Assets of community value: Shropshire Council in rules change

Shropshire Council's cabinet has approved changes to the authority's regulations on its 'community right to bid' process – used by groups to safeguard land, pubs, sports centres and other facilities for the community.

It has also removed voluntary groups and constituted community groups from those which can nominate assets of value because they do not qualify under the legislation.

The community right to bid process has seen 106 nominations made since it was introduced in Shropshire in September 2012. So far 74 have been successful.

If property is designated as a community asset then it cannot be sold without giving the nominating group six weeks to decide if it wishes to try to buy the site.

If the group does it then has six months to bid for the asset – although the owner has no obligation to sell to the group and can sell the site to the highest bidder.

Shrewsbury's Meole Brace Pitch & Putt is one asset on the register, although Shropshire Council has decided to put the site up for sale. There is no word yet on whether the group which registered the site will decide to bid.

A report from Tim Smith, head of business enterprise and commercial services at Shropshire Council made two recommendations that were approved by the authority's cabinet.

It stated: "Remove “constituted community / voluntary group from the list of organisations that can nominate (this type is not a qualifying organisation under the legislation). This type of body could come under the “unincorporated” body provided it meets the requirements of this definition.

"Request more detailed information from the nominator, parish council and community enablement officer (to enable more effective and efficient consideration of whether the asset should be listed as an asset of community value)."

Groups that can nominate assets of community value are a body designated as a neighbourhood forum, a parish council, an unincorporated body whose members include at least 21 individuals with a local connection that does not distribute any surplus it makes to its members, a charity, or a community interest company.

Companies limited by guarantee, and industrial or provident societies are also eligible provided they do not distribute any surplus they makes to their members.

The report also outlines what constitutes an asset, stating: "The definition of an asset of community value is where its main use must further the social interest or wellbeing of the local community and it must be realistic to think that such a use can continue.

"Social interest includes cultural, recreational or sporting interests. A suggested definition of social wellbeing is those economic, social or environmental things that people value in their life and contributes to them reaching their potential."