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Argyll and Bute Council · 15 August 2024
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Argyll and Bute Council Comhairle Earra-Ghàidheal Agus Bhòid Executive Director: Douglas Hendry Kilmory, Lochgilphead, PA31 8RT Tel: 01546 602127 Fax: 01546 604435 DX 599700 LOCHGILPHEAD 8 August 2024 NOTICE OF MEETING A Special meeting of ARGYLL AND BUTE COUNCIL will be held ON A HYBRID BASIS IN THE COUNCIL CHAMBER, KILMORY, LOCHGILPHEAD AND BY MICROSOFT TEAMS on THURSDAY, 15 AUGUST 2024 at 10:00 AM, which you are requested to attend. Douglas Hendry Executive Director BUSINESS 1. APOLOGIES FOR ABSENCE 2. DECLARATIONS OF INTEREST (IF ANY) 3. ARGYLL AND BUTE COUNCIL VISITOR LEVY (Pages 3 - 12) Report by Executive Director with responsibility for Development and Economic Growth 4. LEVELLING UP PARTNERSHIP PROCESS UPDATE (Pages 13 - 20) Report by Executive Director with responsibility for Development and Economic Growth Argyll and Bute Council Contact: Hazel MacInnes Tel:01546 604269 Public Document Pack
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ARGYLL AND BUTE COUNCIL COUNCIL DEVELOPMENT & ECONOMIC GROWTH 15TH AUGUST 2024 ARGYLL AND BUTE COUNCIL VISITOR LEVY 1.0 INTRODUCTION 1.1 The purpose of this paper is to provide elected members with an update on the progress of the Visitor Levy (Scotland) Bill, the key implications of the Bill as it now stands and the next steps the Council needs to take to implement the levy, assuming the Council takes the formal decision to introduce one. 1.2 The main premise of the Bill is to allow local authorities to introduce a visitor levy scheme as follows: • the payment of a levy on the purchase of overnight stays in certain types of accommodation (see Appendix A); • the amount of the levy will be a percentage (set by each participating local authority) of the cost of the accommodation; and • the person liable to pay the levy is the person who provides the accommodation. 1.3 A key issue will be the need for the Council to declare it is intending to introduce a levy and the need for the Council to undertake a public consultation. It should be noted that Stage 3 of the Bill confirmed that the Council will not be able to introduce a levy until early autumn 2026 at the earliest, given the required 18-month lead-in time for levy implementation following confirmation by the Council that it intends to introduce a visitor levy coupled with the publication of the consultation report. 1.4 To take the work forward, it is proposed that a Visitor Levy Short Life Working Group (VLSLWG) is established as set out in this report. An Officers’ Working Group will be established to work up a Visitor Levy proposal (to include staff from Economic Growth, Finance, Revenues and Benefits and ICT) and the formal consultation process for discussion and direction at the VLSLWG. 1.5 Each local authority has a statutory duty to establish a Visitor Levy Forum. Forums must be established by local authorities no later than six months after the date of the decision to introduce a visitor levy scheme. The local authority must maintain the Forum for the duration of the scheme and meets on a regular basis. It is proposed that a Shadow Visitor Levy Forum is established in Argyll and Bute to support with advisory input for the pre-consultation tasks as detailed in Table 1 in the report. Page 3 Agenda Item 3
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2.0 RECOMMENDATIONS 2.1 Members are asked to: • Consider the content of this paper including the next steps the Council needs to take summarised in Table 1 of this report. • Approve Argyll and Bute Council’s intention to introduce a Visitor Levy and undertake a public consultation as noted in Table 1. • Approve the establishment of a Visitor Levy Short Life Working Group (VLSLWG) with the terms of reference as set out at paragraph 3.8 hereof. • Agree the membership of the VLSLWG including the Chief Executive and two Executive Directors who shall be supported by officers as appropriate. • Appoint a Chair and Vice Chair who shall be elected Members; • Approve the proposal to establish a Shadow Visitor Levy Forum at the local level to provide advisory support for the pre-consultation work prior to the establishment of the formal Visitor Levy Forum as outlined in Table 1. 3.0 DETAIL 3.1 The Bill has now progressed through Stage 3 (28th May 2024) and is awaiting Royal Assent before becoming law. It is estimated Royal Assent will take place approximately one to two months after Stage 3 and then a further period to allow the Bill to be enabled as the Visitor Levy (Scotland) Act 2024. Given the Scottish Parliament’s summer recess it is anticipated this will happen in September 2024. A number of amendments to the Bill have now been made and work is continuing to understand all the implications of these amendments. 3.2 The Bill will also be accompanied by a guidance document that has been prepared by an Expert Group, chaired by VisitScotland. It is imperative for all local authorities to adhere to the operational aspects, including statutory timelines and processes that will be outlined in the guidance, which is due to be published in late August/early September 2024 (no date confirmed at time of writing this report). 3.3 In developing an outline for a visitor levy scheme, a local authority should draw a clear link to the ambitions/objectives of its local tourism strategy. The Argyll and Isles Strategic Tourism Partnership strategy (AISTP: an industry led strategy) was developed with input from Argyll and Bute Council, Argyll and Isles Tourism Co-operative, Highlands and Islands Enterprise and VisitScotland. The latest strategy was published in March 2024 to address tourism specific topics and is due to be refreshed over the autumn and winter period of 2024 with a view to launching a new strategy in the spring of 2025 where it is anticipated there will be a continued focus on the current strategic priorities: Page 4
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• Extending the season and spreading visitors across the destination, • Reaching new audiences, • Marine and coastal Tourism, • Improving the offer, and • The journey towards net zero. 3.4 The date on which a visitor levy scheme is to come into force, or on which a significant modification is to take effect, must be at least 18 months after the date on which the local authority publishes its consultation report stating that it intends to proceed with the original or modified proposal. At present, no local authority will be able to start the collection of the levy prior to late summer/early autumn 2026. 3.5 There are many factors that require reference to the detailed guidance to accompany the Act. Local authorities through Highlands and Islands Regional Economic Partnership (HIREP) Visitor Levy Officer’s Working Group (chaired by the Economic Growth Manager, Argyll and Bute Council) and other bodies such as the Scottish Local Authorities Economic Development (SLAED) Tourism Group, continue to work on the implications of the introduction of a visitor levy and the best way on how to implement it. 3.6 Some initial conservative estimates of the annual income to be realised from the visitor levy based on Scottish Tourism Economic Activity Monitor (STEAM) visitor accommodation spend data (only includes businesses that complete STEAM returns) are as follows: • 1% VL circa £1,877,782 of income per annum • 2% VL circa £3,755,563 of income per annum • 3% VL circa £5,633,345 of income per annum • 4% VL circa £7,511,126 of income per annum. 3.7 The Bill sets out a series of steps that a local authority must do before introducing a visitor levy. It must: • Prepare and publicise: ➢ An outline of the proposed scheme; ➢ A statement about the cases and circumstances in which the levy is not payable or can be reimbursed; ➢ A statement about the objectives of the proposal, including measuring and reporting on these; and ➢ An assessment of the impacts of the proposed levy in the council area (for Argyll and Bute consideration needs to be given to the impact on island communities, costs of travel already high, compared with mainland accommodation providers). • Consult tourism businesses and organisations. It must also consult with community representatives and National Parks if it covers part or all of the local authority area. • Prepare and publicise a report on the responses to the consultation, which Page 5
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also includes a statement on whether or not the Council wishes to proceed with introducing or modifying a visitor levy. • Create a Visitor Levy Forum no later than six months after the date of its decision to introduce a levy. The functions of the Visitor Levy Forum are: ➢ To advise and consult with the Council on any consultation from other bodies with the Forum, ➢ To discuss any modifications to the scheme, and ➢ To consult, but not decide, on the use of the net proceeds of the visitor levy. • The Visitor Levy Forum is to consist of a reasonable balance of members and the Council may not form a majority of the Forum. 3.8 Given the amount of preparatory work which will be required to develop proposals and the timescales involved, particularly for consultation, a mechanism needs to be put in place to move matters forward in a flexible and agile manner which would facilitate the submission of a further report to the Council in November this year. It is proposed that this should be done by establishing a Short Life Working Group which is permissible in terms of the Council’s Political Management Arrangements (Constitution, Part C, para 2.6). The Terms of Reference should include: The purpose of the VLSLWG to undertake the development of a draft Visitor Levy Scheme, to include, among other things; • clear objectives for that scheme; • proposals for the use of the proceeds of that scheme; and • a Consultation / Engagement Strategy and all while having regard to the impact statements to be developed and provided by officers. The agreed membership of the VLSLWG complete with the roles and responsibilities of each of the members, including the appointment of a Chair and Vice Chair who shall be elected Members. An agreed series of VLSLWG meetings and reporting requirements as follows: • report to Council in November 2024 on all matters encompassed within the terms of reference. • engage with officers, Visitor Levy Shadow Forum and others in regard to findings from the Consultation / Engagement Strategy and submit a further report with analysis / recommendations to Council in March 2025. Page 6
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3.9 Table 1 below outlines an indicative timeline for the establishment and implementation of a visitor levy including the key Council meetings. (Please note the timescale may change, subject to that to be presented in the final guidance document to be published in late August/early September 2024). Table 1: Indicative Timeline of Visitor Levy (VL) Implementation Requirements Indicative Timeline Activity Statutory Requirement Pre-consultation work Ongoing Councils to engage with stakeholders to determine proposal (to take place across the development of a VL Scheme). √ July 2024 Establish an internal VL Officers’ Working Group (OWG) as approved by ELT on 2nd July 2024. Aug 2024 Paper to a Special Council meeting on 15th August to seek approval for the establishment of a VL Short Life Working (VL SLWG) Group and a Shadow VL Forum. Aug/Sept 2024 Publication of finalised visitor levy guidance by VisitScotland. Aug to Sep 2024 Objectives of visitor levy scheme (aligned to the AISTP strategy) to be developed by VL OWG in liaison the VL SLWG and Shadow VL Forum. √ Sep to Oct 2024 Impact studies to be completed as required by VL OWG working with the VL SLWG. √ Oct 2024 Design of a Visitor Levy scheme proposed. Oct 2024 Plans for use of net proceeds of the scheme to be developed (link to Use of Funds section of the VL guidance). Nov 2024 Agreement of VL scheme, consultation content and process by Argyll and Bute Council at the full Council meeting on 21st November 2024. Formal Consultation Nov 2024 – end Jan 2025 Public consultation on visitor levy proposal √ Feb 2025 VL OWG analyse findings working with the VL SLWG and input from the Shadow VL Forum, as appropriate. Mar 2025 Report to a Special Council meeting in March 2025. Governance Requirements Mar/Apr 2025 Formal public announcement of decision to introduce a visitor levy (include visitor levy start date in 2026). √ Apr 2025 Scottish Ministers to be notified of decision to introduce a visitor levy across Argyll and Bute. √ Date in Apr 2025 18-month minimum lead-in time begins. √ Apr 2025 Establish the formal Visitor Levy Forum (advisory function) to be maintained for the duration of the scheme (meet at least two times per calendar year). √ Apr 25 – Oct 2026 Lead-in time takes place. √ May 2025 Councils to advise businesses of their liability and prepared administration of visitor levy scheme. Oct 2026 Visitor levy is collected from visitors who stay overnight as described in month 18. √ Page 7
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3.10 A local authority operating the visitor levy must prepare annual reports that: • Detail the amount of money collected, • How the proceeds have been used, • The performance of the scheme in relation to the local authority’s original statement of intent, and • The report must be reviewed by the Visitor Levy Forum. 3.11 Argyll and Bute Council (Revenues and Benefits Manager and colleagues) along with the City of Edinburgh Council and The Highland Council, is working closely with the Digital Office and Improvement Service on the requirement for establishing a standard digital platform for a standard visitor levy collection process across Scotland. The proposal is for these three early adopter local authorities (possibly City of Glasgow too) to contribute to the build costs of circa £557k which will be recouped from one-off payments made by other councils that join later. It is anticipated that through discussions with COSLA, the Scottish Government will be approached to provide a contribution to fund the required digital platform. 4.0 CONCLUSION 4.1 Stage 3 of the Visitor Levy Bill has passed through the Scottish Parliament with a number of amendments to the original Bill that officers are still examining to determine any further implications for the Council. 4.2 The Bill is awaiting Royal Assent and it is estimated that this will take place approximately one to two months after Stage 3 and then a further period to allow the Bill to be enabled as the Visitor Levy (Scotland) Act 2024. Given the Scottish Parliament’s summer recess it is anticipated this will happen in September 2024. 4.3 The key statutory and non-statutory activities to be undertaken by the Council and the proposed VLOWG, VLSLWG and Shadow VL Forum are outlined in Table 1 of this report with indicative timelines. Further detailed Scottish Government guidance (prepared by VisitScotland) is awaited on the process and any amendments will be shared with the VLSLWG and Shadow VL Forum in the first instance. 4.4 Officers will continue to work with the likes of the Improvement Service, other councils and HIREP to ensure the visitor levy is implemented as efficiently as possible subject to Argyll and Bute Council approval. 5.0 IMPLICATIONS 5.1 Policy: the visitor levy will become law following Royal Assent of the Visitor Levy (Scotland) Bill. Argyll and Bute Council will need to agree to implement a visitor levy. Page 8
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5.2 Financial: as an early adopter, the Council will be required to make an initial contribution to the build costs for the proposed digital platform, which will be recouped. The implementation of the levy could generate a substantial yearly income for Argyll and Bute Council subject to scrutiny from the Visitor Levy Forum. Some initial conservative estimates of the annual income to be realised from the levy range from circa £1.9m per annum for a 1% visitor levy to £7.5m per annum if a 4% visitor levy on accommodation was introduced. 5.3 Legal: all appropriate legal implications will be taken into consideration. 5.4 HR: the VLSLWG once formed will be supported by officers and members of the Shadow VL Forum. 5.5 Fairer Scotland Duty: the Fairer Scotland Duty, Part 1 of the Equality Act 2010, came into force in April 2018. The duty places a legal responsibility on particular public bodies in Scotland, such as Argyll and Bute Council, to pay due regard to (actively consider) how they can reduce inequalities of outcome, caused by socio-economic disadvantage, when making strategic decisions and how this has been implemented. 5.5.1 Equalities: none. 5.5.2 Socio-economic Duty: none. 5.5.3 Islands; the same visitor levy scheme, with the same percentage rate charged for overnight accommodation will cover the whole of Argyll and Bute, including accommodation providers on the islands. It is anticipated that this nominal rate will not disproportionately impact island accommodation providers any more than those based on the mainland throughout the region. 5.6 Climate Change: none. 5.7 Risk: there is a risk that the Council does not implement the visitor levy process in adherence to the Scottish Government timelines which could delay implementation. 5.8 Customer Service: there is a need to implement an efficient visitor levy process that is transparent and easy to use by our customers. 5.9 The Rights of the Child (UNCRC): none. Kirsty Flanagan, Executive Director responsible for Economic Growth Councillor Jim Lynch, Leader of Argyll and Bute Council 1 August 2024 Page 9
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For further information contact: Fergus Murray, Head of Development and Economic Growth fergus.murray@argyll-bute.gov.uk Ishabel Bremner, Economic Growth Manager ishabel.bremner@argyll-bute.gov.uk APPENDICES Appendix A: Types of Accommodation Page 10
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APPENDIX A: TYPES OF ACCOMMODATION The types of accommodation included within in the scope of the legislation are as follows: • Hotels • Hostels • Guest houses • Bed and breakfast accommodation • Self-catering accommodation • Camping sites • Caravan parks • Accommodation in a vehicle, or on board a vessel, which is permanently or predominantly situated in one place. • Any other place at which a room or area is offered by the occupier for residential purposes otherwise than as a visitor’s only or usual place of residence. The definition does not include local authority gypsy/traveller sites, registered social landlord gypsy/traveller sites or accommodation in a vehicle, on board a vessel that is undertaking a journey involving one or more overnight stops. Scottish Government Ministers may amend the Act to change the type of accommodation covered, vary the description of the accommodation type, or remove a type of accommodation. Before making any of these changes, Ministers must consult: • Local authorities • Representatives of communities, businesses engaged in tourism and tourist organisations. • Other persons they consider appropriate. Any changes proposed to accommodation types by Ministers would need to be approved by the Scottish Parliament. Page 11
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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 13 Agenda Item 4
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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 14
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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 15
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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 16
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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 17
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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 18
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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 19
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