the Pride in Place Strategy, includes a £7.2m programme for co-operative development as part of the wider Community Right to Buy support package.
“We now hope to work with the MHCLG to help fit these pieces together so that Community Right to Buy can create lasting community ownership and benefit.”
In his speech, Reed also announced plans to streamline the right to manage for social housing tenants, with reforms including stronger enforcement action where serious mismanagement puts residents’ safety at risk.
Meanwhile, a £10m Test, Learn and Grow fund will “empower frontline staff and local places to respond to what users need”. And Community Power Pilots will bring £15m in funding to 25 areas to “transform services for residents with their input”.
