Community Asset Transfer (CAT) Al Bell al.bell@communitymatters.org.uk

What is CAT? Asset transfer is a shift in management and/or ownership of land or buildings, from public bodies to communities Most often, but not solely, from local authorities to community and voluntary sector groups, community enterprises, social enterprises, etc.

Types of transfer Rental or management agreement Licence Lease Long term lease c25 years Full repairing lease Freehold

History of CAT Many authorities were doing AT pre-Quirk The 2006 White Paper, Strong and Prosperous Communities 2007 Quirk Review “Making assets work” 2007 government response to Quirk “Opening the transfer window” 2007 Empowerment Action Plan 2007 Community Assets Programme OCS/BLF 2007 – 11 Advancing Assets (AA) programme 2008 'Communities in Control: Real People, Real Power 2009 Asset Transfer Unit www.atu.org.uk

And that the undervalue does not exceed £2m Myth busters Disposal at an undervalue General Disposal Consent 2003 allows transfer without permission from Sec State as long as the land disposal contributes to the “promotion or improvement” of the economic, social or environmental well being of the area And that the undervalue does not exceed £2m

Myth busters State Aid requires all 4 of following in order to apply: Aid granted by a Member State or through State resources Favours certain undertakings or the production of certain goods A distortion (or threat of distortion) of competition and An effect on trade between member states. Also de-minimis current limit is 200,000 Euros over a 3 year rolling period. generally accepted that there is not a competitive market across Europe for bodies providing “not for profit” services to meet the needs of their local communities

Current context Decentralisation, localism and big society Localism Act; community right to buy and challenge, local referendums, reclaim unused land and buildings. Deficit reduction plans likely increase number and speed of transfers but with a reduction in support Modernising Commissioning; mutuals, cooperatives, charities and social enterprises to play bigger part in running public services Waiving of government ‘clawback rights’ More transparency in public data Social value Public services bill; social value in all procurement

the over-riding goal is community empowerment.” CAT drivers “The starting point is the recognition that optimising the use of public assets is not the primary objective: the over-riding goal is community empowerment.” Making Assets Work, the Government’s Efficiency Champion, Barry Quirk

The opportunity Deliver better services to meet, and continually respond to, the needs of the community Improved value-for-money Income generation and reduced grant dependency Secure external funding and loan finance Increased independence Co-production  

Do you REALLY want a building? Success factors Do you REALLY want a building?

Success factors Asset or liability? Age and condition of the building Listed building? Location – safety, convenience, footfall, local transport, infrastructure Plans for the redevelopment of the area Proximity to local housing (noise nuisance)

Success factors Organisation Strong board and good governance Ability to hold an asset CC33 - Legal identity, Ltd Co, CIC etc Pre-visible visiblecommunities.org.uk Business plan Building costs and likely incomes Maintenance costs, conditions survey Community need and benefit Relationships Good relationships with officers and elected members

Examples Stourport – total assets pilot Wolverhampton – assets info pack Sandwell – 5 lease year to freehold Worcester– SPV of merged com orgs Camden – bulk transfer to CVS Multiple asset pilots – Torbay and South Tyneside

Further information Community Matters Free Advice Service www.communtymatters.org.uk/support or phone 08454 847 4253 Monday, Wednesday and Friday mornings and www.communitymatters.org.uk/onlineguidance Asset Transfer Unit (ATU) www.atu.org.uk Richard Bridge, Head of Consultancy, Training and Quality, richard.bridge@communitymatters.org.uk or phone 0207 837 7887 al.bell@communitymatters.org.uk