Gazette Business
Localism Act: A Mixed Bag for Businesses?
12:43pm Thursday 19th January 2012
THE Localism Act, which came into force this month, has given communities the rights to bid to run council services and bid for land listed as an ‘Asset with Community Value’.
These rights have mixed implications for businesses in the private sector.
Community right to challenge This right allows voluntary and community bodies, parish councils or two or more council staff to express an interest in running a local authority service.
Where the expression of interest is accepted the local authority must run an open competitive procurement exercise for the contract to deliver that service.
It is by no means guaranteed that the organisation which first expressed an interest in running the service will be successful in winning the contract as the procurement exercise will be open to all bidders.
Businesses will, therefore, need to be alive to these opportunities when they arise.
Right to bid for assets of|community value This right gives communities the right to identify a building or other land they believe to be of importance to their community and, if the asset comes up for sale, they will be given a fair chance to make a bid for it on the open market.
This may present a threat to businesses where commercial properties are nominated as community assets if sales are delayed.
To be listed as an ‘asset of community value’ the land or building must further social well-being, and the cultural, recreational and sporting interests of the local community.
Community organisations will have the right to nominate land and buildings of community value, and an owner has the right to object to the nomination, though this may not be accepted.
When the owner decides to sell a listed asset they must inform the local authority, who will then inform the organisation which nominated the asset and the community generally.
Community groups can then formally express an interest in bidding to purchase the asset, and have the opportunity to prepare a business plan and arrange finance.
It will only be at the end of this process, which may take up to six months, that the owner will be free to choose who to sell to.
For more details contact the planning team at Ashfords LLP on 01392-333842. You can also visit Ashfords' planning site by going to www.ashfords.co.uk/planning
Ashfords LLP is regulated by the Solicitors Regulation Authority. The information in this note is intended to be general information about English law only and not comprehensive. It is not to be relied on as legal advice or as an alternative to taking professional advice relating to specific circumstances