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Dormant Assets Funding: Community Wealth Funds
06 December 2022
Lead MP
Jo Gideon
Responding Minister
Stuart Andrew
Tags
EconomyTaxation
Word Count: 8423
Other Contributors: 9
At a Glance
Jo Gideon raised concerns about dormant assets funding: community wealth funds in Westminster Hall. A government minister responded.
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:
Lead Contributor
Opened the debate
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.
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
Government Response
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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About Westminster Hall Debates
Westminster Hall debates are a chance for MPs to raise important issues affecting their constituents and get a response from a government minister. Unlike Prime Minister's Questions, these debates are more in-depth and collaborative. The MP who secured the debate speaks first, other MPs can contribute, and a minister responds with the government's position.