Scotland leads the way on community wealth building reform

17 February 2026

The Scottish Parliament has passed landmark community wealth building legislation that sets a new global benchmark for inclusive economic development. The reforms require local authorities and public bodies to demonstrate how they will use their procurement, land, financial and employment powers to build, retain and share wealth within local communities. It is the first legislative framework of its kind and represents a decisive commitment to reshaping economic systems so they deliver long‑term, locally‑anchored benefits.

The BCCM views this development as a significant opportunity for Australia to consider how similar policy settings could strengthen local ownership, improve competition and increase regional economic resilience.

A structural shift towards local value creation

The legislation provides smaller enterprises, community‑owned organisations, co‑operatives and mutuals with a greater ability to compete for public contracts. By embedding community wealth building outcomes into procurement decision‑making, the Scottish model prioritises organisations that reinvest profits locally, maintain local ownership and deliver sustained economic and social value.

These reforms highlight an international recognition that traditional procurement systems often favour large incumbents and enable wealth to be extracted from regional and local economies. The Scottish approach addresses this by ensuring public spending contributes to community resilience rather than short‑term transactional outcomes.

Lessons for Australia’s policy landscape

Australian governments are increasingly focused on improving productivity while ensuring economic growth is fair and inclusive. In New South Wales, for example, government procurement reform has been identified as a key lever for strengthening regional economies and enhancing local participation. However, smaller businesses continue to face structural barriers when competing with large firms that benefit from scale, capital advantages and consolidated market power.

Co‑operatives, mutuals and employee‑owned businesses offer proven pathways for collaboration that do not compromise local control or ownership. The Scottish legislation demonstrates how governments can create policy conditions that enable these models to contribute fully to national economic goals.
The BCCM sees strong potential for Australia to adapt similar principles by embedding community value in procurement frameworks, strengthening local ownership models and ensuring that public contracts reward organisations that deliver long‑term benefits.

A model of leadership for inclusive economic reform

Scotland’s community wealth building legislation demonstrates what is possible when governments move beyond intention and adopt bold, practical reforms that address inequality, market concentration and local economic decline. The new framework aligns procurement and planning systems with the goal of ensuring that wealth generated in communities stays in communities.

For Australia, the opportunity is clear. By adopting policy settings that recognise and enhance the role of co‑operatives, mutuals and other locally anchored enterprises, governments can build a more competitive, inclusive and resilient economy.

The BCCM welcomes Scotland’s leadership and encourages Australian governments to consider how similar reforms could support local ownership, fair competition and community‑centred economic development.

View the Community Wealth Building (Scotland) Bill.