The creation of the Community Ownership Fund (COF) was one of the more interesting parts of the Budget and, given the state of the pub trade, it could be one that has the most lasting effect. I should make it clear however that it is not intended only to be used for pubs. The plan is that communities can use it to buy a variety of assets at risk, such as sports grounds, theatres and music venues and even local shops. It forms part of the Government’s ‘Levelling Up’ agenda and places where community assets could make the most difference will be given preference. Both that and property prices will, I suspect, limit its effectiveness in London.
Introducing the project, the Chancellor of the Exchequer said, “Pubs and sports clubs are the heart and soul of our local towns and villages; they’re the glue that keeps us together. This fund will help to ensure vital local institutions aren’t lost to those who treasure them most.”
The Government will be putting £150 million into the COF, which will operate across all four nations of the UK. Communities can bid for grants of up to £250,000 to take over community assets which are at risk of being lost and run them as community owned businesses. This can be increased to £1 million where sports facilities are involved. The first round of bids will open in June, when full details of the bidding process will be published. The scheme will run initially for four years.
Bids are likely to be restricted to community and voluntary organisations which have some sort of formal constitution and structure in place. It is specifically aimed at these groups and local councils, including parish councils, are not eligible. Those making bids will need to prove that the project will be sustainable under community ownership.
Now for the bad news. The grants will be made on a ‘matching funds’ basis. The community group will need to raise a substantial amount of the money required themselves and this will then be matched from the fund. Some finance for planning and organising the bid may however be made available.
CAMRA welcomed the announcement. National Chairman Nik Antona said, “Our locals are vital parts of our social fabric, bringing communities together and helping to tackle loneliness and social isolation. They deserve to be protected as community assets, which is why this announcement of new funding from the Chancellor is great news for the great British pub. Having enough funding can make all the difference when a community group is campaigning to save and take over the running of their local pub. As well as this new funding announcement, the Government and local councils must make sure that pub protection policies in the planning system are properly enforced so that developers can’t exploit the pandemic. This would also give communities an opportunity and the time they need to use the new Community Ownership Fund to bid to take over the running of their local pub or social club if it is threatened with closure, change of use or demolition.”
Anyone interested in saving their local pub can find detailed guides with all the tools campaigners need on CAMRA’s website: www.camra.org.uk/saveyourlocal/.