6.Section 1(1) places a duty on the Scottish Ministers to prepare a community wealth building statement. Subsection (2) provides detail about the required content of that statement, providing that the statement must give information about things that the Scottish Ministers are doing, or will do, to reduce economic and wealth inequality and to help sustainable and inclusive economic growth in Scotland. Those actions should be aimed at ensuring that more wealth is created within local and regional areas, and that more of the wealth that is created in, or comes into, an area should stay in that area. This might mean, for example, taking actions that would make it easier for businesses to operate in their local areas. Sustainable and inclusive economic growth is to be in line with the United Nations sustainable development goals. These are defined, in section 13, by reference to section 98 of the Climate Change (Scotland) Act 2009, which in turn refers to the goals set out in “Transforming our world: the 2030 Agenda for sustainable development” adopted by the General Assembly of the United Nations by resolution A/Res/70/1 of 25 September 2015(2).
7.Subsection (3) sets out actions that the Scottish Ministers must include in the community wealth building statement. This list is non-exhaustive, and includes, at paragraph (i), any other measures that the Scottish Ministers consider appropriate. So the statement might include actions which are not included in this list. There is a power in subsection (6) for the Scottish Ministers to change, by regulations, the list of measures, by adding, removing, or amending any entries. Such regulations are subject to the affirmative procedure.
8.Subsection (4) provides that the statement must also set out steps that the Scottish Ministers will take to encourage and support certain bodies to take actions aimed at creating more employee-owned businesses and promoting the development of those businesses. This might be by supporting the creation of new businesses, or supporting the employee buy-out of existing businesses.
9.Subsection (5) sets out various actions the Scottish Ministers must take in preparing each statement. Paragraph (a) requires that they review existing policies and practice throughout the public sector in relation to both procurement and community empowerment. The review should cover matters which are set out in legislation and matters which are not, such as non-statutory codes of practice. The purpose of the review is to establish whether the goals of community wealth building, as set out in section 1(2), are enabled or supported by those policies and practices. Paragraph (b) further requires the Scottish Ministers to consider including as a measure within the community wealth building statement the making of changes to those policies or practices, including any changes to legislation, where the review finds that such changes could be made to better support the goals of community wealth building. Paragraph (c) requires the Scottish Ministers to take into account the just transition principles, set out in section 35C of the Climate Change (Scotland) Act 2009(3), in preparing the statement. This means that the measures set out in the statement should align with those principles where possible. The Scottish Ministers must publish a draft of the statement, under paragraph (d). They are also required to consult local authorities, representatives of the community, business, and social enterprises, and other persons that they think it is appropriate to consult, before the statement is finalised, under paragraph (e).
The Act Commentary on provisions Section 1 - community wealth building statement