Democracy Spraffa

Levelling Up Partnership Process Update

Argyll and Bute Council · 15 August 2024
Back to Argyll and Bute Council — 15 August 2024 and its agenda

Text extracted from the council's PDF. Layout and reading order may differ from the original.

Original council PDF · Download plain text

Page 1

ARGYLL AND BUTE COUNCIL        COUNCIL 
DEVELOPMENT AND ECONOMIC GROWTH             15 AUGUST 2024 
LEVELLING UP PARTNERSHIP PROCESS UPDATE 
1.0 INTRODUCTION 
1.1 The Levelling Up Partnership funding for Argyll and Bute was announced by
the previous UK Government in the Autumn Statement.  The council received
an update in on the Levelling Up process in April 2024 and since this date
council officers have worked with UK civil servants to inform the selection of
possible projects including identifying possible projects that could be council
led.   This all changed when the UK Government announced a general
election to be held on the 4th of July.  At that point civil servants stopped
engaging with the council and this remains the case at the date of writing this
report.  The new UK Government has dropped the term Levelling Up with the
Department dealing with this agenda renamed Housing, Communities and
Local Government.   
1.2 In the interim period council officers have been reaching out to other Scottish
Council’s that have been awarded Partnership funding and also looking at
manifesto priorities of the new UK Government.  This has resulted in a
number of proposed changes to projects which are now included in Table 1 of
this report.  It should be noted that these projects can only be regarded as
suggestions by the council as it is assumed that the UK Government will still
choose the projects they want to see delivered following a public engagement
process that they carry out as part of the Partnership process.  The council
will also submit to the UK Government previously agreed projects, as listed in
paragraph 3.5. As currently understood, the UK Government will undertake
the full business case work supported by the council as they consider
appropriate. 
2.0 RECOMMENDATIONS 
2.1 Council are asked to: 
a) Note the update within this report and approve the updated list of projects
included in Table 1 (para. 3.3) of this report to be discussed with new UK
Government officials. 
b) Agree to request that officers seek confirmation from the UK Government
that the Levelling Up Partnership monies previously announced are still
available to Argyll and Bute.

Page 2

3.0 DETAIL 
3.1 Following the change in the UK Government the Levelling Up Partnership
process is being revised to reflect UK Government priorities.  The term
Levelling Up will no longer be used but there has been no indication from the
new UK Government that this previously committed funding will be withdrawn. 
In the interim period council officers have been reaching out to other Scottish
Councils who received Partnership funding such as Dundee City Council.  It
was notable that the capital amounts awarded were under the £5m mark and
that elements of revenue funding could also be awarded to support business
innovation, or business growth, for example. It should be noted that keeping
individual project asks under the £5m capital threshold eases the path through
Treasury approval.  It was also notable that projects were led by different
bodies other than the council and that whilst provisional lists of projects had
been agreed with two other councils this was all still subject to a full business
case agreement carried out by the UK Government.   
3.2 Looking at the original long list of projects previously approved by the council
for consideration by the UK Government, it is considered prudent to reengage
with the UK Government with a revised list of possible asks.  This has been
informed by discussions with other councils and looking at the new UK
Government manifesto/Kings Speech where there is a commitment to grow
Scotland’s economy and accelerate the delivery of affordable housing for
example.  These projects are also considered to be deliverable within a
relatively short timetable and have clear demonstrable outcomes which is also
a key requirement of this process.  The availability of match funding is also a
key factor.   
3.3 Table 1. - List of Potential Projects 
Project Title What is it?   Likely Ask? Status Link to
Labour
Manifesto
Helensburgh
Colgrain
Business
Park
Contribution to the building out of
this new business park linked to
HMNB Clyde and engineering
innovation at Colgrain. Contribution
would relate to purchase of site,
utilities and access works plus
dedicated workshop spaces.  This
proposal supports the expansion of
HMNB Clyde at a critical time to
help address MOD and private
sector capacity problems behind
the wire. 
£3m matched
by £7m
commitment
through the
RGD (Outline
business
case
prepared and
under
consideration
by
Governments)
Masterplan
has been
approved
and Outline
Planning
Consent
granted. 
Supporting
Scotland’s
Economic
Growth

Page 3

Former
Royal Hotel
Rothesay,
Bute
To restore a valuable heritage
building in a prominent position in
Rothesay town centre on the island
of Bute; To create through a
public/private sector partnership
new homes including key worker
housing; tourist accommodation
and commercial space. 
£4m matched
by £1m from
Strategic
Housing
Fund/Private
funds and
Historic
Environment
Scotland.
New Non
Profit Trust
created;
Supporting
Scotland’s
Economic
Growth;
Housing
delivery and
supporting
communities
Oban Airport
Aviation
Business
Park
To contribute to the construction of
2 key buildings that form part of
phase 2 of the Oban
Airport  Business Park.  Two private
sector businesses have signed
Heads of Terms to occupy the
buildings and the project also
complements the proposed UAV
hub funded through RGD.
£5m
matching TIF
funding;
prudential
borrowing
and RGD
UAV Hub
£4m.
Land in
control;
business
case work
partly
completed
and detailed
planning
consent for
two
buildings
including
UAV Hub. 
Supporting
Scotland’s
Economic
Growth
through
innovation
European
Marine
Science Site
Phase 2
This is a key strategic priority
project for HIE. The strategic vision
for the development is here:
240117-emsp-the-vision.pdf
(europeanmarinesciencepark.co.uk)  
The development of Camas House,
the second business
office/laboratory development on
the site specifically developed to
support business growth in the
marine economy.  This will directly
support boosting productivity, local
pay, jobs and living standards by
growing the private sector. This
project complements SAMs with the
building acting as an incubator for
blue economy businesses.  
£1.6m to fit
out floor of
EMSP
matched by
£8m from HIE
Full
Planning
consent
granted with
building
expected on
site in
August 24;
proposal
relates to
fitting out of
one floor
which has
not been
included in
tender. 
Supporting
Scotland’s
Economic
Growth
through
innovation
Graduate
Placement
Programme
Graduate Placement Programme
providing graduate placement
grants covering staff, training and
travel costs. 
£250k adding
to existing
scheme
administered
by HIE of
£180k
Expands a
current
scheme
administered
by HIE
helping
employ
graduate
posts to
boost
Supporting
Scotland’s
Economic
Growth
through
improving
productivity
and
innovation

Page 4

business
productivity
SME
Business
Development
Package
Business Development Package for
local SMEs, providing enhanced
start-up, recovery and growth
support comprising small business
development grants, specialist
advice and intensive support
programmes delivered by Business
Gateway, Economic Growth.  It is
anticipated that businesses
supported by the small business
development grants will enable a
26% uplift in the number of jobs
created. 
£250k adding
to a £480k
UKSPF
package
SMEs make
a substantial
portion of
Argyll and
Bute’s
business
base;
Building on
a successful
programme
of work
delivered
through
UKSPF this
fund can
expand
activity with
a focus on
business
productivity
and
innovation
Supporting
Scotland’s
Economic
Growth
through
improving
productivity
and
innovation
Community
Digital Hubs
Creating inclusive digital hubs in
rural communities with restricted
access to digital technology.
£400k
expanding
existing
network of 4
hubs
established
on island
communities
(located
within existing
community
run  assets)
helping
people to
access
private and
public
services
Successful
pilot has
established
a need to
roll out these
facilities to
enable local
communities
equal
access to
superfast
broadband
facilities
Supporting
Scotland’s
Economic
Growth
through
innovation
Derelict
Building
Repurposing
Fund
A grant fund to assist private
building owners to undertake
improvements to commercial
properties to bring back into
productive use.
£500k  match
funded
through
£150k per
annum fund
linked to NDR
recovery now
applied to
derelict
buildings
Fund
protocols
established
through the
approval of
a new
initiative to
tackle
derelict and
underutilised
Supporting
Scotland’s
Economic
Growth by
bringing
derelict
buildings
back into
productive
use.

Page 5

buildings
and bring
them back
into use by
the
community,
for housing
or
commercial
activity. 
Affordable
Housing For
Key Workers
Adding scale to our work
associated with the Housing
Emergency to build affordable
housing for key workers on a
number of sites across Argyll and
Bute. Argyll and Bute was the first
council in Scotland to declare a
housing emergency with a lack of
key worker housing a critical issue
for the future of our area.
£5m adds to
£3.7m
RGD/Island
Infrastructure
fund and
other works
we are taking
forward on
our islands
including Islay
and Mull.
Scaling up
impact of
RGD Key
Worker
Housing
Initiative
Supporting
Scotland’s
Economic
Growth
through
provision of
key worker
housing             
3.4 The above projects will be used as a basis of a new discussion with the UK
Government when they decide to reengage with the council.  A letter has
already been drafted by the Leader of the Council to highlight the need for
further investment in Argyll and Bute to grow our economy and address
identified infrastructure needs.  It is not clear at the time of writing this report
that if the funding remains in place, whether the same process of engagement
would continue.  Discussions will also continue for possible policy
interventions which was also a feature of the original fund.   
3.5 It should be noted that the council will also submit the previously agreed
council backed projects with the UK Government.  Given advice received
these will be considered as stand-alone projects.  Additional external funding
opportunities will also be pursued. These projects include the following:- 
• Rothesay Pavilion where the council is continuing to pursue funding
with both Governments and key partners linked to the delivery of the
Rural Growth Deal. 
• The Dunbeg Corridor where detailed planning permissions have
recently been submitted with the council looking at a number of
strategic housing funds and also TIF funding working with the Scottish
Government and housing providers. 
• The Marine Training school and Seaweed Academy is being
pursued through the RGD and the timescales of delivery does not
coincide with this particular funding opportunity.  That said, we are
pursuing the fitting out of a new building shortly to go on site at the

Page 6

European Marine Science park at Dunbeg working with HIE who are
the project sponsors. 
• Dunoon Regeneration is also being pursued looking at various
options to prioritise investment.  The level of funding required here as
previously identified exceeds the capital limits applied to this particular
funding opportunity however the council remains open to further
dialogue with both Governments.  
• Campbeltown Pier expansion remains a possible commercial
opportunity for the council however it remains at an early stage of
development and it is linked to private sector feasibility studies linked to
renewables and the whisky industry that are ongoing.  
• Islay and Jura we have modified the ask via a competitive funding
request to Scottish Government as part of the Islands Infrastructure
fund to cover feasibility work in connection with the replacement ferry
given delivery timescales associated with this potential project.  In
terms of the possible roads investment on Islay linked to industry
growth this remains a council aspiration linked to possible policy
interventions from the UK Government harvesting an element of
income generated on the island.   
It should also be noted that any project ideas submitted by the council to
the UK Government have no guarantee of being selected and are all
subject to detailed business case development by the UK Government
with council inputs as appropriate.  Other projects may also emerge at the
discretion of the UK Government and public consultation if this remains a
part of the fund going forward.” 
4.0 CONCLUSION 
4.1  The original UK Levelling Up Partnership process was proceeding as
previously reported to council in April until the UK General Election was called
and subsequently held on the 4th of July. The term Levelling Up has now been
dropped by the new UK Government with an increased emphasis on Local
Government, boosting economic growth across the UK and accelerating the
delivery of new housing.   
4.2 In the interim period council officers have been speaking to other Scottish
Councils in receipt of Levelling Up Partnership funding and examining the new
UK Government economic priorities as demonstrated in their manifesto and
Kings Speech.  This has informed an adapted list of possible projects for
consideration by Members to form a basis of discussion with the new UK
Government.  That said the council will continue to bring to the UK
Government’s attention previously identified projects listed in paragraph 3.5. It
should be noted that there is no guarantee that any of these projects will be
supported by the UK Government as they will likely undertake their own public
consultation and new projects may emerge from other public agencies and
community groups.  Council Officers will also continue to pursue external
funding sources both for the amended list, and for the previously agreed
identified projects.

Page 7

4.3 As further details emerge of the new process to deliver a £20m investment in
Argyll and Bute Members will be kept informed via further reports and/or
briefings as appropriate.  Members are asked to consider and endorse the
new list in Table 1 as they see appropriate to do so. 
5.0 IMPLICATIONS
5.1 Policy – The Levelling Up Partnership funding has the potential to support a
number of council priorities included in the Single Outcome Agreement (SOA)
and Economic Development Strategy and Action Plan support the sustainable
growth of our economy.
5.2 Financial – None arising from this report although it concerns a £20m capital
potential investment plus possible policy interventions.
5.3  Legal – None arising from this report. 
5.4  HR – None arising from this report.
5.5  Fairer Scotland Duty: 
5.5.1  Equalities - the report explains a process that can help support the
economy of our areas generating employment opportunities. 
5.5.2  Socio- Economic Duty – the projects identified will enhance outcomes
for those experiencing socio-economic disadvantages. 
5.5.3  Islands – projects have been identified on our islands for member’s
consideration.
5.6 Climate Change – Each project will require to have regard to climate change
implications. 
5.7 Risk – Our rural economy is fragile and failing to deliver this external investment
would be a considerable concern.
5.8 Customer Service – No specific implications, but all projects identified will
impact positively on our customers / communities.
5.9 Rights of the Child (UNCRC) – No implications arising from this report. 
Councillor Jim Lynch, Leader of the Council 
For further information contact: 
Fergus Murray, Head of Development and Economic Growth 
Fergus.Murray@argyll-bute.gov.uk 
Kirsty Flanagan, Executive Director with responsibility for Development and
Economic Growth

Page 8

July 2024