Efforts to address the economic disparities among communities in Scotland have received a significant financial boost of £400,000 to support the development of more resilient local economies.
The Democratic Finance Scotland program, launched with the support of Scottish Communities Finance and Development Trusts Association Scotland, has secured a grant from the Esmée Fairbairn Foundation in London. The foundation aims to promote a fairer future and build stronger community bonds throughout the UK.
With a total budget of £1.34 million over three years, the Democratic Finance Scotland program will empower communities to become “agents of change” by utilizing democratic finance tools to unlock local wealth. This includes providing practical guidance on alternative income sources such as community shares and grassroots legacy giving.
Additionally, the program will focus on funding and investment opportunities related to the transition to renewable energy, prioritizing the economic resilience of local communities.
Morven Lyon from DTA Scotland emphasized the importance of addressing the wealth disparities within Scottish communities. She highlighted the need for greater financial resilience and empowerment among communities to take ownership of essential assets and operate successful, democratic, community-controlled businesses.
By supporting community-led organizations in accessing a wider range of local funding sources through democratic finance, such as community shares, bonds, lotteries, legacies, and opportunities from the renewables transition, these communities can move towards sustainable economic resilience rooted in local control and democratic accountability.
Over the past decade, democratic finance models in Scotland have raised over £20 million from 18,000 citizen investors through community shares and bonds. These funds have been instrumental in financing various enterprises, including shops, pubs, community hubs, renewable energy projects, arts initiatives, tourism endeavors, and sports programs.
