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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.  
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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: 
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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
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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. 
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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.
√
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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.  
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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 
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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 
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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.
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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. 
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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
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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
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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.
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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
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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. 
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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 
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July 2024
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