Empty Business Property - Update on Business Grant Scheme
Argyll and Bute Council · 19 June 2025
Back to Environment, Development and Infrastructure Committee — 19 June 2025 and its agenda
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ARGYLL AND BUTE COUNCIL ENVIRONMENT, DEVELOPMENT AND INFRASTRUCTURE COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 19 JUNE 2025 EMPTY BUSINESS PROPERTY – UPDATE ON BUSINESS GRANT SCHEME 1.0 EXECUTIVE SUMMARY 1.1 The purpose of this paper is to update the Environment, Development and Infrastructure Committee on the implementation of Empty Property Relief Policy for Non-Domestic Rates (NDR), and to propose an associated Empty Business Property Grant Scheme. 1.2 Empty Property Relief was devolved to Scottish Local Authorities on 1 April 2023. At their meeting of 23 November 2023, Argyll and Bute Council subsequently agreed that from 1 April 2024, 50% 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 will be awarded, and 100% Non-Domestic Rates will be charged. 1.3 On 23 November 2023, Council agreed that the remaining Empty Property Relief funding from Scottish Government be used towards an Empty Property Business Grant Scheme (BGS), and officers were to bring forward the detail to the Environment, Development and Infrastructure Committee meeting for approval. 1.4 For the financial year 2024/2025, funding of £296,000 was earmarked for business grants, and in 2025/2026, there is an allocation of up to £489,000. This paper seeks to outline the approach and governance for the business grant scheme at paragraphs 4.4 to 4.17, plus a scoring mechanism provided as Appendix 1.
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1.5 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. RECOMMENDATIONS It is recommended that the Environment, Development and Infrastructure Committee:- i. Consider the content of this paper. ii. Agree to the framework and governance arrangements for an Empty Property Business Grant Scheme. iii. Agree to delegate authority to the Executive Director with responsibility for Development and Economic Growth in consultation with the Policy Lead and Chair of the Area Committee, to approve grants above £25,000 (maximum £50,000) should circumstances require a grant above £25,000.
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ARGYLL AND BUTE COUNCIL ENVIRONMENT, DEVELOPMENT AND INFRASTRUCTURE COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 19 JUNE 2025 EMPTY BUSINESS PROPERTY – UPDATE ON BUSINESS GRANT SCHEME 2.0 INTRODUCTION 2.1 The purpose of this paper is to update Members on the implementation of Argyll and Bute’s, Empty Property Relief policy for Non-Domestic Rates (NDR), and to seek Member consideration of the approach and governance proposed for an associated, Empty Property Business Grant Scheme (BGS). 2.2 On 23 November 2023, Council agreed that the remaining Empty Property Relief funding from Scottish Government be used towards an Empty Property BGS and officers were to bring forward the detail to the Environment, Development and Infrastructure Committee meeting for approval. 2.3 This paper seeks to outline the proposed approach, as well as the governance arrangements for distribution of funds (paragraphs 4.4 to 4.17 and Appendix 1), with the aim of incentivising and supporting the owners and tenants of empty business properties to return properties to productive use. 2.4 Properties that are empty or derelict can often be vacant because of challenging circumstances. It is therefore proposed to work closely with property owners to understand where support can best be targeted relative to individual needs, but to do this within an established framework. 2.5 The framework allows for a proactive approach but has been designed to test the need for intervention and is based around viability. This will ensure that any grant provided has the potential to unlock the development potential of vacant premises and deliver wider public benefit, in terms of jobs, socio-economic opportunities and environmental improvements. 2.6 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.
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3.0 RECOMMENDATIONS It is recommended that the Environment, Development and Infrastructure Committee:- i. Consider the content of this paper. ii. Agree to the framework and governance arrangements for an Empty Property Business Grant Scheme. iii. Agree to delegate authority to the Executive Director with responsibility for Development and Economic Growth in consultation with the Policy Lead and Chair of the Area Committee, to approve grants above £25,000 (maximum £50,000) should circumstances require a grant above £25,000. 4.0 DETAIL 4.1 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. 4.2 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 (BGS), the aim of which would be to incentivise owners to return properties to productive use. 4.3 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. 4.4 An Empty Business Property Officer has since been appointed to support and facilitate the distribution of funding for Extended Empty Property Relief and Business Grant Scheme, which it is anticipated will be in the region of £785,000 for financial year 2025/26.
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4.5 The proposed Business Grant Scheme will operate region-wide and will be promoted via council websites, through the Business Gateway service and via other partners. 4.6 The grant scheme will apply to business properties which have been empty for at least 6 months and is open to the owners/leasees of properties registered on the valuation roll, as maintained by the Dunbartonshire and Argyll and Bute Valuation Joint Board. Properties with a rateable value of <£1000 will not be eligible. 4.7 All registered empty business properties with a rateable value of >£1000 are therefore eligible, but priority for support will be given to properties within core or edge of town centre locations, business improvement districts, and/or where the property is part of wider regeneration activity where it can be demonstrated that grant funding would support the viability of the business. 4.8 The grant scheme will be open to business start-ups, established SME’s, Development Trusts, social enterprises and charities. The scheme is also open to potential inward investors from out with Argyll and Bute, who are looking to establish a business in the region. 4.9 Each applicant will only be eligible to apply in respect of one property, however owners of multiple properties can work with a tenant or prospective tenant to take forward an additional application(s). 4.10 Applications will be considered on a rolling basis until funding is allocated in full. This means that whilst the fund is open there is no deadline for applications, but successful projects must be completed and claimed before 31 March 2026. 4.11 The key principle of the Empty Property BGS is to realise a viable end use for the empty property. As such, grants could be made available to understand the feasibility and condition of properties, support physical repairs or could include alterations or conversions. In situations where poor condition is preventing occupation, consideration would be given to addressing the disrepair. 4.12 To test the framework for the Business Grant Scheme, discussions are ongoing with a number of private sector owners and prospective tenants of empty properties within Helensburgh and Dunoon, including properties involved in council led Conservation Area Regeneration Scheme (CARS) projects. 4.13 The test case project within the Helensburgh Conservation Area Regeneration Scheme (CARS) would include an options appraisal and feasibility study to support the owner of an empty property explore how to maximise the spaces available and repurpose into viable business units. Whereas, in Dunoon CARS, the test case would support an owner of a property in the core
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shopping area to invest in a new shopfront to meet the demand for quality retail space within the town. 4.14 Out with council led CARS projects in Dunoon and Helensburgh, we have engaged private sector owners of empty properties in both towns to test the business grant scheme approach. Both pilot projects have helped confirm that the grant scheme would positively incentivise the owners and will encourage them to take positive steps by increasing the level of investment or accelerating plans to create a viable enterprise and support regeneration of the town centre. Appendix 2 provides a sample of before and after images of the pilot project in Helensburgh that aims to complete this summer. 4.15 Applications will be subject to a scoring system, as provided in Appendix 1 and grants of up to £25,000 will be awarded. Should circumstances require a grant above £25,000 (maximum £50,000), approval would be sought from the Executive Director with responsibility for Development and Economic Growth in consultation with the Policy Lead and Chair of the Area Committee. 4.16 It is anticipated that the criteria for the grant scheme will allow for grant awards at a variety of levels. However, whilst it is not anticipated that many grants would be considered over £25,000, any award proposed at this level and above would be expected to score extremely well and demonstrate substantial wider community benefit. 4.17 It is proposed that applicants who successfully secure extended empty property relief will also be able to apply for business grants. Consequently, a business grant will be capped at a level that ensures the value of the combined interventions of, relief plus grant, does not exceed a value of £25,000. This step is necessary to enhance the impact of the updated EPR policies and the BGS by providing more targeted funding support to more businesses and it will help evaluate how the policy changes and grant scheme impact upon the increasing number of empty properties, which stood at 332 in February 2025. 4.18 The recommended approach places a focus on locally led partnership working and collaboration as a cornerstone of delivery. This aligns with the drivers of economic growth as set out in the Economic Strategy Refresh 2024-2034. 4.19 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.
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5.0 CONCLUSION 5.1 The Empty Business Property Grant Scheme will seek to support the owners and prospective tenants of empty business properties return these to productive use with a view to enhancing the look, feel and vitality of our places, growing businesses and job opportunities, and attracting inward investment. 5.2 Activity related to the Empty Business Property Grant Scheme and the feasibility assessments will meet the council’s four strategic key pillars: people, place, planet and prosperity. 6.0 IMPLICATIONS 6.1 Policy – Empty Business Property Grant will support Argyll and Bute Council’s Growth Areas, Areas for Action, Regeneration Areas and Fragile Economic Areas, by prioritising applications for activity in these areas, and will be cognisant of a range of LDP2 policies. The Scheme seeks to take a place- based approach and to adopt a Town Centre First approach. 6.2 Financial – Funding of the grant scheme has previously been approved from the grant allocation from Scottish Government. 6.3 Legal – The new empty property policy will be prescribed under section 140 of the Community Empowerment Act 2015 and each grant funded project will have differing legal and procurement requirements depending on the associated works undertaken and grant contract conditions. We will continually monitor each application and ensure compliant delivery of funded projects. 6.4 HR – None. 6.5 Customer service – None. 6.6 Risk – There are risks of damage to the economy and the attractiveness and viability of town centres and other businesses if the number of empty properties increases without intervention. 6.7 Climate change – Addressing empty/vacant/derelict properties will help make best use of existing stock and can support the delivery of energy efficiency measures that contribute towards achieving climate change targets. 6.8 Fairer Scotland Duty – All applicants for grants will be tested for complying with Fair Work First policy to actively consider how they can reduce inequalities of outcome caused by socio-economic disadvantage. 6.9 Equalities: protected characteristics – None. 6.10 Consumer duty – The grant scheme aims to help bring empty properties back into productive use and create new economic and employment opportunities.
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6.11 Island communities – Whilst no specific allocation is made, grant funding will be used to support the delivery of projects on islands. 6.12 Children’s Rights and Wellbeing – None. Kirsty Flanagan: Executive Director with responsibility for Development and Economic Growth Councillor Jim Lynch, Policy Lead for Economic Development, Islands, Rural Communities and Housing 20th May 2025 For further information contact: Fergus Murray, Head of Development and Economic Growth fergus.murray@argyll-bute.gov.uk Daniel MacIntyre – Empty Business Property Officer daniel.macintyre@argyll-bute.gov.uk APPENDICES Appendix 1 – Empty Business Property – Grant Assessment Appendix 2 – Before and After Images