1. Anton Schultz Development Manager Locality Assets, Services and the Community Rights

2. 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

3. New Community Rights BUILD BID CHALLENGE NEIGHBOURHOOD PLANNING

4. BUILD Community Right to Build small scale, site-specific developments without planning permission

5. WHY COMMUNITY ASSETS?

6. Generate Local Wealth

7. Pride in Place The character of a place is found in the distinctive qualities of its landscape, cultures, and built environment.

8. Communities taking responsibility - empowerment

9. Profitability and earned income in community sector organisations categorised by those without an asset

10. 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

11. Base for Local Service Provision

12. New Partnerships

13. The Cost of Doing Nothing?

14. 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

15. Assets of Community Value BID

16. List of assets of community value The Pub? The Post Office? The Village Hall? The Corner Shop? The School? The Allotments? BID

17. The Pub? The Post Office? The Village Hall? The Corner Shop? The School? The Allotments? 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 BID

18. 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 BID 558 Assets Listed as of October 2013

19. 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 BID

20. Exemptions If disposal is a gift Disposal between members of family If part of bigger estate If a going concern business is operating (providing that sale will result in the business continuing)  BID

21. 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

22. Right to Bid and Asset Transfer Right to BidAsset Transfer BasisStatutoryPolicy encouragement Type of assetCommunity valueAny publicly owned asset OwnershipAny ownerPublic sector ProcessDefined in Localism ActBy negotiation ValueMarket valueUsually at an undervalue TermsMust be freehold or lease of 25+ years By negotiation Mechanisms are not mutually exclusive

23. 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

24. 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

25. 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

26. Funding for Asset Acquisition Social Investment Business www.sibgroup.org.uk 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… BID

27. 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.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.buildingcalculator.org.uk www.localitybrokers.org.uk:partners property professionals with aspirational community enterprises to transform land and buildings for local benefit.www.localitybrokers.org.uk

28. CASE STUDIES

29. Interlink Resource Centre Broughton, Salford

30. Newstead Vocational Centre Knowsley

31. Denton West End Community Library

32. Go-Lo Eco-Lodge, Bollington

33. Springhead Community Centre Oldham

34. The Star Inn in Salford was bought by its regulars in October 2009 It became Britain's first urban co-operatively owned pub

35. FC United Community Share scheme raising money to build the stadium and community facilities in Moston. around 1400 people raising £1.74m

37. SERVICES – THE RIGHT TO CHALLENGE

38. CHALLENGE Community Right to Challenge challenge and take over a council service they think can be better run

39. Background Part of the Localism Act Changing the way public services are delivered –more choice, decentralised, fair & accountable Social Value Act - duty to consider social, economic and environmental wellbeing when commissioning Best Value – duty to consult when commissioning – actively engaging with community groups and users CHALLENGE

40. 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

41. 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

42. How is the challenge made? The relevant body submits an expression of interest (EOI) to the relevant authority CHALLENGE

43. 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

44. Permanently Excluded Services Individual packages of services for continuing health and social care for named individuals with complex needs, provided/commissioned by a local authority or NHS body (or jointly).

45. Excluded until 1 st April 2014 Services commissioned by a relevant authority or NHS body, in conjunction with one or more health services, or by an NHS body acting on behalf of a relevant authority. Services which are commissioned and managed by individuals or their representatives using direct payments.

46. The Challenge process 1.Local authority specifies how and when EOIs can be submitted – otherwise submitted at anytime 2.Relevant body submits EOI. - Must make a sound business case and show how they could deliver or contribute to delivery of a service, better 3.Local authority accepts, rejects, or passes back for amendment - c an only pass back if they would otherwise reject 4.If accepted, pause before procurement starts CHALLENGE

47. The Challenge process CHALLENGE March – April 2013 Service delivery starts Procurement procedure starts EOI window Accepted within 5 months September 2013 March 2014 September 2014 typical example… 18 months?

48. 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

49. 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” CHALLENGE 22 Expressions of Interest Submitted at Oct 2013 One accepted

50. Issues What is the market? - Local Authority budgets cut Smaller contracts – uneconomical? Opening the door for others – private sector? Potential for creating conflict with LA Contradictory policy (Localism vs Gershon) Inappropriate windows for EOI Requirement to provide information Changing the shape of contracts after EOI CHALLENGE

51. Opportunities Encourages ‘local thinking’ Co-design of services Breaking down contract size A catalyst for voluntary & community sector collaboration CHALLENGE

52. 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… CHALLENGE

53. www.contractreadinesschecker.org.uk provides a quick overview of the capability and potential of your organisation highlighting the relative strengths and weaknesses

54. www.locality.org.uk www.mycommunityrights.co.uk 0845 458 8336 Anton.schultz@locality.org.uk

55. DISCUSSION

56. Comments and questions Your experiences of asset management / public service delivery Current opportunities / considerations

57. Asset Challenges Understanding costs and viability Getting the right terms The right finance TUPE

58. Service Challenges Scale Collaboration TUPE Mutuals