Community Assets

LEGAL MATTERS

Plunkett’s mission is to empower local communities to take control of assets at risk of closure or neglect, transforming them into vital community hubs. Michael Wolverson, Communications Officer at Plunkett UK, explains how councillors play a crucial role in helping communities secure these valuable assets.

Did you know that wherever you are in the UK, you’re never more than 10 miles away from your nearest community business?
Founded by Horace Plunkett in 1919, Plunkett UK has promoted the community ownership model for more than 100 years. With a proven track record of delivering better businesses for people, communities, the economy, and the environment, the charity supports the establishment and operation of a wide range of community-owned businesses, including village shops, pubs, cafés, woodlands, fisheries, and farms. By bringing together diverse networks of people, community businesses promote local action and address a wide range of issues, always prioritising the interests of their community.

What is an Asset of Community Value?
A common starting point for many community-owned businesses is to register a local asset as an ‘Asset of Community Value’ (ACV). If the main use of the asset has recently been, or is presently used to further the social wellbeing or social interests of the local community and could do so in the future, then local residents can choose to nominate that asset as an ACV.
Registering a local building or land as an Asset of Community Value is a process that is overseen by the local council and gives the asset a degree of protection. In short, should an ACV ever come up for sale, the community will be able to exercise a Community Right to Bid on the asset. Thus, a six-month period will be given for the community to acquire the finance to make a bid on the asset. However, without an ACV registration, an asset can be sold, and even converted or demolished, without giving the community the chance to buy it for local benefit.
There are about 3,400 assets currently listed in England: 41% of which are pubs, 14% green/open spaces and 10% community hubs. The other 35% is made up of allotments, sports facilities, and religious buildings.

The role of parish councils in helping groups to register as ACVs
Communities apply for buildings or other assets within their area to be listed as an ACV with their local authority. This process allows parish and town councils, community businesses and other organisations, or other non-constituted community groups (with at least 21 members) to nominate ACVs. The registering organisation must clearly outline the social benefits and interests associated with the asset they are registering.
The Localism Act states that ‘social interests’ for ACVs include cultural, recreational and sporting interests. If the nominated asset meets the criteria, it will be added to a list of assets maintained by the local authority and this status will remain in place for at least five years. Should the council decide that the nomination does not meet the criteria, they are required to inform the nominating group and provide an explanation. Additionally, the local authority must keep a record of unsuccessful nominations.
Landowners have the right to request a review of the inclusion of an asset on the list, which can lead to an appeal to an independent body known as the First Tier Tribunal. The primary reason communities list buildings as ACVs is to trigger a moratorium period. This period provides up to six months for a community group to develop a proposal and bid for the asset if it becomes available for sale. It is important to note that this is not currently a right of first refusal for the community; rather, it simply allows time to develop a business case. There are two key moratorium periods:

1. A six-week initial moratorium during which the community (or a representative group) must notify the local authority of their intention to bid.

2. An extended six-month period, allowing time to develop a formal proposal and secure the necessary financing to support a bid for the asset.

It is considered good practice for parish and town councils to collaborate with any developing and aspiring community business projects preparing a bid for an ACV. This includes ensuring that a professional valuation of the building has been completed and that the community is not being asked to pay above market value.

How does a community-owned business work?
In the context of Plunkett’s work, community-owned businesses are defined as businesses that are owned and controlled by community members, who each have an equal and democratic say in how the business is run. Community business membership is voluntary, affordable, and open to all, through people being shareholders. This is what gives community-owned businesses longevity, as member control and input ensures the business is continually adapting and serving the needs of its members and wider community.
Once in community ownership, an elected committee or board will continue to represent the wider membership and determine how the business is managed. The committee will either delegate the day-to-day management of the business to a team of paid staff or/and volunteers who will operate the business within a framework set by the community.

The primary point of contact for communities
Today, Plunkett represents more than 800 community businesses in rural and urban areas throughout the UK.
Once these businesses start trading, they rarely fail, boasting a five-year survival rate of 99% and a 20-year survival rate of 94%. With Plunkett’s assistance, more than 500 groups are actively pursuing community ownership, aiming to ensure these businesses start correctly and flourish as vital community hubs. Plunkett provides groups with practical advice, business support and training to help them establish and run community businesses that positively impact local people. Once open and trading, Plunkett continues to support these businesses. At any time, the businesses can request specialist advice, updates and advice on their governance structure and business operations, networking opportunities, and access to events and training courses run by experts.

Plunkett’s offer to local councils
Parish and town councils play a crucial role in the ACV process, serving as the primary point of contact for communities to register the assets that matter most to them. Plunkett encourages councils to raise awareness of community ownership and demonstrate how the model works in various contexts and can provide resources and materials to support this process. The organisation can also provide access to free advice and support to groups looking to register assets and to explore community ownership in greater detail thereafter. The desired outcome is an increase in the number of assets listed with genuine interest, and confidence in pursuing community ownership if they become available.

More than just a business
Plunkett UK is committed to empowering community-owned businesses to make a significant impact, often becoming “more than…” the traditional business that is being brought into community control.
These establishments serve as more than just places of employment; they act as hubs where individuals can come together, socialise, and build connections. The emphasis on creating opportunities for employment, training and volunteering is particularly impactful for young people seeking valuable work experience to boost their confidence and advance their careers – a genuine priority in many rural areas.
These businesses contribute to the local economy by prioritising local supply chains, whether through a ‘farm to fork’ approach or by engaging local tradespeople to expand their infrastructure, thus offering more space for community use. Community businesses also make a difference in combatting climate change by reducing the need to travel to access key services, and through utilising green spaces for community food growing schemes, or biodiverse management.
Plunkett UK advocates for community businesses to champion equity, diversity, and inclusion – breaking down barriers for people to get involved and to foster safe and inclusive environments. By extending support to under-represented areas, the growing community ownership movement, aims to address many of society’s ‘hidden needs’ such as mental ill-health, loneliness and isolation, that can be particularly prevalent in rural settings.

Join the movement
Membership is the cornerstone of Plunkett’s work. The strength of this network, made up of more than 700 community business members, support organisations and individuals cannot be underestimated.
Plunkett understands that establishing and running a community business can bring a wide range of benefits but can also bring challenges. A supporter’s membership directly contributes to the advice and practical help that Plunkett provides each day for rural communities and helps to strengthen the rural position in national policy.

Find out more on Plunkett’s website: https://plunkett.co.uk/become-a-member/

The Ickleton Lion, Cambridgeshire:
Plunkett worked with this group, who now have the keys.

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Written by Michael Wolverson, communications officer, Plunkett UK
As appeared in Clerks & Councils Direct, January 2025
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