Transformational Projects and Regeneration Team - Large Scale Project Update Report
Argyll and Bute Council · 11 September 2025
Back to Environment, Development and Infrastructure Committee — 11 September 2025 and its agenda
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ARGYLL AND BUTE COUNCIL ENVIRONMENT, DEVELOPMENT AND INFRASTRUCTURE COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 11 SEPTEMBER 2025 TRANSFORMATIONAL PROJECTS AND REGENERATION TEAM – LARGE SCALE PROJECT UPDATE REPORT 1. EXECUTIVE SUMMARY 1.1 The purpose of this report is to update the Environment, Development and Infrastructure Committee on current progress of the large-scale, externally funded project work of the Transformational Projects and Regeneration Team, and to highlight key issues that may impact on the successful delivery of projects. 1.2 The last update report was considered by Environment, Development and Infrastructure Committee in March 2025. 1.3 The team is currently responsible for the delivery and or management of projects and associated grants with a cumulative value of over £100m. The associated grants the team manages are listed in Appendix A. It should be noted that following completion of each project, the team continues to have the responsibility for the monitoring and final drawdown and reporting up until the end of the 12-month defects period or beyond depending on conditions on the respective grant contracts. 1.4 From April 2024, The Transformation Projects and Regeneration Team also includes responsibility for delivery of the Council’s Rural Growth Deal (RGD) Programme. This follows the merging of this team with the RGD Programme Management Office (PMO) following the retirement of the previous Transformation Projects and Regeneration Manager. 1.5 The team are also leading on the emerging Community Regeneration Partnership Funding (CRP) from the UK Government. This funding replaces the Levelling Up Partnership programme and totals £20.34m for Argyll and Bute with all funding requiring to be fully committed by 2026/27. It is anticipated that the UK Government will officially confirm projects to be funded via the CRP programme in September 2025. 1.6 The Council welcome the Scottish Governments commitment to continue both the Regeneration Capital Grant Funding (RCGF) and Place Based Investment (PBI) funding in 2025/26 following their suspension by the Scottish Government in 2024/25 due to budget challenges. Further detail of successful projects is included in paragraph 4.8 of this report.
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1.7 Members are asked to note that the grant funding landscape and delivery of capital projects remains extremely challenging due to cost of living issues, budget and resource constraints however, the Transformation Projects and Regeneration Team will continue to respond to emerging Government policy priorities and future external grant, funding opportunities. RECOMMENDATIONS It is recommended that the Environment, Development and Infrastructure Committee:- i. Consider the current progress contained within the report. ii. Note that further updates relating to pending funding bids will be brought back to the Environment, Development and Infrastructure Committee in due course to update Members.
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ARGYLL AND BUTE COUNCIL ENVIRONMENT, DEVELOPMENT AND INFRASTRUCTURE COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 11 SEPTEMBER 2025 TRANSFORMATIONAL PROJECTS AND REGENERATION TEAM – LARGE SCALE PROJECT UPDATE REPORT 2.0 INTRODUCTION 2.1 This report sets out the current position of the large-scale projects, which are currently being delivered on the ground, or have secured external grant funding that are managed by the Transformational Projects and Regeneration Team. 2.2 The Transformational Projects and Regeneration Team sits within the Council’s Development and Economic Growth Service and works region-wide. The team has a particular focus on ‘place’, heritage regeneration, the creative industries, renewables and Islands and manages a diverse range of capital projects and external grants. The team works closely with colleagues across the Council, communities, businesses, public agencies, third sector organisations, town centre heritage building owners and the owners of vacant business property to realise positive change for our communities. 2.3 From April 2024, The Transformation Projects and Regeneration Team also includes responsibility for delivery of the Council’s Rural Growth Deal (RGD) Programme and are leading on the emerging Community Regeneration Partnership (CRP) Funding from the UK Government. 2.4 CRP funding replaces the Levelling Up Partnership programme and totals £20.34m for projects in Argyll and Bute with funding to be fully committed by 2026/27. 2.5 The team’s work broadly includes the following areas:- • Developing and submitting bids to secure external funding of various scale through a competitive process, such as the new Heritage and Place Programme, previously referred to as the Conservation Area Regeneration Scheme (CARS) programmes; • Development and delivery of regeneration projects with a particular emphasis or theme, such as the suite of measures to encourage shopping locally; • Development and delivery of several place-based engagement projects, working in partnership with the community and key partners, leading to action plans, such as charrettes, and working with communities to realise these community ambitions; • Development of the economic opportunities for Argyll and Bute across Film, Creative Industry and Renewable sectors, with the objective of
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securing income into the area and delivering local economic benefit, including support to community organisations working across these sectors. This work also includes the setting up and management of the Argyll and Bute Renewable Alliance (ABRA) with partners in HIE; • Support to third sector organisations involved in the delivery of their own individual community led economic regeneration projects, as well as support to third sector organisations delivering regeneration focused projects where Council funding is involved and/or where projects align with Council outcomes, such as Regeneration Capital Grant Funded (RCGF) project funding; • Drafting and submitting external funding bids to competitive calls such as the Island’s Programme, RCGF and Carbon Neutral Islands Programme; • Development and administration of the Argyll and Bute Council’s Strategic Events and Festivals Fund for which 12 grants have been awarded for Round 7 (2025/26); • Progressing the offer to host the 2028 Royal National Mòd (RNM); • Overseeing the delivery programme and financial administration of projects supported through funding from Scottish Government, such as annual Crown Estate (CE) funding and the Place Based Investment Programme (PBI); • Working closely with the SG Islands team and working with colleagues and communities in the development of bids to the Islands Programme (IP) and associated Carbon Neutral Islands funding. • Supporting the owners of empty business properties through grant aid funded by NDR income. • Development and delivery of projects within the Council’s RGD programme and Community Regeneration Partnership. 2.6 This paper also seeks to report on key issues that may impact on the current status of each project, such as any amendments to project scope or timeframe. 2.7 The large-scale projects currently in delivery, either directly by the team, colleagues across the Council or by a third party and where the team is responsible for managing the associated grant, are included within the table in Appendix A, and have a cumulative total value of over £100m. The individual projects being taken forward under PBI and CE are not listed individually in Appendix A. 3.0 RECOMMENDATIONS 3.1 It is recommended that the Environment, Development and Infrastructure Committee:- i. Consider the current progress contained within the report. ii. Note that further updates relating to pending funding bids will be brought back to the Environment, Development and Infrastructure Committee in due course to update Members.
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4.0 DETAILS 4.1 The following sections summarise the progress associated with each of the large- scale projects that are currently in delivery or have grants managed by the Transformational Projects and Regeneration Team. In addition, the report provides information on annual funding streams received by the Council and managed by the team as well as annual competitive external funding grants secured and being managed. The individual projects are listed in Appendix A with the exception of those individual projects supported through PBI and CE. HERITAGE LED REGENERATION PROJECTS 4.2 Rothesay Regeneration Following a decade of Townscape Heritage Initiatives, and £7.5m investment in the town centre, regeneration effort continues to tackle dereliction in Rothesay. The Transformation Projects and Regeneration Team are actively supporting efforts to address key landmark buildings including:- • £9m of RGD funding allocated to Stages 2 and 3 of Rothesay Pavilion. • Supporting local social enterprise with funding applications to HES, a condition survey and business plan for the Royal Hotel; • £40k of CE funding allocated for demolition of vacant building on Albert Pier. A further £100k of funding allocated via PBI for resurfacing and lining works on Albert Pier with a focus on enhanced parking for coaches. • Up to £4m of funding via the UK Government’s Community Regeneration Partnership to support the regeneration of the Royal Hotel in Rothesay (subject to approval of UKG). Partnership project with George Hanson, HIE, and UKG. Funding application made to Scottish Governments Islands Programme for £400k to support pre-construction phases of this project. 4.3 Helensburgh CARS (2021 – March 2026) Helensburgh CARS is a £2.4m project in final year of delivery. The partnership project is funded by Argyll and Bute Council (£500k) and HES (£1.24m) with owner's personal contributions completing the funding. A fully funded project officer is employed to deliver the project for its duration, and the project also supports a modern apprentice. Works to the first two priority buildings commenced on site in September 2024 and will be completed later this year. Works to the third and fourth priority buildings, at the time of writing this report, are due to commence in August 2025. One small repair grant has also been awarded to refurbish the windows in the Grade A listed Macintosh Club and another for roof and amenity deck repairs to make several commercial properties within 22-34 Sinclair Street watertight. Two shopfronts are complete. Two lime mortar training courses have been held, and a modern apprentice position was filled in September 2024. An online
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webinar co-hosted with Under One Roof aimed at property owners in Helensburgh is scheduled for October 2025. This will give expert advice and guidance on owner's associations, common repairs and how to deal with issues that arise from absent owners and missing shares with a Q&A session. 4.4 Lochgilphead CARS (2020 – Mar 2026) Lochgilphead CARS is a £2.2m partnership project with HES (£969,700) in its sixth year of delivery. The project is due to conclude in March 2026. Four priority building projects have been completed and work is progressing well on another two. A number of small repair grant/shopfront improvement projects have also been delivered. This includes three significant shopfront reinstatement projects that were completed in July. Local stakeholders are benefiting from a number of traditional skills training courses and educational activities that have been funded and delivered via the scheme. This includes; specialist training in Lochgilphead for local contractors and building professionals; traditional skills Demo Days for local school pupils and a Shop Window Art Project delivered in partnership with a local artist and Lochgilphead High School. 4.5 Tarbert Heritage Regeneration Scheme (TBC) Project status On 26 June 2025, Council agreed that applications be submitted to National Lottery Grants for Heritage (NLHF), and Historic Environment Scotland’s (HES), Heritage and Place Programme (HPP), for a 5-year Tarbert Heritage Regeneration Scheme. Bids will be submitted on 6th and 29th August 2025 respectively, with decisions expected in January 2026. Both are subject to a competitive process and as such a delivery phase is not guaranteed. The application to NLHF is for £850,000 and the application to HES is for £999,997. WIDER REGENERATION FOCUSED PROJECTS 4.6 Tarbert / Lochgilphead Regeneration Fund In its 2016/17 budget, Council allocated £3m from reserves to support regeneration and economic development in the settlements of Tarbert, Lochgilphead and Ardrishaig. 6 projects were identified to proceed to Full Business Case (as ratified by Policy and Resources Committee on 19th October 2017). The following projects are complete: • Gleaner (Phase 1 only) - completed summer 2019. • Tarbert Harbour – shore side facilities completed in May 2019, car park completed in March 2021. • Barmore/Garvel Road junction improvements - completed February
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2020. • Colchester Square/Argyll Street, Lochgilphead – completed May 2021. • Lochgilphead Front Green – completed August 2022. • Ardrishaig North Public Realm – completed April 2023. The only remaining allocation of funding relates to a second phase of development on the former Gleaner Oil site in Ardrishaig. This funding totals £250,000 and we have had discussions with Scottish Canals about bringing forward a business case for approval 2025/26. Scottish Canals are in negotiations with a potential private sector developer which could result in a significant private sector investment for this part of Ardrishaig. 4.7 Regeneration Capital Grant Funding (RCGF) An update on the current RCGF projects is provided below and is followed by a table of all current grant contract awards (Table 1) • Port Ellen Community Hub, Islay – the additional funding, reported in the last update, has enabled works to recommence and the project is progressing towards completion, expected late Summer 2025. • Kilmory Business Park, Lochgilphead – work is progressing with M&K MacLeod on the proposed Kilmory Business Park. Works are on site and are expected to be completed in December 2025. This public investment has also attracted signficant private sector investment. • Aros Waterfront Development, Mull – outdoor activity hub – a contract was awarded in January 2024 and works are ongoing. Table 1 – RCGF Grant Projects RCGF Project Grant Awarded Year Awarded Balance Remaining / Yet to Drawdown Port Ellen Community hub, Islay £1,046,223 2021/22 £0 Kilmory Business Park in Lochgilphead £829,000 2021/22 £581,988 Ulva Ferry Shore Facilities Building - Doras Caolas Ulbha £602,590 2022/23 £3,671 Aros Waterfront outdoor activity hub £403,500 2023/24 £0 Nonhebel Light Industrial Park Expansion £654,000 2023/24 £1,948 Fyne Futures Local Food Production and Training Centre, Bute £250,000 2025/26 £250,000 Isle of Luing Community Owned Slate Quarry £1,747,936 2025/26 £1,747,936 The following stage 1 expression of interest applications were submitted to the Scottish Government in June 2025 for consideration for RCGF funding in 2026/27. It should be noted that the RCGF funding process is undertaken in 2
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stages. Projects that are successful at Stage 1 will go forward to the more detailed Stage 2 application process for submission in Autumn 2025. Table 2: RCGF 2026/27Stage 1 Funding Bids Project Value Lead Organisation Kintyre Sea Sports £800,000 Kintyre Sea Sports Lighting Up the Shore Station - A Sustainable Hub for Tiree £760,000 The Hynish Trust Nonhebel Park (Final Phase) £595,000 MICT Sonas Childcare £900,000 South Islay Development Tarbert Harbour Community Water Sports and Activity Hub £850,000 Tarbert Harbour Authority Tighnabruaich Community Refuelling and Business Hub £120,000 The Tighnabruaich District Development Trust The confirmation of potential RCGF monies in 2026/27 is welcome as this has been an important source of external capital funding for both the Council and community projects over the past decade. We await further notification as to whether RCGF funding will be available in future years. 4.8 Scottish Government Place Based Investment Funded projects 2021 – 2024 When Place Based Investment (PBI) funding was introduced by the Scottish Government, allocations were provided over a five-year period and to date have been received as follows. • 2021/22 - £821,000 • 2022/23 - £712,000 • 2023/24 - £496,000 Unfortunately, the Council’s 2024/25 allocation of £496,000 was not made available. Following further consideration by the Scottish Government the council has now been informed that PBI will be made available for 2025/26. This will be provided in 2 tranches with £388,368 of funding in tranche 1 and a further £107,632 later in the financial year subject to the Scottish Governments budget position. Table 3 below, sets out projects to be delivered using PBI funding in 2025/26. These projects were endorsed by the Council’s P&R Committee in August 2025.
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Table 3: 2025/26 PBI Projects Project Tranche 1 Tranche 2 Albert Pier £100,000 Victoria Hall, Campbeltown £100,000 Shopfront and Business Support £56,000 CCTV Upgrades £100,000 Helensburgh Outdoor Museum £80,000 Rockfield Centre, Oban £60,000 TOTAL £380,000 £116,000 4.9 Scottish Crown Estate Revenue Allocation Funding In financial year 2024/25 the Council received Crown Estates funding totalling £1,818,715. The Council is still awaiting confirmation of the allocation for this financial year (2025/26) and it is unclear as to when formal written notification will be received from the Scottish Government. However, based on previous years allocations, a prudent estimate of £0.8m of anticipated funding in 2025/26 has been assumed and the projects set out in Table 4 will be considered by the Council’s P&R Committee in August 2025. Table 4: 2025/26 Crown Estates Projects Project Delivery by Crown Estate Allocation Inveraray Avenue Screen refurbishment Development & Economic Growth £120,000 Gallanach Road - Rock Slope Protection Road and Infrastructure Services £300,000 Tarbert Heritage and Place Programme - Match Funding (note this was agreed by Council in June and is noted here for information) Development & Economic Growth £115,000 for the next 4 years* CARS Projects - flexible fund to support businesses with capital improvements to shopfronts/buildings building on previous CARS investment Development & Economic Growth £150,000
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Victoria Hall, Campbeltown – repair and refurbish entire front elevation. Development & Economic Growth £50,000 Dunoon Public Realm Development & Economic Growth £65,000 TOTAL £800,000 4.10 Scottish Government Islands Programme and Carbon Neutral Islands Capital Fund 2025/26 The Scottish Government has announced that Islands Programme funding of £5.3m will be available for the 2025/26 financial year to fund capital projects on inhabited Scottish islands. A further £1.4m is available to support the Carbon Neutral Islands (CNI) in their progression towards net zero. Both of these funds are subject to a competitive bidding process. Following approval of the following Island’s Programme Funding bids by EDI Committee in June 2025, the following applications were submitted in July:- Table 5: 2025/26 Islands Programme Funding Bids Project Name - description Project Lead IP funding request Total project value Former Royal Hotel, Rothesay – Detailed design works Transformation Projects and Regeneration £400,000 £7,600,000 Community Digital Hubs Phase 2 Strategic Transportation £125,000 £125,000 Unlocking Ulva – Landing Craft Project North West Mull Community Woodland Company £536,020 £536,020 Skerryvore Lighthouse Shore Station - The Lighthouse Cottages Hynish Trust £306,050 £330,050 In addition to the Island’s Programme, a £1.4m Carbon Neutral Island Capital Fund was announced for 2025/26, also previously considered by EDI Committee. Funding bids have been submitted for the following projects: Table 6: 2025/26 CNI Funding Bids Project Name - description Project Lead CNI funding request Castlehill Solar Array Expansion IET £195,000 Additional Measures - Community Buildings Phase 2 IET £401,843
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Further updates on the funding bids set out in Tables 5 and 6 will be brought back to a future meeting of the EDI Committee following the outcome of the Scottish Governments Investment Panel in August. 4.11 Scotland Loves Local Projects Oct 21 – 2025 Argyll and Bute Gift Card - The gift card for Argyll and Bute formally launched in October 2021. To date, over 350 Argyll and Bute businesses have registered to accept the card as a means of payment for goods and services. The Council has continued to issue cards to eligible islands households supported by the Scottish Government’s Island Cost Crisis fund. . Inclusive of the LACER funded cards, as of 31 July 2025, a total of £990,825 has been redeemed through the gift card. Funding for the Gift Card has now been expended and we are in the process of assessing the anticipated costs and benefits of continuing with the scheme, a separate report will be provided to Policy and Resources Committee in due course. 4.12 Islands Cost Crisis Emergency Fund 2025 On 6 May 2025, the Scottish Government announced that Islands Cost Crisis Emergency funding (ICCEF) of £1 million would be available for the 2025/26 financial year. The funding will be distributed to the six Local Authorities with responsibility for islands through the 2025/26 Local Government Revenue Grant. The fund will be administered by Scottish Futures Trust (SFT) on behalf of the Scottish Government. The funding for Argyll and Bute Council is £145,000 for financial year 2025/26. The Council’s P&R Committee endorsed the project options for this funding in August 2025 and table 7 below, sets out the proposed funding allocation; Table 7: ICCEF 2025/26 Allocation ICCEF 2025/26 Distribution Targeting Fuel Poverty with ALI energy’s Affordable Warmth Service £120,000 Food Bank Grants £25,000 TOTAL ICCEF 25/26 £145,000 The proposed funding allocation will increase vital funding support to 5 island food banks. The Council are also intending to trial a scheme working in partnership with ALI energy to extend their Affordable Warmth service. This supports residents most at risk of fuel poverty and the scheme will be available to residents on all our island communities. Fuel poverty rates are generally higher on Scottish islands and this is exacerbated in households with low incomes.
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4.13 Helensburgh Former Skating Pond (Skating Pond) Feb 2025- May 2026 Helensburgh Former Skating Pond is a Local Nature Conservation Site and part of the open space protection area which forms part of the Green Network and Core Path Plan in the Green Belt bordering Helensburgh. It is regularly used as a walk/part of walks however over time the Skating Pond itself and other areas within the site have become filled with invasive species. In addition the paths, built circa 2000 require repair and improvement. The site is owned by Argyll and Bute Council who have £50k funding from the Nature Conservation Fund to consider how to improve and address issues of management and maintenance of the site for public access, as well as providing opportunities for environmental interpretation and learning opportunities. It is recognised that there is not enough funding to undertake any capital works at this stage and that an initial assessment of the site is required first. To this end, consultants have been appointed and interim findings produced as well as first stage community consultation and engagement with local primary schools. A final report with preliminary costs will identify a preferred option for consideration. 5.0 RURAL GROWTH DEAL 5.1 The Rural Growth Deal Full Deal Agreement was signed on 10th March 2025 by the First Minister, Secretary for State for Scotland and the Council Leader. The RGD will deliver £50m of investment from the Scottish and UK Governments for projects that are a driver for inclusive and transformational economic growth across the region. The Council and key delivery partners will also provide a minimum of £20m of match funding throughout the 10-year Deal programme. 5.2 The Rural Growth Deal has now entered year 2 of a 10 year programme of project delivery. A total of £1.6m has been claimed from Government since March 2025. The claimed funds all relate to the renovation of Rothesay Pavilion, which remains the only project to have a Full Business Case endorsed by central government. 5.3 A total of £6,025,000 has been awarded from Government for FY2025/26. Up to £4m of this is allocated to the renovation of Rothesay Pavilion, with Kintyre Sea Sports and Enabling Worker Accommodation projects receiving £1m each and £25,000 for Highland and Islands Enterprise’s Business Skills programme. These projects are developing their Full Business Cases for appraisal by Government. 5.4 It should be noted that no Rural Growth Deal funding can be drawn down in advance of endorsement of full business cases by Central Government. This
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process can take up to 9 months to complete and requires RGD partners to spend project development funding at risk. 6. COMMUNITY REGENERATION PARTNERSHIP 6.1 In the 2024 Autumn Statement the UK Government committed to delivering a package of support to Argyll and Bute Council in order to improve outcomes across the region in line with the Government’s core missions and priorities. Community Regeneration Partnership Funding will build upon previous work and engagement undertaken by the Ministry of Housing, Communities and Local Government (MHCLG) under the banner of Levelling Up. 6.2 As part of the core funding package, there is up to £20m capital funding and £250k revenue available for the CRP. Funding is profiled for payment in financial year 2026-27 and is subject to business case approvals by UKG Ministers. A further capacity payment of £45k will be provided to support staff resourcing. This will be paid in FY25-26 and follows a separate capacity payment which was transferred at the beginning of FY24-25. 6.3 A draft list of priority projects was approved by the Council’s P&R Committee on the 20th February 2025 and this has formed the basis of negotiations with the UK Government. Civil servants have also undertaken local engagement with a number of external stakeholders and community groups during spring 2025. UK Government officials are currently drafting the programme level business case which will require ministerial approval prior to an official funding announcement. The Council have been advised that the UK Government hope to confirm successful projects in September 2025 (subject to approval of the business case). 6.4 Further updates will be brought back to the EDI Committee in the next project update report. 7. EMPTY BUSINESS PROPERTY GRANTS 7.1 Empty Property Relief was devolved to Scottish Local Authorities on 1 April 2023. At their meeting of 23 November 2023, Council subsequently agreed that from 1 April 2024, 50% Non-Domestic Rates (NDR) relief could be granted to business properties which are empty for a maximum of three months. In cases where business properties remain empty beyond three months, 10% relief can be awarded for up to an additional nine-month period. Following this, should a business property remain empty beyond a twelve- month period, no further NDR relief would be awarded, and 100% Non- Domestic Rates would begin to be charged. 7.2 On 23 November 2023, Council also agreed that the remaining Empty Property Relief funding from Scottish Government be used towards an Empty Property Business Grant Scheme, the aim of which would be to assist owners to return properties to productive use. An Empty Business Property Officer has since been appointed to support the distribution of funds, which amount to in the region of £300k for 2025/26.
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7.3 On 8th May 2025, the council’s Policy and Resources Committee approved Extended Empty Property Relief, whereby non-domestic rates relief will be extended for property owners who are actively working to bring their properties back into use. Owners may apply for 100% relief for up to 12 months at any time after the property becomes vacant, provided the conditions are met. 7.4 A further paper providing an update on the Empty Business Property grant scheme was presented to the EDI committee on 19th June 2025. The committee approved the Empty Business Property Grant Scheme with an anticipated budget of up to £785,000 for the financial year 2025/26. 7.5 Members are asked to note that the number of vacant business properties is now being recorded as part of the Councils Area Performance Reporting. 7.6 At this time, Scottish Government funding is not committed beyond 31 March 2026 and Scottish Government will have to review arrangements for devolved Empty Property Relief prior to financial year 2026/27. As a result, a further update on Empty Business Property Grants will be brought back to the EDI Committee in due course. 8. CONCLUSION 8.1 This report provides an update to the Environment, Development and Infrastructure Committee on progress with large-scale, externally funded project work being delivered by the Transformational Projects and Regeneration Team. Currently this involves over £100m of external funding across Argyll and Bute with further bids in progress. 8.2 The projects and grants detailed within this report will result in assisting the economic recovery of Argyll and Bute, helping to sustain numerous small businesses, community organisations, making our places more investor ready and improving our towns and villages as places to live, work and visit. 8.3 From April 2024, The Transformation Projects and Regeneration Team also includes responsibility for delivery of the Council’s RGD Programme and the team are also managing the emerging CRP programme. Combined, these programmes will deliver in excess of £70m of external funding to the region. 8.4 Members are asked to note that the grant funding landscape and delivery of capital projects remains extremely challenging due to budget and resource constraints however, the Transformation Projects and Regeneration Team will continue to respond to emerging Government policy decisions and future grant funding opportunities.
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9. IMPLICATIONS 9.1 Policy - The delivery of these projects fits with the Council’s Corporate Plan, Argyll and Bute Local Outcome Improvement Plan and the Economic Development Action Plan. The economic outcomes from this project will contribute to the Government’s Economic Strategy. 9.2 Financial - All funding has been approved for the projects detailed in the report. The funding comes from the Council and from external funding sources, some from highly competitive processes. We will continue to review costs and assess budgets. 9.3 Legal - Each project will have differing legal and procurement requirements depending on the grant funder and the associated grant contract conditions and we are working closely with colleagues to identify the support required and to allow this to be factored into future work plans. 9.4 HR - The resources required to deliver the projects will be continually monitored. The management of these externally funded projects as well as the management of the Council, PBI, CE, IP and RCGF grants requires a significant amount of resources from the team to ensure that all the necessary due diligence and financial management is undertaken and risk is minimised to the Council. 9.5 Customer Service – None 9.6 Risk - Construction projects by their very nature are challenging given issues that can arise relating to site conditions, managing contractors/the design team and associated budgets and meeting funder’s requirements. We continually seek to minimise the risk through strong project management processes, however until the projects are fully delivered on site there remains a risk. Other areas of risk relate to the potential for limited uptake in regard to CARS grants and also over-run on costs for third party projects. In regard to the latter this is a high risk particularly as the Council is not the responsible body for the projects or their delivery on the ground. The setting up of regular benefits realisation group meetings and building good working relationships with the third parties assists in identifying where issues may arise and where additional support may be required. Cost inflation continues to impact the construction industry and this is exacerbated by limited supply chain options in rural areas. Robust procurement and contract management processes will reduce the risk of cost escalation on projects. 9.7 Climate Change - It is an ambition of our project work to work towards net zero by adopting a carbon conscious approach throughout. Some grant funding directly supports the transition to net zero (e.g. CNI).
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9.8 Fairer Scotland Duty: Socio Economic Duty – Grant funding can support projects which are a catalyst for economic growth and well-being, particularly on some of our most fragile communities. 9.9 Equalities – protected characteristics – Projects can be a driver for inclusion. 9.10 Customer Duty – Delivery of external grant funding will ensure the Council are supporting local communities and households across Argyll and Bute. 9.11 Island Communities – some of the funds directly support local island communities e.g. Islands Programme, CNI, ICCEF. 9.12 Childrens rights and wellbeing – Some funding will directly support projects that aim to provide positive outcomes for children and young people. This will include those at greatest risk of poverty and households with children. Kirsty Flanagan, Executive Director with responsibility for Development and Economic Growth Leader of the Council: Councillor Jim Lynch Policy Lead for Business Development: Councillor Math Campbell-Sturgess August 2025 For further information - please contact: Fergus Murray, Head of Development and Economic Growth Fergus.Murray@argyll-bute.gov.uk Jonathan Welch, Transformation Projects and Regeneration Manager jonathan.welch@argyll-bute.gov.uk Appendices: Appendix A – List of Council and Third Party projects that the team is either responsible for delivering directly or for managing the grants given by the Council to a third party organisation.
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APPENDIX A - LIST OF COUNCIL AND THIRD PARTY PROJECTS Council & Third Party Regeneration Projects Project Value Council Funding Contribution External Funding secured by ABC Delivery Start Delivery End - (Excludes 12 month defect and monitoring period) Tarbert Lochgilphead Regeneration Fund (Remaining Balance) £250,000 £250,000 £0 TBC Ongoing (Gleaner Site) Port Ellen Community hub, Islay RCGF grant £1,570,259 £0 £1,096,223 2021/22 2025 Kilmory Business Park in Lochgilphead RCGF grant £1,980,000 TBC £979,000 2021/22 2025/26 Lochgilphead CARS (Includes 22/23 PBI Grant) £2,200,782 £750,551 £1,269,731 2020 2026 Helensburgh CARS £2,400,000 £500,000 £1,240,000 2021 2026 Events and Festivals grants £114,700 £114,700 - 2024/25 2025/26 Royal National Mòd (provisional) £45,000 £45,000 £0 2024/25 2024/25 Crown Estate Funding Award 23/24 £1,590,409 £0 £0 23/24 Ongoing Crown Estate Funding Award 24/25 £1,818,715 £0 £0 24/25 Ongoing Community Regeneration Funding £20,340,000 £TBC £TBC 25/26 Ongoing Scotland Loves Local £46,000 £0 £46,000 2022/23 2025/26 Aros Waterfront outdoor activity hub – RCGF Grant £414,565 £0 £403,500 2023/24 2025/26 Islands Programme 2023/24 - Rockfield Road, Tobermory Phase 1 (also PBI and Crown Estate) £1,105,796 £250,000 £855,796 2023/24 2025/26 Islands Programme 2023/24 - Tiree Care Home £1,250,000 £580,000 £450,000 2023/24 2024/25 Islands Cost Crisis Emergency Funding £145,000 £0 £145,000 2025/26 2025/26 Tarbert Heritage Regeneration Scheme – Development Phase £140,000 £60,000 £80,000 2023/24 2024/25 CNI Capital Fund 24/25 - Decarbonisation of Community Buildings £246,444 £0 £246,444 2024/25 2025/26 CNI Capital Fund 24/25 - Islay Forestry Initiative Phase 3 £354,116 £0 £142,285 2024/25 2025/26 Isle of Luing Slate Quarry – RCGF 25/26 £2,000,000 £0 £1,747,936 2025/26 2026/27
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Council & Third Party Regeneration Projects Project Value Council Funding Contribution External Funding secured by ABC Delivery Start Delivery End - (Excludes 12 month defect and monitoring period) Rural Growth Deal – Kintyre Seasports £2,300,000 £200,000 £2,100,000 2025/26 2026/27 Rural Growth Deal – Rothesay Pavilion (Stage 2b/2c) £22,000,000 £10,749,000 £11,700,000 2025/26 2026/27 Rural Growth Deal – Low Carbon Economy – Isle of Islay £3,000,000 £24,129 £3,000,026 2032/33 2033/34 Rural Growth Deal – Rural Skills Accelerator Programme – Dunoon STEM Hub £3,362,728 £77,455 £3,240,000 2025/26 2026/27 Rural Growth Deal – Rural Skills Accelerator Programme – SAMS STEM Hub £2,500,000 £0 £2,500,000 2026/27 2027/28 Rural Growth Deal – Rural Skills Accelerator Programme – UHI Argyll Estate Enhancements Lochgilphead £1,500,000 £0 £1,500,000 2029/30 2029/30 Rural Growth Deal – Housing to Attract Economic Growth – Isle of Mull £1,500,000 £125,300 £1,500,000 2025/26 2026/27 Rural Growth Deal – Housing to Attract Economic Growth – Isle of Islay £1,500,000 £37,959 £1,500,000 2028/29 2028/29 Rural Growth Deal – Clyde Engineering and Innovation Centre £7,000,000 £59,566 £199,820 2029/30 2031/32 Rural Growth Deal – West Coast UAV Logistics and Training Hub £4,000,000 £21,886 £420,000 2031/32 2032/33 Rural Growth Deal – Marine Industry Training Centre £7,830,000 £0 £7,830,000 2027/28 2029/30 Rural Growth Deal – Centre for Seaweed and Shellfish Innovation and Development £3,330,000 £0 £3,330,000 2027/28 2028/29 Rural Growth Deal – Machrihanish Innovation Campus £3,840,000 £0 £3,840,000 2026/27 2027/28 Total £101,674,514 £13,395,546 £51,361,761
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