Global attention is currently fixed on the Scottish Government, which has successfully introduced an Act that sets a precedent most nations have yet to follow. Although it hasn’t dominated local headlines, international media and social platforms are praising the Community Wealth Building (Scotland) Act 2026 for its commitment to prioritising citizens over corporations.
It’s official, the Community Wealth Building Bill has passed Royal Assent, and is now an Act.
What is the Community Wealth Building (Scotland) Act 2026?
The core objective of this new legislation is to ensure that public spending actively supports small businesses and residents rather than large-scale corporations. When awarding projects or investing in job creation, public bodies must now focus on keeping wealth within the community, whether at a local, regional, or national level.
The Bill encourages public entities, including local councils and health boards, to rethink how they invest. The strategy emphasises three main goals:
- Generation: Creating new wealth within the region.
- Circulation: Ensuring money flows between local entities.
- Retention: Keeping financial benefits within the local economy.
From assisting residents in purchasing vacant land and buildings to ensuring services and goods are sourced locally, this Bill represents a hopeful shift. It marks a significant new beginning focused on returning resources and opportunities to the people. And now, it’s officially becoming law!
You can read the full Community Wealth Building (Scotland) Act 2026 on the official Government Legislation website. However, the full Act must be written up by Scottish Ministers based on the current outline, with no exact date confirmed as of yet.
Stacey Dingwall, Head of Policy & External Affairs (Scotland) at the Federation of Small Businesses (FSB), said: “FSB is a long-time supporter of the Community Wealth Building agenda, therefore it’s welcome to see the Bill pass today.
“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.”
Public Finance Minister Ivan McKee said: “Community Wealth Building is an approach to economic development that can deliver sustainable growth and foster resilience in our local economies. 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.”
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.”
