Benefits of Asset Transfer

The Scottish Government Guidance on Asset Transfer states:

“When the price offered in an asset transfer request is less than the market value of the property, the relevant authority will need to consider whether the proposed benefits to be delivered by the community transfer body justify the proposed discount (which will be accounted for as a “gift”)

“The benefits of the request should be proportionate to the value of the asset and the level of discount, with an appropriate level of information to support the application”

 The relevant authority will be looking for two main types of benefit in your ATR to justify any discount you have requested. 

1. Financial savings to the public sector as a result of your proposal

Your ATR should provide details of the financial impact of your proposal, these could include:

• Direct financial savings to the relevant authority such as: no longer having to maintain the asset, pay for future capital costs (major repairs) or other running costs of the building.
• Savings made by the public sector as a result of your activities – i.e. if your project aims to reduce re-offending amongst former prisoners, that will bring about a saving to the Scottish Prison service or if you are running services which help older people remain in their own homes, that will bring about a saving to the local authority, who would otherwise have to pay the costs of their care. 

2. Level of community benefits

It is important to show the benefits you will deliver as part of your proposal. These could include contribution towards local or national priorities such as: improved standards of healthcare, contribution towards alleviating homelessness, supporting local employment, tackling poverty or protecting the environment.

The Scottish Government Guidance on assessing asset transfer requests sets out the areas that relevant authorities need to take into account when considering Asset Transfer Requests. It can be helpful to use these as headings when describing the benefits you will deliver in the Asset Transfer Request form. 

• Economic development
• Regeneration
• Public health
• Social wellbeing
• Environmental wellbeing
• Reducing inequalities of outcome from socio-economic disadvantage
• Any other benefits that might arise through the alternative use of the asset

Linking your outcomes to national and local strategies will show how your project will contribute to these priorities.

• The National Performance Framework (NPF)
• Local Outcome Improvement Plans and Locality Plans – available from your local authority website
• Other strategies – Mental Health, Environmental, Arts & Culture, Heritage…

Read through these documents and make direct connections between your proposal and the outcomes in the strategy i.e. “Our baby and toddler service will help meet the NPF outcome ‘Our children grow up loved, safe and respected so they realise their full potential’ by providing a supportive and nurturing environment for young children”

Detailing ‘softer’ outcomes is important as well, benefits such as: the improvement in local wellbeing from developing local green spaces; the increase in participation from a marginalised group or groups, improved community cohesion, pride in the community and intergenerational activity are all important benefits even if they are harder to quantify. 

You may find using the Outcomes Matrix useful for considering the range of outcomes your project could deliver. 

Scottish Government Guidance – Assessing ATR

These are the areas that the Scottish Government Guidance recomends that relevant authorities should consider when assessing an asset transfer request, bear them in mind when writing your ATR. 

a) Value to relevant authority in existing use

• feasibility and cost of relocation of services elsewhere
• potential revenue savings arising from transfer

b) Value for alternative use/redevelopment

c) Value for proposed and other community purposes

d) Level of community benefits

• extent of community served.
• nature of benefits to be delivered.
• links to relevant authority’s corporate priorities and outcomes.
• community need/demand for the services.

e) Likelihood that benefits will be delivered over a 5-year period

• strength of organisation.
• sustainability of business plan/project.
• sources and level of funding support.

f) Impact of project failure

• to surrounding local environment.
• to reputation of the parties.
• to the service users/relevant authority’s objectives.

The Legal Requirements

It is sensible to use the Asset Transfer Request Form provided by the relevant authority, as this will help you submit all the required information. However, it is not a requirement that you do so. If you choose not to use the provided form, see the Content of an Asset Transfer Request section of this site for further details of the information you must provide.

Additional Documents

In addition to your Asset Transfer Request Form, you may need to submit the following documents as part of your request:

How to complete your Asset Transfer Request

Although you can submit the information above and have your Asset Transfer Request be compliant with the legal requirements, submitting minimal information is unlikely to be enough to have your asset transfer request approved. Relevant authorities will require more information about your organisation, your plans, the support from your community, the benefits you will deliver and the finances behind the project.

Most relevant authorities will use some kind of assessment matrix to score your Asset Transfer Request and determine whether or not to approve it. Ask your contact at the relevant authority for a copy of the matrix, so you can understand their priorities and the information you will need to provide.

How much information and detail you provide in your Asset Transfer Request should be proportionate to the scale of your project. A simple transfer of ownership for an asset which you have been leasing for a number of years should not require a highly detailed request. However, if you are taking on a large project, an asset with historical significance or a building delivering important services you should be prepared to provide detailed and robust plans to the relevant authority.

The Scottish Government provides a model Asset Transfer Request Form and most relevant authorities use this or an adapted version. These are the main sections and the information you will need to provide.

1. Community Proposal
2. Benefits of the proposal
3. Capacity to deliver
4. Level and nature of support
5. Funding

Community Proposal

This is where you say why you want to take on this asset, your project objectives and any changes you plan to make.

• Start by providing a bit of background about what the needs and aspirations are in your community, the problems and issues, but also the strengths you can build on.
• Outline your main objectives for the asset and set out a clear vision of where you want to get to.
• Set out all the activities you plan to deliver using the asset.
• Set out timescales and stages as part of a project plan – when you will start delivering activities, if you are having refurbishment work done outline when will you expect that be complete. Be realistic and build in extra time for delays.
• If you considered other options for different sites or alternative ways of acheiving your objectives, set out the reasons why you chose this asset as the best option.

Benefits of the proposal

This section is where you outline the benefits your proposal will have for the community. Please refer to the Demonstrating Best Value and Justifying the Discount sections on the left for further details of how to complete this section.

The Scottish Government Guidance on assessing asset transfer requests sets out the types of benefits that relevant authorities need to take into account when considering Asset Transfer Requests. It can be helpful to use these as headings when describing the benefits you will deliver in the form.

• Economic development
• Regeneration
• Public health
• Social wellbeing
• Environmental wellbeing
• Reducing inequalities of outcome from socio-economic disadvantage
• Any other benefits that might arise through the alternative use of the asset

Capacity to deliver

This section is about demonstrating you have the capacity to deliver the project you have outlined and the benefits. Capacity includes skills, experience, resources and time.

• Outline your governance structure – what type of legal structure, charitable status, number of people on your board, how often you meet, any sub-committees, what policies you have in place etc.
• Outline the skills you have on your board and those you have access to in your wider membership and community. A short bio of each board member with their skills and experience is helpful. Highlight skills relevant to the asset transfer such as finance, project management and facilities management.
• Provide details of past projects you have completed succesfully as an organisation – if you are a new group then refer to the experience you have from previous voluntary roles, work and personal lives.
• Show clearly who is going to be responsible for each part of the project and how as a board you are going to oversee the asset transfer. If you have used or plan to use professional advisors, give details of the type of advice they will provide.

Level and Nature of Support

This section gives you an opportunity to show support for the project from your community.

• Indicate the types of work you carried out to gather views from the community – surveys, social media activity, workshops, interviews and petitions.
• Provide headline figures from any enaggement work you have undertaken to gauge support and gather ideas. The full reports can be submitted as additional documents
• Indicate any letters of support you have from individuals and organisations. The letters themselves can be submitted as additional documents
• If you have identified any groups or individuals who may be negatively impacted by the asset transfer, set-out here how you have engaged with them and how you will work to reduce any negative impact.

Funding

In this section you need to provide details of how you plan to fund the asset transfer, the resulting project and create a sustainable business model.

• Provide details of capital funding that will be required for the transfer itself and any additional works you plan to have undertaken. Detail where you intend to source that funding – trusts and foundations, donations, own funds etc. It is not expected to have all the funding secured, but an indication of eligibility and early discussions having taken place is advisable
• Provide details of how you will manage to run the asset in a financially sustainable way once transferred. A forecast of income and expenditure is advisible. If you are not sure of running costs, ask the relevant authority for what their operating costs have been.

Read the guidance

The Scottish Government guidance is vital reading when preparing your asset transfer request. Chapters eight, ten and thirteen have the most relevant information.

• Chapter eight tells you what you must include and how to make an ATR.
• Chapter ten tells you about the decision making process and the things the public body will take into account.
• Chapter thirteen tells you how the public body assesses the request and the criteria they will use to determine whether your ATR is successful.
• Some public bodies have their own guidance which may have additional information you should also consider.
• Many public bodies will use a Scoring Matrix to determine ATRs. Ask the public body for a copy of the template, so you can ensure you are covering all the areas you will be scored on.

The viability of your project is often dependent on knowing as much about the asset as possible prior to submitting an ATR. Getting this information early will save any nasty surprises later in the process.

• Ask the public body for information on the running costs of the asset – utilities, rates, insurance etc.
• Request to see any surveys, condition reports or maintenance schedules so you can determine the likely costs of renovations or future repairs.
• Ask for information on any access rights or legal burdens attached to the asset.

Ensure that the reader of the ATR is made aware of what you hope to achieve as early as possible.

• The first part of your project proposal should set-out a clear vision for the project.
• In one or two paragraphs, outline a succinct statement of the impact you will have on your community.

The Asset Transfer Request will be used to inform a report which is likely to make a recommendation on whether to approve your ATR.

• Think about the things that are important to the officers writing the report and the various departments within the organisation who will have an interest – Property, Legal, Finance, Community. Try to anticipate the questions they will have and have answers available in your ATR.
• If it goes to a committee of councillors or an independent board, what are their priorities and concerns likely to be and how can your project address them?

It is important to see your asset transfer as part of a broader strategy, both locally and nationally. You should show how it fits in with local plans and the work of other organisations. This doesn’t mean changing what you plan to do, just showing how it contributes to already established plans.

• Always link the benefits you are going to deliver with priorities for public bodies (especially the one your ATR request goes to!) – look at local plans, other strategies, and the National Performance Framework.
• Look at any sector specific plans i.e. if your project involves sport, how does it link in with national strategies for sport. If there are objectives in these strategies that you contribute towards, be explicit in saying so.

Include everything that is relevant in the form, you can’t expect the public body to know about something you haven’t included.

• Public bodies want reassurance that the project will be successful, so don’t be shy about highlighting your achievements so far and the skills and experience in your organisation. If you are a newly established organisation, then focus on your board/steering group and the skills they bring from their personal and professional lives.

• Describe your governance arrangements in detail and mechanisms you have in place to ensure accountability. If you haven’t got systems in place yet, describe how and when you will do so.

It is important to say in a reasonable level of detail what you want to achieve, and how you will get there.

• Use SMART objectives when describing what your aims are – Specific, Measurable, Achievable, Realistic, Timebound
• Include a project plan with a timeline, key stages and the activities you will undertake.
• Ensure your plan fits with the timescales for the Asset Transfer process and funders deadlines.
• Make sure you’ve considered all the resources you will need for the project – technical help, financial resources, volunteer time.

All projects have negative aspects, risks or challenges. If you ignore them in your ATR, it suggests you haven’t considered the project carefully enough.

• Show you’ve identified and assessed any risks and then say how you will reduce their impacts.
• Outline any negative consequences and be honest about who will be affected. Show that you have considered those affected and any actions you will take which may lessen those impacts.

The benefits you will deliver in your community are essential to the success of your ATR. Particularly if you are seeking a discount from the public body, as you will need to justify that discount through the benefits you will deliver.

• Calculate and outline financial benefits to the public body where possible – this could be in the form of direct financial savings (reduced operating costs) through to more indirect savings from the impacts you will have – reduced pressure on their services.
• Calculating the financial contribution made by your volunteers is a straightforward way of showing financial benefits – volunteer hours per year * Living Wage.
• Capture all the benefits your project will deliver – think carefully about the activities you are planning and what the full impact of those will be on the community. i.e. if you are running a lunch club for older people – it will have impact on reducing isolation, improving mental health, improving physical health and will save the public sector money by reducing pressure on the NHS and council care services.

 A well-written ATR is important, but if you have community councillors, councillors, MSPs, MPs, civil servants and local leaders behind your ATR, it stands a far greater chance of success. Calling, writing to and briefing politicians and officers will increase the support for your request and get people lobbying on your behalf.

This is a process used primarily for outdoor spaces rather than for whole neighbourhoods. Other tools might be more appropriate for whole neighbourhoods unless looking only at the outdoor spaces between buildings.

It is based on the premise that successful places are characterised by lively, secure and distinctive public spaces that function for the people who use them. It involves working with the people who live in and/or use a particular place, in order to discover their needs and aspirations. This information is then used to create an agreed place vision and action plan which focuses on people and function rather than design-led solutions.

The Greenspace Scotland process involves systematic observations, interviews, surveys and place evaluation workshops with local communities and their partners. There is an emphasis on making both short term, often low cost, and long term changes. The place vision can evolve quickly into an implementation strategy, beginning with small scale, do-able improvements that can immediately bring benefits to places and the people who use them.

The process encourages a unique sense of community ownership and stakeholder support, enabling those with a diverse range of interests to identify and achieve a common purpose for the benefit of all.  It can yield benefits far beyond making better spaces for people developing community identity, skills and capacity.

Four principles applied to the Greenspace process are;

• Identifying problems
• Developing the vision
• Making it happen
• Developing sustainable management processes

A community participation body may make a request to a public service authority to permit the body to participate in an outcome improvement process. Having a Community Place Plan helps communities to be clear about what they want from services delivered by public bodies and means that they can use participation requests as part of the implementation of their plan.

Participation requests under the Community Empowerment Act, are not the only way for communities to engage and participate with public bodies. In general terms participation requests are intended to provide opportunities for communities to pro-actively be involved in improving outcomes.

As such they are designed to help groups highlight community needs and issues, and become involved in change or improvement. They are not intended to replace good quality existing community engagement or participation processes but are rather designed to complement and enhance them. Similarly, Participation Requests are not intended to be an extension of complaints procedures but should rather be viewed as an opportunity for communities to establish formal dialogue with public service authorities.

There are a range of possible uses of Participation Requests which can be broadly divided into four categories as follows:

To help people start a dialogue about something that matters to their community, through highlighting needs, issues or opportunities for improvement.

• Example: a group of fathers/grandads have identified a lack of opportunities for support for men and their children within their local area. They are not a constituted group, but have informally come together to provide play activities for their children and have established an informal network. They have identified that there are many men living in the area who are unemployed and who care for their children/grandchildren, and that they struggle to access free or affordable play activities and support. The group want to improve access to existing parents’ groups for men locally, and to work with service providers to establish a father’s group. They have made a participation request to their health board around positive parenting.

To help people have their voice heard in policy and service development, through contributing to decision-making processes.

• Example: A tenants’ organisation which represents a neighbourhood wishes to influence how decisions are made in relation to community safety. They have identified a community safety issue which is specific to their neighbourhood, but which they believe has not been prioritised within wider community safety planning. They feel that their voices have not been heard within the process, and have made a participation request to their local authority to be involved in community safety planning structures.

To help people to participate in the design, delivery, monitoring or review of service provision, through contributing to service change or improvement.

• Example: A network of refugees and asylum seekers from across Scotland have carried out a survey which shows a range of experiences in relation to accessing English language courses. They wish to work with statutory providers to ensure that all refugees and asylum seekers have equal opportunity to access English language tuition, and in particular to address the issue of cost and timing/availability of transport which was reported as barrier for those living in more rural communities. They have made a participation request to a regional transport provider around equality of access to transport.
• Example: A local Development Trust wants to take over the running of a local care service and makes a participation request to the local authority to start a dialogue on the issue. People in the community feel strongly that there is a need for such a care service to be delivered locally as it enables many older people to continue to live in their own homes.

To help people challenge decisions and seek support for alternatives which improve outcomes.

• Example: A community development trust is seeking to challenge a decision about a woodland area which is well used by the local community for outdoor activities such as biking, walking and woodland education. The woodland is owned and managed privately and the owner has endeavoured to restrict access to the site claiming that this is due to the discovery of a protected species.  The community development trust has made a participation request to the National Park Authority to become involved in finding a suitable resolution.

The most common definitions describe participation as “the act of taking part in, or sharing in something”. The term is one which implies an active rather than a passive process and it is the intention of the Act to enable the active participation of communities in addressing the issues and opportunities which are of greatest importance to them.

When done well, the process of community engagement should lead to improved community participation so that communities can have more influence over the services and decisions that affect their lives. Some of the benefits of good community engagement and better participation include:

• The way in which public services are planned, developed and delivered is influenced by, and responds to, community need.
• People who find it difficult to get involved (for example, because of language barriers, disability, poverty or discrimination) help to influence the decisions that affect their lives.
• The various strengths and assets in communities and across public and private sector agencies are used effectively to deal with the issues communities face.
• New relationships are developed between communities and public sector bodies which build trust and make joint action possible.

The National Standards for Community Engagement are a framework for public service authorities, support organisations and community participation bodies when planning and undertaking community engagement processes.

More information on Participation Requests can be found on the relevant Scottish Government webpage.

The Planning (Scotland) Act 2019  proposes changes to how land is developed and used supporting a more inclusive and collaborative planning system. Communities will have more say in shaping the future development of their areas in a radical shake-up of planning laws.

A new right means people will now be able to prepare Local Place Plans (LPPs)  covering what will be done in their communities, including over issues such as housing, open space and community facilities as well as highlighting local priorities for business and employment opportunities.

Local Authorities will be legally required to take Local Place Plans into account when preparing their development plans.

These strategies will provide long-term direction to large scale development, matching local and national planning needs, outcomes and priorities.

Additionally, the National Planning Framework, Scotland’s long-term plan for future development, will now be required to be approved by Parliament.

Other changes covered by the Act include new powers for local authorities to introduce control areas where planning permission will always be required if owners want to change the use of their property to short-term lets.

Placemaking’ is a term that is becoming increasingly used but what exactly does it mean in the context of a community?

Placemaking is a process through which places that people want to live, work, or explore are created. 

From Spaces to Places has provided a good example of what this actually means. “A simple way to look at it is to compare it to something more familiar, like the concept of homemaking. In the same way that homemaking is the process of turning a house into a home, placemaking is the process of turning a space into a place.”

You can explore some methods of placemaking in the Tools and Resources menu on the left.