A Holyrood committee has backed the general principles of the Community Wealth Building (Scotland) Bill. The measure would require councils and other public bodies to draw up plans aimed at generating, circulating and retaining wealth in local economies, including potential increases in local procurement.

The Scottish Government would also be obliged to publish a parliamentary statement detailing actions to reduce wealth inequalities and boost wealth in local areas. The Economy and Fair Work Committee said the ideas could transform local economies when backed by public authorities, emphasising the bill as a step toward empowering communities and promoting inclusive economic development across Scotland.

The committee cautioned the legislation may struggle without broader reforms, noting witnesses’ calls for changes to compulsory sale orders and procurement practices. It also said that an obligation to act on its own might not drive change; it urged clear guidance to support action plans and a ministerial policy statement, and asked the Government to explain how the wider policy framework would be aligned to support the bill’s success.