Scotland Writes Community Wealth Building Into Law—A World First

World's first legislation mandating democratic economics at scale—and what it means for the movement

Nov 20th Community Wealth Building (Scotland) Bill Stage 1 Debate

TLDR: Scotland’s on track to become the first country legally requiring Community Wealth Building across its public sector. The bill passed its first parliamentary hurdle in November 2025 and would mandate that government bodies create and implement plans to keep wealth circulating locally. Final passage expected June 2026. If it becomes law, the model could spread globally.

Why this matters: Scotland’s wealth gap is massive—the top 10% own 200 times more than the bottom 10%. This legislation would make democratic economics mandatory infrastructure, not optional pilot programs.

What would happen when it passes

Three legal requirements the bill would create:

Scottish ministers would publish CWB statements every five years on how they’ll support local wealth circulation. This would anchor community wealth building as permanent policy regardless of which party holds power.

Public bodies would create action plans. NHS boards, universities, enterprise agencies, and local councils would all have to build approaches within five coordinating pillars and implement them “so far as reasonably practicable.”

National guidance would become binding. Twenty-plus public bodies including police, environmental agencies, and cultural institutions would have to give “due regard” to CWB when developing strategies.

The flexibility: The bill doesn’t mandate specific targets. Regions would adapt to local conditions while everyone participates.

The five pillars driving this

Progressive procurement strengthens local supply chains through public spending that prioritizes social value over lowest cost.

Fair employment expands living wage jobs and improves work quality through anchor institutions.

Plural ownership grows cooperatives and social enterprises that keep wealth local instead of extracted.

Democratic land use promotes community ownership generating local wealth while stewarding environments.

Local finance redirects investment to recirculate in communities rather than flow to distant shareholders.

(See the Action Guide for Advancing Community Wealth Building.)

National guidance would become binding.

Twenty-plus public bodies including police, environmental agencies, and cultural institutions would have to give “due regard” to CWB when developing strategies.

The flexibility: The bill doesn’t mandate specific targets. Regions would adapt to local conditions while everyone participates.

The five pillars driving this

Progressive procurement strengthens local supply chains through public spending that prioritizes social value over lowest cost.

Fair employment expands living wage jobs and improves work quality through anchor institutions.

Plural ownership grows cooperatives and social enterprises that keep wealth local instead of extracted.

Democratic land use promotes community ownership generating local wealth while stewarding environments.

Local finance redirects investment to recirculate in communities rather than flow to distant shareholders.

Read more about Community Wealth Building’s Five Pillars here, and check out Democracy Collab’s Guide to Advancing CWB.

What advocates are watching

The gap between law and delivery. Neil McInroy, who helped develop Scotland’s approach as government adviser, points out legislation would create enabling infrastructure but doesn’t guarantee transformation.

Implementation concerns emerged during parliamentary review:

• Lack of detail on resourcing and support for public bodies

• Risk of centralization contradicting local self-determination

• Vague accountability standards for compliance

The timeline: The bill passed Stage 1 (general principles) on November 20, 2025. Stage 2 amendments happen early 2026, with final passage expected by June 2026.

Why global movements care

This would be the first real-world test of making democratic economics legally required rather than ideologically optional.

Democratic ownership advocates have documented working alternatives for decades. Scotland’s attempting systematic scale-up through law. If it works, other regions would have a replicable model. If implementation falters, that’s valuable learning too.

The difference between symbolic policy and actual transformation lies in how guidance gets written, how bodies receive support, and whether local autonomy gets protected.

The bottom line: Scotland’s proving whether wellbeing economics can go from movement to mandate. That’s worth learning from and replicating where it works.

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About the Author

Jessica Friday is a wellbeing economist and co-creator of Connectioning, sharing stories from hundreds of movements creating an economy that serves all life. Her viral content proving community and purpose-led economics works has reached millions. Follow her story from homelessness to taking the wellbeing economy mainstream here.

For more on Scotland’s Community Wealth Building Bill:

Watch the Stage 1 Debate on Youtube

Read more through our Sources:

Neil McInroy “See latest report on how we could strengthen the bill as it goes through parliament. https://www.futureeconomy.scot/posts/359-what-next-for-community-wealth-building-in-scotland Future Economy Scotland

And also list of resources from Scotland's centre of excellence for CWB - EDAS

https://edas.org.uk/community-wealth-building-scotland/

Also work across USA and world of The Democracy Collaborative.”

https://www.democracycollaborative.org/community-wealth-building

• Community Wealth Building (Scotland) Bill - Scottish Parliament

• An introduction to the Community Wealth Building (Scotland) Bill - SPICe Spotlight

• A World First: Community Wealth Building legislation in Scotland - The Democracy Collaborative

• From Ambition to Action: Scaling Up Community Wealth Building in Scotland - Future Economy Scotland

• What next for community wealth building in Scotland? - Future Economy Scotland