Government launches scheme to encourage residents to buy shares in local pub

The Community Shares Unit is designed to help pubs to use share offers as a way of raising finance for new projects, and gives members a direct say in local businesses.

The Government explained that most investors buy shares to help achieve a social good, however if the enterprise is successful they may also benefit from dividend payments. The scheme encourages dividends to be paid in money, but also with discounted pints, and local, fairly-priced food as possible incentives.

The new unit aims to grow the community shares market with the ambition of launching over 200 share issues over the next three years. It will also offer guidance and advice to investors seeking to understand more about the market, and support community enterprises, with services such as checking offer documents.

Community Shares Unit is backed by the Department for Communities and Local Government and run by Co-operatives UK and Locality, a network for community-led organisations.

Communities minister Don Foster said: “We are shifting control away from Whitehall, handing communities the powers they need to run their own affairs. Across the country, communities are showing they have the ambition and determination to secure ownership of important local assets and get new projects off the ground.

“We want to create the conditions in which social investment and community finance can flourish to make this happen. This new unit will give them the helping hand they need to take full advantage of the opportunity to do things their way, in the best interests of their area.”