A HOLYROOD committee has backed the principles of proposed community wealth-building legislation.

The Community Wealth Building (Scotland) Bill would place a duty on public bodies — including councils and the Scottish government itself — to create plans to “facilitate and support the generation, circulation and retention of wealth in the local economy.”

Now the economy and fair work committee has backed the general principles of the Bill in a new report, with convener Daniel Johnson saying: “Our committee recognises the transformative potential of community wealth building, when supported by local authorities and other public bodies.

“The Bill is a significant step toward empowering communities and promoting inclusive economic development across Scotland.”

Mr Johnson however cautioned: “An obligation to act imposed by the legislation may not, on its own, drive implementation.

“Quality guidance to support action plans and a clear policy statement from Scottish ministers will help to support that.

“The committee agrees these changes are vital and asks the Scottish government to outline how the broader policy landscape will be adapted to support the Bill’s success.”