Community Wealth Building and the Reassertion of Local Economic Power

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Scotland’s proposed Community Wealth Building legislation should be read not as a technical reform of local government practice, but as a quiet intervention in the geopolitical and economic settlement that has shaped the North Atlantic world since the late twentieth century. It arrives at a moment when assumptions about globalisation, capital mobility, and the neutrality of markets are being reassessed across Europe and beyond. In this context, the Bill represents an attempt to recover economic agency at the level of the state and the community without retreating into protectionism or nostalgia.

For several decades, economic development across the United Kingdom and much of the West followed a broadly convergent logic. Growth was expected to flow from attracting external capital, integrating into global supply chains, and minimising friction for mobile firms. Local institutions were repositioned as facilitators rather than shapers of economic life. The consequences of this model are now widely acknowledged: hollowed-out local economies, fragile supply chains, stagnant wages, and deepening territorial inequality. Community Wealth Building emerges as a response to this structural failure, not as a rejection of markets, but as a refusal to treat them as self-justifying.

The Scottish Bill formalises this response by embedding Community Wealth Building into the routine machinery of governance. It does so through process rather than command. Ministers would be required to articulate a national strategy, while local authorities and designated public bodies would be tasked with producing coordinated action plans. This architecture reflects an understanding that economic power is already widely distributed across public institutions, but rarely aligned. Procurement, employment, land management, and investment decisions are typically made in isolation. The legislation seeks to bring these decisions into a shared strategic frame.

The Five Pillars as Instruments of Sovereignty

At the centre of this frame are the five pillars of Community Wealth Building: spending, workforce, land and property, inclusive ownership, and finance. These pillars correspond directly to the points at which wealth either embeds itself locally or leaks outward. Public spending can anchor local supply chains or reinforce distant monopolies. Employment can stabilise communities or entrench precarity. Land can function as a productive commons or a speculative asset. Ownership can concentrate power or distribute it. Finance can circulate locally or exit at the first sign of volatility.

The Bill’s significance lies in treating these domains not as discrete policy areas, but as interdependent levers of economic sovereignty. This is a departure from the fragmented governance model that characterised late neoliberal public administration, in which efficiency was prized over coherence and coordination.

The Preston Model as Proof of Concept

This approach has a clear and often-cited precedent in the Preston Model developed in Lancashire. Following the collapse of a major inward investment project, Preston City Council and a group of anchor institutions reoriented their procurement and economic strategy toward local suppliers and inclusive ownership models. By coordinating spending decisions and nurturing local capacity, Preston demonstrated that local economies retain more agency than is commonly assumed.

The results were incremental rather than transformative, but they were measurable and durable. Procurement spend retained within the local and regional economy increased substantially, job quality improved, and confidence in local economic stewardship was restored. The lesson of Preston was not ideological but institutional: resilience is often built through aligned, routine decisions rather than grand economic interventions.

From Voluntary Practice to Statutory Expectation

Scotland’s proposed legislation draws on this experience while addressing one of its principal limitations. The Preston Model depended heavily on political continuity and local leadership. By placing Community Wealth Building on a statutory footing, the Scottish Government seeks to ensure durability beyond electoral cycles. This reflects a broader European trend toward embedding economic governance within legal and institutional frameworks rather than relying on discretion and goodwill.

In this respect, the Bill aligns more closely with continental traditions of social market governance than with the United Kingdom’s recent reliance on deregulated competition and capital mobility. It represents a subtle but meaningful shift in how economic legitimacy is constructed.

Geopolitics, Resilience, and Strategic Autonomy

The geopolitical implications of this shift should not be underestimated. In an era defined by fractured supply chains, sanctions regimes, and strategic competition, economic resilience has become inseparable from national and regional security. Shorter supply chains, diversified ownership, and locally rooted finance reduce exposure to external shocks. Community Wealth Building thus complements wider debates about strategic autonomy unfolding across Europe and among middle powers navigating an increasingly unstable global order.

Although sub-state in form, Scotland’s legislation participates in this reorientation by strengthening the internal foundations of economic resilience. It does not promise insulation from global forces, but it does offer a means of engagement that is less extractive and more adaptive.

Cultural Memory and Economic Stewardship

Culturally, the Bill resonates with long-standing Scottish debates over land, ownership, and democratic control. From land reform movements to community buyouts, there exists a deep political memory of extraction and dispossession. Community Wealth Building translates these concerns into contemporary administrative language. It offers a way to address structural imbalance without framing the issue as a moral repudiation of global capitalism.

Instead, the economy is treated as a system that can be shaped through institutional design and stewardship. This framing avoids both nostalgia and utopianism, positioning reform as a matter of governance rather than ideology.

A Quiet Recalibration

Critics argue that the legislation lacks enforcement mechanisms and risks becoming aspirational. Such critiques assume that economic change only follows dramatic intervention. Historical experience suggests otherwise. Durable change more often arises from the cumulative effect of aligned institutions acting consistently over time. By normalising local economic stewardship across public bodies, the Bill establishes the conditions for gradual but compounding transformation.

Seen in this light, Scotland’s Community Wealth Building law forms part of a broader recalibration underway across the Western political economy. It signals a move away from the assumption that prosperity must be imported, and toward the idea that it can be cultivated. In a period marked by uncertainty and realignment, this modest ambition may prove to be its most consequential feature.

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