Research Findings 11/2017 Evaluating Participatory Budgeting Activity in Scotland – Interim Report Year 2 Angela O’Hagan, Clementine Hill O’Connor, Claire MacRae, Jennifer Broadhurst and Paul Teedon Contents Introduction ............................................................................................................. 1 Evaluation Project ................................................................................................... 3 Summary of Key Findings ...................................................................................... 6 Findings in relation to core research questions ................................................ 11 Implications for practice and policy .................................................................... 15 Focus of Phase 3 ................................................................................................... 19 References ............................................................................................................. 21 1 Introduction Since 2014 the Scottish Government has invested over £4.7 million in a range of measures to support the introduction and development of participatory budgeting (PB) in Scotland. Financial support has included project and match funding for Scottish local authorities, with allocations in 2014 and 2015 to support training and practice development, fund resources to support community involvement and the delivery of participatory decision making on local resource allocation. In 2015, the Community Choices Fund was introduced as a means of direct financial support and match funding to public authorities and community organisations to support local activity and services. Part of the investment from the Scottish Government has included funding a national support programme that to date has comprised the development of a national knowledge exchange network and website; funded training and consultancy for public authorities and communities through PB Partners; support to introduce digital voting mechanisms; this evaluation study and a wider evaluation programme; an international conference in 2016; learning events and publications; and a recently introduced facilitator training programme. The third call for applications to the Community Choices Fund has an allocation of an additional £1.5m for 2017/18 to be split between public authorities and community organisations for activities to promote and advance PB. Originating in Puerto Alegre (Brazil) over thirty years ago, the concept of PB has travelled and transferred across the world, adapting to local policy and political contexts. In essence, PB aims to enable local people to decide on the issues that matter to them and to help them to understand public spending, put forward their own ideas and vote on them (PB Partners). The Scottish Government describe PB as “a way for local people to have a direct say in how public funds can be used to address local needs” and consider it to have important potential in helping individuals feel connected to each other and to their communities and can instill a sense of ownership, trust and connectivity. 1 The Scottish Government is supportive of PB as a tool for community engagement that fits with the objectives of the Community Empowerment (Scotland) Act 2015 and considers it an important resource to build on the wider development of participatory democracy in Scotland (Scottish Government website). The Scottish Government has framed its policy on PB through policy and legislative provision for community empowerment and since 2015 the funding stream and related activities have been referred to as Community Choices. Between inception in 2014 and commencement of the evaluation project at the end of 2015, 20 local authorities in Scotland were directly engaged with the Scottish Government though funding support for training on PB practice and to develop awareness of PB and practical implementation. This activity was part of the ‘first wave’ of the currently funded PB activity following political commitment from the current Scottish Government. PB as a concept pre- dates the current Scottish National Party government, and is an established method in community engagement globally. Practice among community- based or community-led organisations and some local authorities in Scotland also pre-dates the current drive to increase PB activity. This summary presents the initial findings of an evaluation study of PB activity in Scotland, with a particular focus on local authorities, by researchers based at Glasgow Caledonian University (GCU) between October 2015 and June 2017. It identifies any impact that PB has had on local communities, local services, and local democracy in Scotland across 20 local authority areas with more detailed analysis of 6 case study local authorities. The research methodology can be characterised as participatory action research, which ensures that the perspectives of distinct actors (institutional and community) are incorporated into the focus, process, and analytical activity of the evaluation project and that questions of voice, diversity, and representation are not only addressed in the research activities but form the central methodology – of interviews and focus groups. 2 Evaluation Project This interim report provides the initial findings and identifies any impact on local communities, local services, and local democracy from local authorities engaged in the process. The extent to which approaches to PB have been formulated and aim to address enduring and underlying inequalities has also been a key focus of the evaluation process. The original evaluation project was to run from October 2015 to October 2017. In May 2017, a third year was agreed to allow for closer analysis of the implications of lessons to date to inform the proposed expansion of participatory and community budgeting to 1% of local government budgets as set out in the 2016-2017 Scottish Government Programme for Government. Data is still being generated and analysed, the findings presented here are based on first round interviews with 20 local authorities and more detailed engagement with the six case study authorities. It is not intended to be a definitive analysis as the study is ongoing, but rather offers indicative implications for policy for both the Scottish Government and local authorities, and some considerations for practice development as PB expands in Scotland. A multi-disciplinary team comprising researchers from the WiSE Research Centre, Glasgow School for Business and Society (Social Sciences, and Risk subject groups); the School for Engineering and Built Environment; and the Yunus Centre for Social Business and Health has engaged in a multi-method approach to the evaluation. This has included a series of structured interviews with local authority elected members and officials; members of local communities; and engaged third party organisations. A first round of interviews with local authorities was followed by a second phase of in-depth observation at PB events; and observation (and some participation) in development groups at local and national level. A series of interviews with 3 officers and elected members from 6 case study authorities was conducted up to June 2017. The team has also attended and observed a range of activities across Scotland. An action research set of community, public bodies and local authority officers has also been established and provides an opportunity for ongoing data collection, reflection and analysis of the implementation and impact of introducing PB. Focus group discussions and the development of an action research set are ongoing activities. Between October 2015 and June 2017 the team has conducted: 5 interviews with community reps 20 interviews with elected members 2 focus groups 11 participatory budgeting events across 4 local authority areas. The cases were selected on a range of criteria to ensure a spread of experience in PB, urban and rural mix, varied funding allocations and policy framing. The six selected local authority cases are Glasgow, Edinburgh, Fife, Pan Ayrshire (North, South, and East), Western Isles Council, and Aberdeenshire Council. The ongoing evaluation study reveals a range of approaches in use to date by local authorities and variations in community engagement these activities are producing. Given the activity on the current scale is new and emerging, expectations of the impacts on communities, services, local democracy and pre-existing inequalities have to be realistic. The findings from this evaluation of current activity in Scotland reinforce previous conclusions from comparative European research and studies on Scotland in affirming that there is no one model and that significant variations in format and procedure, as well as in strategic intent are common (Sintomer et al. 2008; Escobar and Harkins, 2015). 4 After almost three years of investment from the Scottish Government and significant levels of activity by the majority of Scotland’s local authorities and a wider range of community based and third sector organisations, efforts to promote and implement PB in Scotland have been vibrant. The extent to which some of this activity is having a transformative impact and is sustainable for local authorities, at least in the way the approaches are currently managed, is however questionable. The extent to which communities, politicians and council officers are engaged and convinced of the purpose and benefits of PB is also mixed. While evidence of positive impact on the