Commons Sense

House of Commons · Westminster Hall

Dormant Assets Funding: Community Wealth Funds

06 December 2022 · 9 other contributors · 8,423 words

Opened by Jo Gideon Con Stoke-on-Trent Central

Responding minister: Stuart Andrew

EconomyCommunity SecurityLocal Government

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Jo Gideon raised concerns about dormant assets funding: community wealth funds in Westminster Hall. A government minister responded.

Key points

  • Concerns raised about underfunded neighbourhoods receiving 7.77 per head in national charitable funding compared to other deprived areas receiving more than twice as much.
  • The MP asks the Government to consider community wealth funds for long-term investment in left-behind neighbourhoods, empowering local communities to control their development.
  • The Dormant Assets Act 2022 has unlocked 892 million over the past decade to support social and environmental causes in deprived areas.

Key requests to Government

The MP asks that the Government consider community wealth funds which could provide long-term investment in left-behind neighbourhoods and empower local communities to take control over their own development and decision-making processes. She urges the Government to capitalise on this opportunity to support levelling up efforts without placing a strain on public finances.

How the debate unfolded

MPs spoke in turn to share their views and ask questions. Here's what each person said.

Opened the debate

Jo Gideon Con Stoke-on-Trent Central

The Member of Parliament for Stoke-on-Trent Central is concerned about underfunded neighbourhoods experiencing deteriorating social infrastructure, resulting in worse outcomes across health and wellbeing, education, and employment. These areas have received £7.77 per head in national charitable funding compared to other equally deprived areas receiving more than twice as much. During the cost of living crisis, these communities are particularly vulnerable due to a lack of resources and skills for applying for funds.

Other contributors (9)
  • Barbara Keeley Lab Worsley and Eccles South

    Barbara Keeley emphasized the critical need for further funding to support charities amidst financial strain caused by rising costs of living and increased demand for services. She highlighted that charity reserves had already been depleted due to previous crises like the pandemic, making immediate additional funds crucial. She also noted that Labour's expansion plan would have included more asset types such as pension assets and gambling winnings.

  • Danny Kruger Reform East Wiltshire

    He expressed support for the cross-party proposal of a community wealth fund, which aims to take economic development out of political cycles and central government control. He emphasized the importance of treating people as active agents in their own lives and the need to build social infrastructure, including capacity building within communities to manage funds effectively.

  • Ian Levy Lab Blyth Valley

    He supports creating a community wealth fund through dormant assets, citing examples from his constituency such as the Cowpen ward's Forget Me Nots group. He argues for investment in social infrastructure to enhance local connectivity and engagement, aiming to regenerate communities from the bottom up.

  • Jack Brereton Lab Stoke-on-Trent Central

    He supports the creation of a community wealth fund, focusing on 'left behind' neighbourhoods in Stoke-on-Trent. He highlights the Mere North ward as particularly deprived and emphasises the importance of local engagement and projects like the Engage Mere initiative to improve transport access and quality of life.

  • Jim Shannon DUP Strangford

    Jim Shannon welcomed the Dormant Assets Act 2022 extending to Northern Ireland and highlighted the importance of community funds for social enterprises, which generate an annual turnover of approximately £980 million. He mentioned that some communities lack social infrastructure and need assistance from community wealth funds, asking the Minister to discuss progress with counterparts in Northern Ireland.

  • Kieran Mullan Con Bexhill and Battle

    My hon. Friend agrees that focusing on local neighbourhoods rather than regional or local authority levels is what people truly desire for making a difference, suggesting the potential of community wealth funds to enable this.

  • Kim Leadbeater Lab Spen Valley

    The hon. Lady agrees that talent is widespread but opportunity is not, highlighting the importance of local spaces for community building and social wellbeing. She emphasises the need for a radical approach to ensure responsibility lies with those who benefit from community wealth funds.

  • Marion Fellows SNP Torfaen

    Ms Fellows highlighted the growing issue of dormant assets, particularly affecting elderly customers due to bank closures and reliance on digital banking. She cited HSBC's closure of 100 branches and noted that over 400,000 Scottish residents over 60 do not use the internet, making it difficult for them to access their accounts. She also discussed the importance of reunifying dormant assets with account holders and mentioned how Young Start programme in Scotland has benefited from £67 million of dormant asset funding.

  • Sharon Hodgson Lab Washington and Gateshead South

    She praised the Labour Government's 2008 dormant assets legislation, which raised over £800 million for social and environmental causes. She highlighted research identifying 225 'left-behind' neighbourhoods with significant deprivation, such as St Anne's in her constituency, noting only 25% of registered charities per 1,000 people compared to the national average. She emphasised that a community wealth fund would be transformative, especially for those most in need without having to compete for funding.

Government Response

Stuart Andrew

It is a pleasure to serve under the chairmanship, and I thank my hon. Friend for securing this debate and all Members for their contributions. The Dormant Assets Act 2022 expanded the scheme to include new financial assets and has unlocked £892 million over the past decade to support social and environmental causes, particularly in deprived areas. Since June, a public consultation on the social or environmental purposes of the funding received more than 3,300 responses, which are being assessed for potential changes to the current causes including community wealth funds. The aim of community wealth funds is to empower local residents to make decisions on how best to invest in their neighbourhoods, directing funding to areas with high levels of deprivation and low social capital. Any changes to the scheme would need to be set out in secondary legislation approved by both Houses. I am grateful for the opportunity to discuss this important idea and look forward to engaging with Members once the consultation response is published early next year.

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