Community asset transfer (CAT) and devolution of service delivery - - PowerPoint PPT Presentation

Community asset transfer (CAT) and devolution of service delivery in Wales

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Prepared by Community Matters : The National Federation of Community Organisations

Welcome

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Introductions House Keeping The way we will work together Handouts

The National Federation of Community Organisations est. 1945

• 853 Members including:
• 749 community organisations
• 57 Local Federations of Community

Organisations and other local supporting organisations

• 47 Local Authorities and Housing

Associations

• Reach : 4.500 + organisations via our

e bulletin

• 96% manage a community building
• 56% of buildings owned by LA
• 25% under £15K turnover
• Average of £80K turnover
• Just over half employ staff

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Community Matters Services

• Free Advice service (phone and email)
• Legal and Accountancy Clinic
• Extensive Online information and

guidance sheets, specimen policies and procedures and model documents covering, for example, governance, strategic leadership, financial management, managing an asset, and managing volunteers and employees

• The VISIBLE

TM Quality Standards and

the PreVISIBLE tool

• Your Value – our social impact tool
• A full bespoke consultancy and training

service

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Role of Community Matters

• Advocate and lead on policy for both national and local government

concerning the community sector, community empowerment, CAT, and preparing for commissioning.

• Delivery Partner in national programmes including currently the My

Community Rights programme and the new Our Place scheme.

• Long experience of supporting COs and LAs in negotiation of long leases

and successful CATs

• Team of expert consultants in field of asset management, business

planning, legal and financial issues, governance, and community empowerment and engagement.

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The term ‘Community Asset Transfer’ is defined as ‘where the Council transfers land

• r buildings into the ownership or

management of a Voluntary and/or Community Sector organisation or social enterprise’’.

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What is CAT

Most usual model for asset transfer?

Usually for less than market value

• 1. Freehold transfer
• 2. Long Lease – 25+ years

For Community Asset Transfer options 1 and 2 are the normal expectations

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Other forms of asset transfer

• 3. Short term lease e.g. 10 years
• 4. A very short term lease – 2-3 years
• 5. An annual licence

Option 3 may be used e.g. where the building has a short life. Options 4 and 5. Are sometimes used when either party has identified major risks or wants to take an incremental approach and does not want to over commit initially.

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Not a format for asset transfer

A Service Level Agreement (SLA)

• r Management agreement is

not a right to occupy, although it may be a useful adjunct to an

• ccupation

Clauses to watch out for within leases

• Landlord and Tenant Act 1954
• Break clause

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Asset lock

Freehold transfers or long leases will contain an ‘asset-lock’ - clauses that prevent the asset being assigned or sold on for unintended financial gain and the loss of any agreed community benefits

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Claw back and disposal of agricultural land and change of use

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• Claw back applies to freehold transfers
• The claw-back principle can be applied to enable a

selling owner to bind the buyer and other future

• wners to pay overage if the land becomes more

valuable as a result of a new use arising from the grant

• f a future planning permission
• Disposal of agricultural land and change of use-

Usually applies for more commercially based disposals

Formats for asset transfer

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Using CAT handout let us consider the various formats – strengths, weakness and risks If you had the your choice which one would you prefer for your community? Why?

Myth busters

• Disposal at an undervalue
• State Aid –applies to both CAT and

service contracts

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The case for local devolution

Offer the prospect of:

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Better quality,' joined-up' forms of service delivery based on community priorities.



Local authority main programmes and budgets are better targeted at community needs and priorities.

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A territorial focus for crosscutting measures, which emphasise

• utcomes for citizens.



the opportunity for enhanced community participation and partnerships with local authorities.

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Local authority approach to devolution of services

• Project-specific approaches. Good first approach. The

quickest and easiest way of securing community engagement e.g. small environment projects or play areas.

• Thematic – e.g. crime and disorder, education, the

environment, and housing management

• Area-based – wide range of policy areas and service

delivery

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Models for Service Devolution

 Budget comes with the transfer of service.  Total cut in service unless community council take it on.  Partnerships – co-design/co- production.  Do you know of/can you think of any services that might be effected by this?

• Handout. Models for

devolution of services

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Using the handout let us consider the various formats:

• Strengths, opportunities, weakness and risks.
• Is there anything else you would like to add?
• If you had the your choice which one would

you prefer for your community? Why?

Background for asset transfer and service devolution

 Cuts to local authority funding.  Having to do more, better, for less.  Public assets which have become liabilities.  Difficult decisions re cuts in service delivery – some

• nly providing what they must because of the

budget cuts  A cost to the community in terms of blight, lost services and lost opportunities

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Policy drivers for CAT and devolution of services

• 2003 Welsh assembly gives green light

for greater asset transfer to communities

• Commitment reconfirmed in 2009 –

Social Enterprise Action Plan

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Policy drivers for CAT and devolution of services

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• Local Government Act 2000:
• Drew attention to the role of local authorities

as community leaders

• Introduced the wide ranging power for L.A.s

to “do anything which they consider is likely to achieve” the promotion of economic, social and environmental well-being of their area to achieve sustainable development

Policy drivers for CAT and devolution of services

• Local Govt (Wales) Measure 2011 put community councils on

the same footing as Local Authorities re the power of well being.

• Welsh govt. set a financial limit re power of well being under

section 137 Local Govt Act.

• Based on electorate number multiplied by set amount –

changing annually. April 2014 £7.20

• Note - Williams Commission report advocating reduction in

number of local authorities and amalgamation of community councils in Wales

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Policy drivers for CAT and devolution of services

• December 2003
• Rules relaxed re power to transfer an asset at less

than market value.

• Requirement to gain specific consent of the National

Assembly for Wales no longer required where undervalue is less than £2m

• BUT local authority has to be satisfied this will help

secure “promotion or improvement of the economic, social or environmental well-being of the area”

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Policy drivers for CAT and devolution of services

Local Democracy, Economic Development and Construction Act 2009:

• give local authorities more power and freedom to respond to local

needs

• a duty on local councils to promote democracy - putting local

authorities at the forefront of the drive to reconnect people with public and political decision-making.

• empowering citizens and communities to become involved in the

design and delivery of local public services and improving their communities

• new rights for the citizen to have more information and influence
• ver the local decisions
• new powers to hold politicians and officials to account

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Policy drivers for CAT and devolution of services

• Wales Programme for Improvement (WPI) 2002 and

reformed through the Local Government (Wales) Measure 2009.

• Local authorities are being encouraged to develop a

corporate, strategic approach to service delivery and the use of resources. This could include an asset management strategy and a procurement strategy, both set within the overall vision for the area (the Community Strategy).

The opportunity

 There is a need to balance the cost of the service or value of the asset to the local authority in pure £’s with the value it does/could bring to the community  Move towards local delivery and control of services

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The opportunity

 Local people can have a greater say and play a part.  Empowers local communities  Puts local organisations in control  Encourages pride of place  Generates wealth in our communities

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The opportunity

• Local organisations often best placed to manage

services and facilities in their local communities

• It empowers local communities, puts local
• rganisations in control, encourages pride of place
• Deliver better services to specifically meet the

needs of the community

• Local knowledge, use of volunteers and hands-on

management contributes towards community empowerment

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The potential outcomes

• Better service to meet the needs of the

community

• Community engage because it is THEIR

community – it impacts on their lives

• Sense of ownership power, control and

commitment therefore willingness to take part

• Lower overheads and better value-for-money
• More intensive use of any asset.

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Requires innovation

• Reality check - Change can be frightening but

change is happening whether we like it or not and assets and services are threatened

• Innovation required – being prepared to at

least consider doing things differently

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Requires innovation

• Are you prepared to
• Review current practices?
• Take on the barriers and challenges?
• Create a new vision with and for your

community?

• Take your community with you on a new

journey?

• Lead the field and make the vision a reality?

• Policy drivers include The Power to promote or improve

Economic, Social or Environmental Well-Being  Can you meet any criteria set for the transfer of an asset

• r a service?

 Governance arrangements and policies and procedures fit for purpose?  Demonstrate professional management e.g. Clerks to CiLCA standard?  Quality Assurance? VISIBLE. PreVISIBLE. PQASSO and

• thers.

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Can you?

Should you?

• Risk management.
• Are you risk aware as opposed to risk

averse?

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Risk Management

• Barry Quirk Review of Community Management And

Ownership Of Public Assets

• “there are no substantive impediments to the transfer of

public assets to communities, the risks can be minimised and managed – secret is all parties working together; this needs political will, managerial imagination and a business-focused approach from both public and community sectors

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Common identified risks for asset transfer and devolution

• f services.
• Viability or liability?

 Due diligence.  What are the financial risks?  What other risks are there? TUPE?

Common identified risks

• What are the benefits to both the community

council and local people?

• Is the service/ asset valued by the local community?
• Have you conducted public consultation and taken

your community with you?

• Are people prepared to pay more to keep the asset
• r service?

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Common identified risks

 Do you have the necessary staff skills, experience, knowledge and capacity?  Can you afford to refurbish the asset or take on the service and maintain it?  Would the service/asset pay for itself and any extra staff?  Could this be an opportunity for community action and getting volunteers involved in their community?

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Common identified risks.

• Do you have all the policies and procedures you

need in place?

• Free Tool to use – Community Matters’ Pre

VISIBLE specifically designed to ensure legal compliance for community organisations running assets.

• Tells you what you need, why you need it and sign

posts to model documents

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Management of the asset

• Would you manage the building yourself
• r perhaps lease to a

community/voluntary organisation?

• If so you would need (as landlord) to set

some criteria, a risk management and application process

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The benefits of asset transfer/devolution of services to the community

 Long proven history of community organisations delivering:  Civic participation.  Community safety  Social cohesion - generations working together  Volunteering – contributing to society, and as a pathway to work  Advice and information leading to financial inclusion– debt, welfare benefits etc  Leisure activities – isolated and socially excluded have a route to new friends

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The benefits of asset transfer/devolution of services to the community  Activities and services for children and young people, the elderly, the isolated, the depressed  Good neighbour schemes  Exclusion and equality  Improvements to the local economy  Environmental projects

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How can a local councillor help and support CAT?

• Wealth of local knowledge
• Local champion,
• Cascading information,
• Encourage response to consultation, ensuring

community have a voice.

• Conduit for communication
• Taking their community with them

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How can a local councillor help and support CAT?

• First port of call for informal discussions and/or

expressions of interest with VCS groups re their ideas and plans.

• Important role as facilitators during the process,

helping ensure that community groups get appropriate help and support from the council,

• Ensure that a 'Can Do' attitude is maintained by all

parties even as challenges and issues arise.

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Group Exercise

Group exercise in small groups using the handout Followed by feedback session

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How can Community Matters help?

Support package

• Advice line for one-off quick answers
• Information sheets
• Model documents and policies
• Operating Standards like VISIBLE
• Your Value – a tool to measure social value
• Community Assets Matter training
• Specialist advice on leases, contracts, negotiations, business planning
• Developing the capacity of local authorities and community groups

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Feedback time

Please complete the evaluation exercise Your comments are valued

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The Next Step

For the next training session please consult with your Clerk (who will have been sent a training schedule) or check the OVW website www.onevoicewales.org.uk/training

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Thank you

Have a safe journey home