On 11 February 2026 the Scottish Parliament passed the Community Wealth Building Bill. Although the Bill had no votes against, and no abstentions, there were 26 MSPs who did not vote.

Public Finance Minister in the Scottish Government Ivan McKee said:

“This unique legislation will help to deliver more benefit from investment in local economies so that they become fairer, greener and more prosperous.

“It will also strengthen partnership working in our communities, and I look forward to working closely with public bodies to building on existing links.”

The legislation is intended to support investment in communities with councils, health boards and other public bodies to keep wealth building local.

This could include buying or procuring more goods and services from local businesses, boosting social enterprises or helping community groups to acquire vacant buildings and land.

The Bill has the support of the Federation of Small Businesses (FSB). Stacey Dingwall, Head of Policy & External Affairs (Scotland) at the FSB said:

“Opening up public procurement contracts to small businesses is crucial to boosting economic growth, yet many still face barriers to accessing opportunities.

“Passing this legislation gives us a real chance to make progress here. Investing more public money in local businesses is also an investment in local job opportunities, ensuring as much wealth as possible is retained in local communities.”  

The Bill will not become an Act of the Scottish Parliament until it receives Royal Assent from the King. This usually happens after around 4 weeks. During that time the Bill will be looked at to ensure it is within the powers of the Scottish Parliament. It may not be sent for Royal Assent if an issue is found. This is because the Scottish Parliament is devolved and its powers are limited by the UK Parliament.

Neil McInroy, Chair of the Economic Development Association Scotland, commented:

“We support the Bill because it marks a positive shift in economic development amid wider global crises and upheaval.

“Some local councils and many organisations across Scotland are already advancing Community Wealth Building, and this Bill provides the enabling framework that secures that progress and deepens it.

“By changing patterns of wealth, it boosts productivity, helps tackle child poverty and cost‑of‑living pressures, and builds economic dynamism. Crucially, it advances economic democracy by giving communities, workers, and all of us a fuller stake in Scotland’s future.”

The Community Wealth Building (Scotland) Bill  was introduced on 20 March 2025. “The Bill aims to ensure that local authorities and other parts of the public sector implement community wealth building across Scotland. It does this by placing duties on Scottish Ministers and various public bodies, particularly local authorities. These duties relate to the publication and implementation of statements, action plans and guidance.   ”

Fiona Grahame