Community Asset Transfer

Reasons for undertaking a CAT

As with the 2018 study, the most common reason cited by local authorities for undertaking a CAT was the need to reduce costs as a result of ongoing austerity policies. Transferees stated that they would find it more beneficial to have a two-way dialogue around programmes of asset transfer from the local authority, as opposed to the decisions on transfer predominantly being made by the local authority.

The transfer process

The survey revealed that most local authorities had a CAT policy in place. However, some transferees had highlighted that their local authorities CAT policy was not available to them, and that it would be useful to have as a guide for planning a transfer process

Success factors in a CAT

Local authorities responding to the survey felt that the most important success factors for a CAT were ensuring all due diligence was completed and transferees were competent in managing the asset, ensuring community organisations were financially secure, that the business plan put forward by transferees was sustainable and that the local authority should provide all relevant information to potential transferees to ensure they were fully informed as to their responsibilities.

Challenges of a CAT

Common challenges encountered by both parties in a transfer process included the lengthy process of transfers and the associated lack of communication during the transfer process.

Post-transfer issues

Post-transfer, there were barriers noted with regard to ensuring the sustainability of an asset, including financial losses incurred from non-income generating assets competition with other assets for income generation i.e. through sessional room-hire, and low capacity within community organisations and their support bodies.