Efforts to level out the uneven distribution of wealth across communities in Scotland have received a £400,000 funding boost to help build more resilient local economies.
The newly-launched Democratic Finance Scotland programme, backed by Scottish Communities Finance and Development Trusts Association Scotland, has been awarded a grant from the Esmée Fairbairn Foundation. Based in London, one of Esmée Fairbairn's main aims is to secure a fairer future and strengthen bonds in communities across the UK.
With an overall budget of £1.34 million, the three-year Democratic Finance Scotland programme will support communities to be "agents of change" by unlocking local wealth through democratic finance tools. It will provide practical, hands-on guidance in areas such as alternative income sources like community shares and grass roots legacy giving.
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There will also be a focus on funding and investment opportunities from the renewables transition which prioritises the economic resilience of local communities.
“It is abundantly clear that there is an uneven distribution of wealth within Scotland’s communities," Morven Lyon of DTA Scotland said. "The communities we support are crying out for more financial resilience and power, to allow them to take ownership of important community assets and run successful, democratic, community-controlled businesses.
"We believe the key to this is supporting community-led organisations to access a more diverse range of local sources of money – what we have termed ‘democratic finance’. Whether is it community shares, community bonds, one-off lotteries, local legacies, or the many financial opportunities from the renewables transition – democratic finance allows them to move away from piecemeal grant funding towards more sustainable economic resilience rooted in local control and democratic accountability.”
Democratic finance models in Scotland have raised more than £20m from 18,000 citizen investors during the last 10 years by using community shares and community bonds. These funds have been used to finance a host of enterprises including shops, pubs, community hubs, community renewable energy, arts, tourism and sports initiatives.
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