Agenda reports pack
Argyll and Bute Council · 19 June 2025
Back to Environment, Development and Infrastructure Committee — 19 June 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
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Argyll and Bute Council Comhairle Earra-Ghàidheal Agus Bhòid Executive Director: Douglas Hendry Kilmory, Lochgilphead, PA31 8RT Tel: 01546 605522 DX 599700 LOCHGILPHEAD 12 June 2025 NOTICE OF MEETING A meeting of the ENVIRONMENT, DEVELOPMENT AND INFRASTRUCTURE COMMITTEE will be held ON A HYBRID BASIS IN THE COUNCIL CHAMBER, KILMORY, LOCHGILPHEAD AND BY MICROSOFT TEAMS on THURSDAY, 19 JUNE 2025 at 10:30 AM, which you are requested to attend. Douglas Hendry Executive Director BUSINESS 1. APOLOGIES FOR ABSENCE 2. DECLARATIONS OF INTEREST 3. MINUTES (Pages 5 - 12) Environment, Development and Infrastructure Committee held on 20 March 2025 4. EMPTY BUSINESS PROPERTY - UPDATE ON BUSINESS GRANT SCHEME (Pages 13 - 24) Report by Executive Director with responsibility for Development and Economic Growth 5. HOUSING EMERGENCY UPDATE (Pages 25 - 50) Report by Executive Director with responsibility for Development and Economic Growth 6. COMMUNITY WEALTH BUILDING BILL AND CRUISE SHIP LEVY BILL CONSULTATONS: ARGYLL AND BUTE COUNCIL OFFICER RESPONSES (Pages 51 - 74) Report by Executive Director with responsibility for Development and Economic Growth Public Document Pack
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7. SCOTTISH GOVERNMENT FUNDING - ISLANDS PROGRAMME, CARBON NEUTRAL ISLANDS CAPITAL FUND AND REGENERATION CAPITAL GRANT FUND (Pages 75 - 86) Report by Executive Director with responsibility for Development and Economic Growth 8. ARGYLL AND BUTE LOCAL TRANSPORT STRATEGY ISSUES REPORT (Pages 87 - 94) Report by Executive Director with responsibility for Development and Economic Growth 9. REMEMBERING TOGETHER - CO-CREATING COVID COMMUNITY MEMORIALS - COMPLETE (Pages 95 - 104) Report by Executive Director with responsibility for Development and Economic Growth 10. TEMPORARY TRAFFIC REGULATION ORDERS CHARGING AND ADVERTISING (Pages 105 - 108) Report by Executive Director with responsibility for Roads and Infrastructure 11. REVIEW OF ROADS AND INFRASTRUCTURE SERVICES - UPDATE (Pages 109 - 122) Report by Executive Director with responsibility for Roads and Infrastructure 12. WASTE LANDFILL BAN UPDATE (Pages 123 - 132) Report by Executive Director with responsibility for Roads and Infrastructure 13. MARINE OPERATIONS: COUNCIL FERRY SERVICE: HITRANS GRANT (Pages 133 - 136) Report by Executive Director with responsibility for Roads and Infrastructure 14. NAMING OF TARBERT PLAYPARK (Pages 137 - 138) Recommendation from meeting of Mid Argyll Kintyre and the Islands held on 4 June 2025 REPORTS FOR NOTING 15. ENVIRONMENT, DEVELOPMENT AND INFRASTRUCTURE COMMITTEE WORK PLAN 2025/26 (Pages 139 - 142) E1 16. WASTE DISPOSAL – OPTIONS POST PPP CONTRACT (Pages 143 - 154) Report by Executive Director with responsibility for Roads and Infrastructure Services The Committee will be asked to pass a resolution in terms of Section 50(A)(4) of the Local Government (Scotland) Act 1973 to exclude the public for items of business with an “E” on the grounds that it is likely to involve the disclosure of exempt information as defined in the appropriate paragraph of Part I of Schedule 7a to the Local Government (Scotland) Act 1973. The appropriate paragraph is:- E1 Paragraph 9 Any terms proposed or to be proposed by or to the authority in the course of negotiations for a contract for the acquisition or disposal of property or the supply of goods or services.
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Environment, Development and Infrastructure Committee Councillor John Armour (Chair) Councillor Jan Brown Councillor Graham Hardie Councillor Willie Hume Councillor Andrew Kain Councillor Jim Lynch Councillor Tommy MacPherson Councillor Ian MacQuire Councillor Luna Martin Councillor Liz McCabe Councillor Ross Moreland (Vice-Chair) Councillor Gary Mulvaney Councillor Alastair Redman Councillor William Sinclair Councillor Andrew Vennard Councillor Peter Wallace Contact: Katie McKenzie, Committee Services Officer Tel: 01546 604465
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MINUTES of MEETING of ENVIRONMENT, DEVELOPMENT AND INFRASTRUCTURE COMMITTEE held ON A HYBRID BASIS IN THE COUNCIL CHAMBER, KILMORY, LOCHGILPHEAD AND BY MICROSOFT TEAMS on THURSDAY, 20 MARCH 2025 Present: Councillor John Armour (Chair) Also Present: Councillor Graham Hardie Councillor Willie Hume Councillor Andrew Kain Councillor Jim Lynch Councillor Tommy MacPherson Councillor Ian James MacQuire Councillor Maurice Corry Councillor Liz McCabe Councillor Ross Moreland Councillor Gary Mulvaney Councillor William Sinclair Councillor Andrew Vennard Councillor Peter Wallace Attending: Kirsty Flanagan, Executive Director Stephen Hall, Interim Head of Roads and Infrastructure Services Fergus Murray, Head of Development and Economic Growth Matt Mulderrig, Development Policy and Housing Manager Hugh O’Neill, Network and Standards Manager Stuart McLean, Committee Manager 1. APOLOGIES FOR ABSENCE There were no apologies for absence. 2. DECLARATIONS OF INTEREST There were no declarations of interest. 3. MINUTES The Minutes of the meeting of the Environment, Development and Infrastructure Committee held on 19 December 2024 were approved as a correct record. 4. FILM IN ARGYLL - SCREEN INDUSTRIES UPDATE REPORT The Committee gave consideration to a report providing an update on the work of the Council’s Film in Argyll service in attracting inward investment into Argyll and Bute from the screen industries, and the economic benefits that it had brought to the local economy, including the opportunities to promote and market the area. The report covers the period January 2024 to December 2024. Decision The Environment, Development and Infrastructure Committee considered and noted the content of the report and the continued positive economic impact the screen industries have on Argyll and Bute. Page 5 Agenda Item 3
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(Reference: Report by Executive Director with responsibility for Development and Economic Growth dated 14 February 2025, submitted) 5. TRANSFORMATIONAL PROJECTS AND REGENERATION TEAM - LARGE SCALE PROJECT UPDATE REPORT The Committee gave consideration to a report providing an update on current progress of the large-scale, externally funded project work of the Transformational Projects and Regeneration Team, and highlighting key issues that may impact on the successful delivery of projects. Decision The Environment, Development and Infrastructure Committee – 1. considered the current progress contained within the report; and 2. noted that further updates relating to emerging funds such as the Community Regeneration Partnership funding and Empty Business Property Grants would be brought back to the Committee in due course to update Members. (Reference: Report by Executive Director with responsibility for Development and Economic Growth dated February 2025, submitted) Councillor Jim Lynch joined the meeting during consideration of the following item of business. 6. UNMANNED AERIAL VEHICLE (UAV) TRIALS The Committee gave consideration to a report detailing the feasibility of the creation of a blanket area of low-density airspace over rural areas to enable the safe integration of unmanned aircraft systems with general aviation/scheduled manned aircraft. Decision The Environment, Development and Infrastructure Committee – 1. considered the report included at Appendix A of the report; and 2. approved the course of action to now publish the report, including Comms communications press release with quotes from participants. (Reference: Report by Executive Director with responsibility for Development and Economic Growth dated March 2025, submitted) 7. COMMUNITY BENEFITS FROM NET ZERO ENERGY DEVELOPMENTS: CONSULTATION RESPONSE The Committee gave consideration to a report detailing the draft response to the Scottish Government’s consultation to inform a review of their Good Practice Principles guidance documents for the payment of community benefit in relation to both onshore and offshore net zero developments. Page 6
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Decision The Environment, Development and Infrastructure Committee approved the draft response set out within Appendix 1 of the report and delegated approval to officers to submit this as the Councils formal response to the consultation. (Reference: Report by Executive Director with responsibility for Development and Economic Growth dated 18 February 2025, submitted) 8. HOUSING EMERGENCY: "ON-BOARDING" WITH OFGEM ECO4 FLEX The Committee gave consideration to a report detailing the benefits of Ofgem’s ECO4 Flex Scheme and seeking approval to appoint a Managing Agent to deliver ECO4 Flex enabling Council Officers to sign off eligible ECO4 Flex Declarations. Decision The Environment, Development and Infrastructure Committee agreed to – 1. delegate authority to the Executive Director with responsibility for Development and Economic Growth to sign off ECO4 Flex Declarations for eligible households; 2. engage a Managing Agent to deliver ECO4 Flex across the Local Authority area; 3. note that a member training seminar would be delivered on the ECO4 Flex Scheme. (Reference: Report by Executive Director with responsibility for Development and Economic Growth dated March 2025, submitted) 9. ISLAND-BASED STRATEGIC TOURISM INFRASTRUCTURE DEVELOPMENT PROJECTS The Committee gave consideration to a report detailing a recent review of a limited number of island-based projects and seeking approval, based on officer recommendations, on three island-based projects out of this series of previously identified Strategic Tourism Infrastructure Development (STID) proposals to take forward for 2025/26 Rural Tourism Infrastructure Fund funding applications. Decision The Environment, Development and Infrastructure Committee – 1. considered the content of the paper and Appendix 1 of the report; 2. noted the origin of the projects listed in Table 1 and that the STID was a live document; 3. agreed that the three projects noted in section 1.5 of the report, Bute Forest (Bute), Royal Society for the Protection of Birds (Islay) and Hynish Trust (Tiree) could be taken forward to the Design Grant (available throughout 2025) and/or Page 7
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full Rural Tourism Infrastructure Fund application stage, as appropriate, in time for the deadline of the end of April 2025. (Reference: Report by Executive Director with responsibility for Development and Economic Growth dated 17 February 2025, submitted) Councillor Ian MacQuire joined the meeting during consideration of the following item of business. * 10. HELENSBURGH WASTE TRANSFER STATION PROJECT UPDATE The Committee gave consideration to a report providing an update on the Helensburgh Waste Transfer Station project following the completion of the Options Appraisal and making a recommendation in relation to the next steps for this project and associated budgets. Decision The Environment, Development and Infrastructure Committee – 1. noted that the proposed Helensburgh Waste Transfer Station no longer provided the optimum solution to ensure Biodegradable Municipal Waste compliant disposal arrangements in the Helensburgh and Lomond area; 2. agreed that officers should not progress further with the development and delivery of the Helensburgh Waste Transfer Station Project; 3. recommended to the Policy and Resources Committee that the remainder of the £3m of budget earmarked for this project be retained to support other funding related pressures within the waste service; and 4. noted that should circumstances change, specifically the cost benefit ration, that the scheme could be revisited. (Reference: Report by Executive Director with responsibility for Roads and Infrastructure Services dated February 2025, submitted) 11. ROADS CAPITAL RECONSTRUCTION PROGRAMME - 2025/26 The Committee gave consideration to a report detailing the proposed roads reconstruction programme for 2025/26. Decision The Environment, Development and Infrastructure Committee – 1. endorsed the proposed capital works for 2025/26; 2. agreed to allocate £2m to the repair of roads and coastal assets damaged by Storm Eowyn in January 2025 and to a delegation to the Executive Director with responsibility for Roads and Infrastructure Services in consultation with the Policy Lead for Roads, Transport and Amenity Services to finalise scheme specific budget allocations for these works; and Page 8
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3. agreed that details of each Area Committee’s Capital Works would be forwarded to individual Elected Members. (Reference: Report by Executive Director with responsibility for Roads and Infrastructure Services dated March 2025, submitted) Councillor Gary Mulvaney left the meeting during consideration of the following item of business. 12. ANNUAL STATUS AND OPTIONS REPORT 2025 The Committee gave consideration to a report providing an overview of road infrastructure assets within Argyll and Bute Council based on 2023-24 and 2024-25 data for asset condition, previous investment, asset valuation and other relevant information. Decision The Environment, Development and Infrastructure Committee – 1. endorsed the Annual Status and Options Report and the positive analytical feedback it provided and agreed to use the information for future budget setting; and 2. agreed that going forward officers use the previous year’s Road Condition Index to programme the coming years programme. (Reference: Report by Executive Director with responsibility for Roads and Infrastructure Services dated February 2025, submitted) 13. REVIEW OF ROADS AND INFRASTRUCTURE SERVICES - UPDATE The Committee gave consideration to a report providing an update on progress and next steps in relation to the Roads and Infrastructure Service Review (RIS Review). Decision The Environment, Development and Infrastructure Committee – 1. noted the content of the report; 2. agreed to endorse the priority improvement actions set out within the report; and 3. agreed to receive a further report on progress of the RIS Review in June 2025. (Reference: Report by Executive Director with responsibility for Roads and Infrastructure Services dated March 2025, submitted) Page 9
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14. STORM EOWYN WEATHER EVENT JANUARY 2025 INFRASTRUCTURE DAMAGE AND RECOVERY The Committee gave consideration to a report providing a summary of the clear up and infrastructure recovery works undertaken to date and providing an estimated cost for the repair of all known damage to Council infrastructure assets while also setting out a method of prioritisation being applied to the recovery works. Decision The Environment, Development and Infrastructure Committee – 1. noted the updates on the current position of the projects; 2. agreed that repair works to road and coastal assets that fall outwith the funding that may be provided by the Belwin Scheme would be considered for delivery on a prioritised basis alongside other works as part of the development and approval of the roads and infrastructure capital programme for 2025/26; 3. agreed that repair works to marine assets that fall outwith the funding that may be provided by the Bellwin Scheme be funded through increases in fees and charges in future years where possible (in line with the Marine Asset Management Plan); and 4. agreed that the Council would write to the Scottish Government seeking dialogue in relation to future funding models to support recovery of infrastructure and wider capital assets following major storm events. (Reference: Report by Executive Director with responsibility for Roads and Infrastructure Services dated 11 March, submitted) 15. TRAFFIC DATA SURVEYS GUIDANCE REPORT The Committee gave consideration to a report providing notification of the proposed Traffic Data Surveys Guidance Document and proposing that a Members Seminar take place where officers will brief members on the requirements for Traffic Data Surveys allowing a more in depth explanation on this matter. Decision The Environment, Development and Infrastructure Committee – 1. agreed the listed measures be endorsed to ensure best use of the limited staff resource as well as a consistent protocol for assessing criteria in relation to speed limits; and 2. noted that a members seminar would take place to provide further detail to Elected Members on this matter. (Reference: Report by Executive Director with responsibility for Roads and Infrastructure Services dated March 2025, submitted) Page 10
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Members were asked to suspend Standing Orders with particular regard to Standing Order 8.1.8 - other business which is included on the agenda, including those items advised for noting only, which in the case of the latter shall not be subject to debate or discussion nor shall it be competent to move any motion other than that the matter be referred to the next meeting of the committee as a substantive item. The requisite two thirds of Members present agreed to suspend Standing Order 8.1.8. 16. OCTOBER 2023 WEATHER EVENT UPDATE The Committee gave consideration to a report providing an update in respect of the October 2023 weather event. Decision The Environment, Development and Infrastructure Committee noted the updates on the current position of the projects. (Reference: Report by Executive Director with responsibility for Roads and Infrastructure Services dated 26 February 2025, submitted) 17. ENVIRONMENT, DEVELOPMENT AND INFRASTRUCTURE COMMITTEE WORKPLAN The Environment, Development and Infrastructure Committee workplan was before the Committee for noting. Decision The Environment, Development and Infrastructure Committee noted the content of the workplan. (Reference: Environment, Development and Infrastructure Committee workplan dated March 2024, submitted) VALEDICTORY The Chair acknowledged that Veronica MacFarlane, Personal Assistant to Executive Director Kirsty Flanagan would be retiring in May. He congratulated her on her retirement and wished her all the best for the future. Page 11
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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. Page 13 Agenda Item 4
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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. Page 14
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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. Page 15
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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. Page 16
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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 Page 17
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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. Page 18
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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. Page 19
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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 Page 20
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Appendix 1 Empty Business Property - Grant Assessment a: Property: b: NDR Ref: c: Applicant: d: Owner / Tenant e: Tenant: Lease term ___________ 1 Criteria Score 1-5 (1 weak / 5 strong) Score Key people Skills & experience Outlook BUSINESS Experience level & full-time or part-time / seasonal business (start-up/sole trader | established Ltd.Co. | VAT registered) 1-5 Business plan and specialist advisors (engaged with Business Gateway +/or professional services) 1-5 Capacity and capabilities to deliver project (personal experience, skills and track record) 1-5 Property/project will address market failure + create/retain jobs (prominence in town and viable vacancy) 1-5 Priority building Costs Financials PROPERTY & PROJECT Location: Core shopping | town centre | edge of town | BID (Score lower from 5-1 ie: core shopping 5 > BID 1) 1-5 State of repair known (ie: internal / external or condition report available) 1-5 Project costs identified (2-3 quotes) 1-5 Available match funding and ability to cash-flow (evidence required - bank statement etc) 1-5 Criteria Score 1-5 (1 weak / 5 strong) Score LDP APAG BID Economic Place TOWN / LOCAL ECONOMY Positive contribution to streetscape / place-making (Conservation area, listed building or priority building) 1-5 Vacant property conversion into residential use (5 full / 3 partial / 1 None ) 1-5 Supporting a key sector or community wealth building (tourism, food & drink, creative industries) 1-5 Non-domestic rates receipts 5 - (RV> £20,000, RV £12,000-£20,000, RV <£12,000) - 1 1-5 Legal Financial Reputational RISK Risk of cost to Council if nothing done. (Includes possible enforcement or urgent works) 1-5 Owner/property is the subject of enforcement notices, insolvency or death/executor of estate (No 5 – Yes 1) 1-5 Complexities due to consents / regulation / third party grants (No 5 – Yes 1) 1-5 Likely impact on town centre and other businesses (+ for business community & wider economic development) 1-5 Total Page 21
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Appendix 1 Empty Business Property - Grant Assessment a: Property: b: NDR Ref: c: Applicant: d: Owner / Tenant e: Tenant: Lease term ___________ 2 The property and project proposal should score at least 50 points out of 80 to qualify. Notes/comments Scored by: Reviewed by: Date: Empty Property Officer Recommendation Senior Officer Review Page 22
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Appendix 2 – Before and After Images These are indicative of the potential outputs from grant intervention of an empty property (listed building) in Helensburgh town centre. Before After Page 23
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ARGYLL AND BUTE COUNCIL ENVIRONMENT, DEVELOPMENT AND INFRASTRUCTURE COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 19 JUNE 2025 HOUSING EMERGENCY UPDATE 1.0 EXECUTIVE SUMMARY 1.1 In June 2023 the Council’s Environment, Development and Infrastructure (EDI) Committee declared a Housing Emergency due to a consistent reduction in the supply of housing, a steady increase in demand for housing across all tenures and increasing levels of un-affordability. 1.2 Members have requested regular updates on activity to tackle the housing emergency. In November 2024, Council agreed an update to the Local Housing Strategy, incorporating the Housing Emergency Action Plan, and a set of Housing Emergency Progress Metrics. It was agreed these would all be reported to Council annually in November. 1.3 The purpose of this report is to provide Members with a high level synopsis of the considerable volume of wide ranging activity which is underway, often well in advance of houses being completed and handed over, such is the long term nature of development. This synopsis is a snapshot of activity in the housing system in the last six months. 1.4 Activity includes: engaging directly with Scottish Government; developing Strategic Development Frameworks to facilitate long-term delivery, securing national funding investment into housing projects in the area; working towards delivery of worker housing on Mull, engaging with infrastructure providers to provide worker housing; and partnering with RSL’s and community housing groups to facilitate housing developments. RECOMMENDATION Members of the Environment, Development and Infrastructure Committee are asked to consider the content of the report. Page 25 Agenda Item 5
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ARGYLL AND BUTE COUNCIL ENVIRONMENT, DEVELOPMENT AND INFRASTRUCTURE COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 19 JUNE 2025 HOUSING EMERGENCY UPDATE 2.0 INTRODUCTION 2.1 The purpose of this report is to inform Members on progress made in terms of the Council tackling the Housing Emergency in Argyll and Bute. The last report on this issue was to Council in November 2024 Nov 2024 LHS Update and Housing Emergency Report . This report focuses on progress since that date. 3.0 RECOMMENDATIONS 3.1 Members of the Environment, Development and Infrastructure Committee are asked to consider the content of the report. 4.0 DETAIL 4.1 Members have requested regular updates on activity to tackle the Housing Emergency. In November 2024, Council agreed an update to the Local Housing Strategy Incorporating the Housing Emergency Action Plan, and a set of Housing Emergency Progress Metrics. It was agreed these would all be reported to Council annually in November. The purpose of this report is to provide members with a high level synopsis of the considerable volume of wide ranging activity which is underway, often well in advance of houses being completed and handed over, such is the long term nature of development. This synopsis is a snapshot of activity in the housing system in the last six months. Homes Consented 4.2 From the declaration of the Housing Emergency in June 2023 until the end of February 2025 the Council granted planning consent for 860 residential units. Page 26
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Scottish Government Engagement 4.3 In November 2024, Members of the Scottish Government, Local Government, Housing and Planning Committee, visited Oban. They meet with the Council’s leader Jim Lynch, CEO Pippa Milne, other senior council officials, and representatives from the Link Housing Group together with a representative from the Colonsay Community Development Company. The day also included a visit to the Dunbeg Corridor housing development. The Scottish Government has produced a report of the visit which can be accessed here: Scottish Govt Report on Housing Emergency Visit to Argyll and Bute . A number of requests and suggestions for Scottish Government were made at the meeting and these are summarised in appendix 1 to this report. Preparing Strategic Development Frameworks 4.4 In January 2025 consultants were engaged, to develop the Strategic Development Frameworks for Oban (OSDF) and Helensburgh (HSDF). Both these are intended to identify long-term 20-40 years strategic development opportunities. By doing this we will set a long term framework that can be used to direct infrastructure investment and create a pipeline of deliverable development land, particularly housing supply but also other related community, public service and economic development land. Initial desk-top and baseline surveys have been ongoing and the development of preliminary options for assessment. Early engagement with community representatives, members, and key stakeholders are planned over the summer months. These pieces of work will ultimately feed in to LDP3. Page 27
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Securing External Housing Funding Investment 4.5 The Council has continued to develop Business Cases for the proposals for a worker accommodation pilot on Mull, and market housing for principal home occupation on Islay. Delivering Tobermory Worker Housing 4.6 The Council has employed local contractors and is working with MICT to deliver worker housing in Tobermory, on-site infrastructure is currently being installed and will be complete by July 2025. Work is underway to procure tender costs for construction of the worker housing which will provide 12 units. It is anticipated a site start for building construction in spring 2025. Improving Home Energy Efficiency and Fuel Poverty 4.7 A Local Heat and Energy Efficiency Strategy was approved by Council in November. This sets out a policy framework that assists in reducing fuel poverty in the long term. Officers will now work to identify deliverable projects, and use the LHEES to support funding applications. 4.8 The HEEPS:ABS programme allows homeowners and private rented tenants to reduce their energy bills, assists with the cost-of-living crisis and reduces Page 28
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energy consumption contributing to a reduction in climate change The Council fully utilised it HEEPS:ABS funding of £1,979,827 for 24/25. Looking at the full history of HEEPS:ABS programmes, from 2013 to Sept 2024,there have been 4,161 energy improvement measure installations in Argyll and Bute. There has been a focus on external and internal wall insulation. Most of the properties are owner occupied, many built between 1950 and 1983. A significant proportion are in the most deprived areas of Argyll and Bute. Most properties experience a benefit in their EPC ratings meaning warmer and more efficient homes. Worker Accommodation from Infrastructure Providers 4.9 Officers continue to work with SSEN to deliver their worker housing strategy in association with the delivery of the overhead powerline projects they have ongoing. Principle activity has seen the development of dedicated worker accommodation being provided at Kilmory Industrial Estate and other locations. The effect of this is to significantly reduce the impact on the local housing market, but also to provide servicing and infrastructure investment in the Kilmory Industrial Estate. As a parallel activity, work is underway to establish if the vacant Muthu Hotel in Dalmally can be brought into use. This could potentially see an investment of over £1.5m into refurbishing the hotel although figures and contracts are to be confirmed. There is ongoing engagement with SSEN at a Senior Management level. One priority begin explored is the potential for further investment by SSEN in legacy housing, and options are still being explored. Page 29
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Empty Homes for Workers 4.10 Our Empty Homes Officer project, working with the HSCP solely to assist empty homes owners to bring back properties in to use for HSCP staff has received national recognition through an award from the Empty Homes Network. This project is directly supporting the retention and recruitment of the key workforce required to sustain essential services and making the best use of existing stock. The role has directly enabled homes and bed spaces for use by HSCP workers in Col, Connel, Tiree & Islay. RSL Housing Provision & Pipeline 4.11 ACHA has submitted a planning application for 37 units at Dalintober, Campbeltown and has programmed a site start by end of 2025 subject to achieving grant funding. Page 30
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4.12 ACHA is negotiating with Islay Estates to unlock delivery of 17 units at Bowmore Phase 4 which has planning consent. The Council is engaging with both parties to identify how necessary infrastructure might be facilitated. 4.13 ACHA has acquired land in Port Ellen, Islay which was identified in the LDP for 50 units (H3025). They are now exploring detailed design to identify an appropriate number of units and efficient use of the site. Page 31
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4.14 ACHA has acquired a site in Glenmachrie, Islay which has potential to deliver up to 27 units but this density of development needs to be explored with the planning department. 4.15 ACHA has acquired a site on Alexander Street, Dunoon which already enjoys planning consent. ACHA are exploring the potential to increase capacity of the site to 150 units subject to achieving planning consent Page 32
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4.16 ACHA is pursuing purchase of a site in Tayvallich which is part of H3015 in LDP2 and has potential to deliver 2 – 4 units. 4.17 ACHA is exploring site acquisition options on Tiree which could deliver 10 units, but subject to ACHA satisfaction on local housing demand. Page 33
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4.18 ACHA is exploring potential acquisition of land in Tarbet on LDP2 allocation H3024 which has the potential to deliver between 50 and 100 units. 4.19 ACHA are negotiating a turnkey development for 8 shared equity cottage flat units at Blairvadach, Rhu which is programmed to complete in April 2026. 4.20 ACHA has acquired Tarbet Police Station and are working on designs for conversion to a 2 bed bungalow. 4.21 Dunbritton Housing Association is engaged with identifying a suitable re- development for a site on Grant Street, Helensburgh which was the site of a former church. The site is constrained in terms of capacity but may deliver in excess of 10 units subject to achieving planning consent and a site start is targeted for spring 2026. Page 34
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4.22 Dunbritton is working with CALA to develop 30 affordable units in Cardross likely to be delivered in two phases and programmed to complete by Autumn 2027. 4.23 West Highland Housing Association is in the process of delivering 12 social rent and 4 shared equity units at Port Charlotte, Islay, and completion is planned for August 2025. Page 35
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4.24 West Highland is developing detailed designs for a further 6 units on the Port Charlotte site. 4.25 West Highland has handed over 16 social rent units and 4 shared equity uints at Port Ellen, Islay. Work is underway to deliver a further 20 units as Phase 5 of Imeraval, and this is due for completion December 2025. The Council Roads Department is engaging with Calmac to facilitate delivery of the necessary road surfacing materials. 4.26 West Highland are exploring the feasibility of a 4 unit re-development in Campbell Street, Oban with Scottish Government and the Council. The re- Page 36
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development would be a key regeneration opportunity in the town as well as valuable housing supply. 4.27 West Highland has commenced advance infrastructure works for 5 units at Port Mor, Colonsay, and due to complete in October 2025. Page 37
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4.28 West Highland has acquired land at Shillinghill, Tobermory, have achieved planning consent for 10 units, and are in the process of agreeing a grant request with Scottish Government. 4.29 West Highland is developing a planning application for 16 social rent units at Dalmally subject to site acquisition negotiations. Page 38
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4.30 West Highland is in the process of acquiring Dalmally Police House & Station subject to achieving planning and funding. 4.31 West Highland is working with the Council to design infrastructure works which will facilitate the development of the Old Hospital Site on Ganavan Road, Oban which would deliver 50 units. 4.32 West Highland is in negotiations with the contractor for Cruachan refurbishment project which is going ahead. The contractor will potentially utilise the West Highland’s Loch Awe site, facilitating construction of a road access and services which will later help to enable housing construction. Page 39
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4.33 Fyne Homes has submitted a planning application for 16 units in Inveraray, but awaits re-design to account for noise mitigation resulting from adjacent BEAR Scotland depot. 4.34 Fyne Homes purchased land for the Baddens Phase 10 development and is currently pursuing planning consent for 14 units with a programmed completion date currently being November 2026. Page 40
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4.35 Fyne Homes has been granted a planning permission in principle for development of 55 units at Burns Brae/Wallace Way Lochgilphead. The site has been acquired from the Council and detailed designs are being developed. 4.36 The Council approved planning consent for the demolition of the Lower Academy Building, Rothesay. Fyne Homes is procuring a demolition survey to proceed to a tender for demolition costs. Discussions are ongoing with Scottish Government to fund the demolition. Page 41
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4.37 Fyne Homes is tendering for 8 social rent units at Ballochgoy Rothesay after the failure of a previous tender process involving modular construction. Site completion is currently programmed for summer 2026. 4.38 Fyne Homes completed re-development of 8 social units at Wilkie Houses, Rothesay in March 2025 with an opening in 2025. 4.39 Trust Housing Association, in partnership with Scottish Government and Argyll and Bute Council, has begun transforming their existing Manse Gardens, Strachur development into 16 fully refurbished and energy efficient homes for existing and new customers. Work began on site March 2025. 4.40 In February 2025, LINK Group submitted four planning applications for phase 4 Dunbeg, which will deliver a Distributor Road Network including a trunk road roundabout, a phased commercial area, and 433 homes including: • Social Rent = 150 No • Mid Market Rent (MMR) – 48 No • New Supply Shared Equity (NSSE) – 40 No • Elderly Living – 31 No (16 NSSE & 15 Rent) • Student Accommodation – 31 No • Private Housing – 133 No. Page 42
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4.41 At the same time, the Scottish Government has also agreed a ten year extension to the Council’s Lorn Arc TIF scheme. These are both major milestones in progressing to the start of construction for this significant Page 43
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investment in the Oban area, projected to add £179m in Net Present Value to the local area. Community Housing Projects 4.42 Colonsay Community Development Company has started handovers of a 12 unit mixed tenure dev at Scalasaig (SHF funding and loan included). 4.43 Isle of Gigha Heritage Trust is close to completion of 5 affordable units at Ardminish. 4.44 Tiree Community Development Trust has completed a purchase of land for housing development and have gained Rural and Islands Feasibility Funding. Page 44
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4.45 The Hynish Trust on Tyree has been granted Strategic Housing Fund grants to bring back 6 properties back in to use, and they are exploring Rural and Islands Housing Fund to bring a further 6 properties back in to use. 4.46 Luing Community Trust has worked with second home owners to bring properties back into long term let rent for workers on the island. They are exploring new build opportunities. 4.47 Colonsay Community Development Trust continue to advertise 3 self-build plots. 4.48 Ardkinglas Estate has submitted an expression of interest for Rural and Islands Housing Funding to deliver 4 affordable houses within existing buildings on the Estate. 4.49 Islay Development Initiative is pursuing a variety of housing proposals and the Council is engaging with them to pull together a single housing document approach. 4.50 South West Mull and Iona Development Trust is exploring housing opportunities in Bunessan and the Ross of Mull. 4.51 On Kerrera, the MacDougall of Dunollie Preservation Trust is exploring options to refurbish the Ferry House on Kerrera for affordable housing. 4.52 Tayvallich Housing Initiative has registered as a Private Landlord and has let two properties. They are exploring 3 sites with a potential to deliver 20 affordable homes. 4.53 Mull and Iona Community Trust (MICT) has set up an Iona Housing Steering group to look at delivering affordable housing on the island and bringing existing buildings on the island back in to use. The Iona Community is exploring redevelopment options of the MacLeod Building and are in discussion with MICT and the Council. 4.54 MICT is pursuing two open market housing acquisitions on Mull, in Dervaig and Craignure. They are looking to purchase land in Fishnish for delivery of new build affordable housing. 4.55 Dalavich Improvement group is working with the Council, using the Community Housing Assessment Toolkit to assess local housing needs and demand . 4.56 Arrochar, Tarbet and Ardlui Community Council has worked with the Council to produce a local Housing Needs and Demand Assessment which would support funding applications. 5.0 CONCLUSION 5.1 The Housing Emergency was declared due to a whole housing system failure and addressing the issues behind the failure will take time to address and require a partnership approach. Members requested periodic update in activity addressing the Housing Emergency. This report demonstrates the wide range of actions that Page 45
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are being taken forward within the context of reduced resources for the delivery of new homes at a national level. That said, the council continues to work with the Government, key agencies and our housing delivery partners to make progress including exploring new methods and solutions to tackle housing shortages across the local authority area, but many of these will take time to come to fruition. 6.0 IMPLICATIONS 6.1 Policy - the ongoing activity is consistent with current Council priorities and the Local Housing Strategy vision and outcomes which are directly aligned with the overarching objectives of the Outcome Improvement Plan – outcome 2: Housing. 6.2 Financial - none directly arising from this report but future housing delivery actions will require additional funding at some stage from the Council and our partners if delivery is to be accelerated 6.3 Legal – None. 6.4 HR – None. 6.5 Customer Service – none. 6.6 Risk - there is a risk of depopulation, damage to the economy a risk to delivering essential services in the local authority area if partners cannot effectively tackle the Housing Emergency. 6.7 Climate Change – new housing in the right location helps reduce carbon outputs when delivered using renewable energy and other measures. Making best use of existing stock by delivering energy efficiency measures helps towards achieving climate change targets. 6.8 Fairer Scotland Duty – Socio-economic Duty – the delivery of housing across Argyll and Bute facilitates socio-economic opportunities for all. The housing plans in the report link to the Child Poverty Strategy. 6.9 Equalities - protected characteristics - the activity outlined in the report is consistent with the aims and objectives set out in the Local Housing Strategy which is subject to an EQIA. There are targets within the housing plans to deliver housing which meet the needs of specialist groups 6.10 Consumer Duty – none. 6.11 Island Communities – many of the housing projects detailed in the report are being delivered on islands which will provide many benefits such as employment and the continued delivery of essential services to island communities. Page 46
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6.12 Children’s Rights and Wellbeing – the delivery of more housing will enable more children to have a safe secure environment. The housing plans also have clear links to the Child Poverty Strategy. Kirsty Flanagan, Executive Director with responsibility for Development and Economic Growth Councillor Jim Lynch Policy Lead for Economic Development, Housing, Communities and Islands June 2025 For further information contact: Fergus Murray – Head of Development and Economic Growth fergus.murray@argyll.bute.gov.uk Matt Mulderrig – Development Policy and Housing Manager matt.mulderrig@argyll-bute.gov.uk Douglas Whyte – Team Lead – Housing Strategy douglas.whyte@argyll-bute.gov.uk APPENDICES Appendix 1 - Actions suggested for Scottish Government during meeting with Scottish Government Local Government, Planning and Housing Committee (Nov 2024) Page 47
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Appendix 1 Actions suggested for Scottish Government during meeting with Scottish Government Local Government, Planning and Housing Committee (Nov 2024) Actions suggested for the Scottish Government: • Market failure needs intervention and radical thinking, and there needs to be a long-term and continuous approach to housing. • More funding flexibility is required, such as with the housing infrastructure fund (HIF). Devolution of funding to councils could be considered. • The council would like to be able to accrue funds from underspend in the Affordable Homes Supply Programme (AHSP). • There needs to be advance investment in critical infrastructure (such as a new access road to Dunbeg in Oban). • The AHSP Grant Benchmark threshold is too low to buy back properties – there needs to be a higher % of funding. • Community housing trusts are looking to deliver housing, but without expertise in development they need support and seed funding. • Key worker housing is important, and the council needs to be able to provide shorter tenures and dispose of sites. However, funding through the AHSP and other funds will not allow this. • A pilot of shorter tenures is taking place in Mull, which the council would like to fund through Resource Planning Assumptions. • Regulations on housing and planning need to be more joined-up in order to tackle a complex system, considering the impact of regulation on the whole system (such as a possible cladding levy negatively impacting on housing supply). • For example, currently an increase in council tax for second homes can be avoided by property owners registering their main residence in another authority (which is not charging increased council tax) as their second property; a combined approach across authorities may therefore be needed. • Consideration of a new Planning Use class for ‘non-principal homes’ would augment provisions for increased council tax, short-term let licensing and planning control areas. • Need for compulsory sales orders and for a land and property tax, which could lead to less people likely to ‘sit’ on land and property. The need for flexibility in funding and regulations: • With the Rural and Islands Housing Fund completions need to take place pre- election, which limits the feasibility studies that can be carried out now (as any project is unlikely to be completed pre-election). This demonstrates the need for long term certainty of funding, and the hope is that the fund will be reinstated post election. • There need to be more flexible grant conditions in the Affordable Housing Supply Programme and other funds. • Important to avoid unintended impacts of legislation e.g.: o Infrastructure levy would have negative impact on builds o Cladding levy – would be unfair for local developers who haven’t used cladding Page 48
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o Passivhaus standard – there are few contractors available, and they would not go to remote builds. Something instead ‘near’ Passivhaus would be sufficient and more cost effective. • Investment in renewals and transmission to the national grid could have an impact on housing – local distribution of renewable energy is needed. Page 49
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ARGYLL AND BUTE COUNCIL ENVIRONMENT, DEVELOPMENT AND INFRASTRUCTURE DEVELOPMENT & ECONOMIC GROWTH 19TH JUNE 2025 COMMUNITY WEALTH BUILDING BILL AND CRUISE SHIP LEVY BILL CONSULTATONS: ARGYLL AND BUTE COUNCIL OFFICER RESPONSES 1.0 INTRODUCTION 1.1 The purpose of this paper is to inform the Environment, Development and Infrastructure (EDI) Committee with the Argyll and Bute Council officer responses to the recent ‘call for views’ consultations for the proposed Community Wealth Building (Scotland) Bill and the Cruise Ship Levy (Scotland) Bill currently progressing through the Scottish Parliament. 1.2 The detailed Argyll and Bute officer response to each of the consultation questions is outlined for the Community Wealth Building Bill and the Cruise Ship Levy Bill in Appendices 1 and 2 respectively. 1.3 The submission deadline for the Community Wealth Building Bill consultation was Monday, 26th May (updated from Friday, 23rd May) and Friday, 30th May for the Cruise Ship Levy Bill. Therefore, this paper has been prepared for the EDI Committee on 19th June 2025 to enable members to homologate the submitted responses. 1.4 The Argyll and Bute officer response to the Community Wealth Building Bill has contributed to a collective response from the Scottish Local Authorities Economic Development (SLAED) Executive. It is proposed that a letter on some of the overarching issues for a Cruise Ship Levy (Scotland) Bill (see paragraph 3.10) noted by the seven local authorities located across the Highlands and Islands who are part of a Highlands and Islands Regional Economic Partnership Visitor Levy/Cruise Ship Levy Short Life Working Group will be send to Shona Robison, MSP, Cabinet Secretary for Finance and Local Government. 2.0 RECOMMENDATIONS 2.1 Members of EDI are asked to: • Note the content of this report. • Note the Argyll and Bute Council officer responses to the questions in both consultations in Appendix 1 and Appendix 2. As the deadline for submission to the Scottish Government was 26th May and 30th May respectively, officers submitted responses aligned to the requested timetable. The responses were considered and commentary provided for inclusion in the submissions by members of the Executive Leadership Team. In addition. the Argyll Islands Sounding Board considered the response to the Cruise Ship Levy (Scotland) Bill. Page 51 Agenda Item 6
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• Agree to homologate the officer responses. As the consultations have closed officers suggest that any additional substantive comments from members of this committee could be submitted in writing to Tom Arthur, MSP, Minister for Employment and Investment (where Community Wealth Building is included in his portfolio) and on the Cruise Ship Levy to Shona Robison, MSP and Cabinet Secretary for Finance and Local Government. 3.0 DETAIL Community Wealth Building (Scotland) Bill 3.1 The Community Wealth Building (Scotland) Bill aims to ensure that local authorities and other parts of the public sector implement community wealth building across Scotland. 3.2 Community Wealth Building is a practical approach to local economic development that supports the delivery of a wellbeing economy. It uses the economic power of ‘anchor’ institutions to try and stimulate and retain economic activity within a local economy. Anchor institutions are public, private or third sector bodies that have a large enough presence in a local economy to change economic outcomes. The Bill, however, only places duties on public sector organisations. 3.3 There are five ‘pillars’ to Community Wealth Building as follows: • Spending: maximising community benefits through procurement and commissioning, developing good enterprises, fair work and shorter supply chains. • Workforce: increasing Fair Work and developing local labour markets that support wellbeing of communities. • Land and Property: growing social, ecological, financial, and economic value that local communities gain from land and property assets. • Inclusive Ownership: developing more local and social enterprises which generate community wealth, including social enterprises, employee-owned firms, and cooperatives. • Finance: ensuring that flows of investment and financial institutions work for local people, communities, and businesses. 3.4 Much of this activity is already happening across Argyll and Bute - and with increasing prevalence. Local authorities currently have permissive powers over economic development. This means that they can undertake economic development activities, such as funding business support services. The Bill would place statutory duties on local authorities in relation to how they approach economic development. 3.5 There is concern around whether the duties are proportionate to the current staff capacity and resource levels of public sector organisations. Like other local authority areas, Argyll and Bute is already under considerable financial and staffing pressures, so without sufficient funding and support (particularly the required staff costs of circa £70k), the new duties are at risk of becoming a tick-box exercise rather than delivering meaningful change. Page 52
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3.6 Success of the Bill will depend on whether the Scottish Government provides adequate financial and practical support alongside the legislation. In particular, direction is required on how existing activities can be aligned to the CWB pillars. 3.7 Appendix 1 outlines the Argyll and Bute Council officer responses to a variety of questions on the proposed Community Wealth Building (Scotland Bill). Cruise Ship Levy (Scotland) Bill 3.8 The Scottish Government is bringing forward legislation (Bill) to give local authorities new powers to introduce a Cruise Ship Levy. This aligns with the Verity House Agreement, July 2023, part of the New Deal with Local Government, which includes a commitment to provide greater flexibility for local authorities over financial arrangements. This commitment includes consideration of further revenue raising powers for local government. 3.9 Appendix 2 outlines the Argyll and Bute Council officer responses to a variety of questions. 3.10 A summary of issues, not all captured due to the questions posed, are as follows: • A Cruise Ship Levy should be based on an overarching principle of simplicity both in terms of the process surrounding the introduction of powers and design. • Levy powers will provide local authorities with key additional resources for investment in vital local services. This could improve tourism offer for Argyll and Bute. • Local flexibility should be a key element of a Cruise Ship Levy. There should be no national direction on the rates set by local authorities and the use of revenue should be up to the discretion of local authorities. It is noted that guidance could potentially encourage regional collaboration to reflect the unique nature of the Cruise Ship Levy market throughout the process of developing levy schemes, but this will need to be articulated clearly on how this would work in practice • The administrative burden of a Cruise Ship Levy should be minimised as much as possible. This will require careful consideration on whether to charge the levy on a per passenger basis (more straightforward for administrative purposes) or based on the number of passengers who disembark at that destination. • The powers contained in any legislation should be expanded to allow local authorities with islands to apply a Cruise Ship Levy at the point of entry. This could also apply to motorhomes and could offer an alternative to a Visitor Levy for island communities being charged solely for overnight accommodation, as under the current Visitor Levy (Scotland) Act 2024. • The consideration of environmental impacts of cruise ships should not be considered in this legislation. This would over complicate the policy rationale Page 53
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behind a Cruise Ship Levy at the outset. Environmental levies on all vessels calling into harbours are already applied in many areas. 4.0 CONCLUSION 4.1 The detailed Argyll and Bute officer response to each of the consultation questions is outlined for the Community Wealth Building Bill and the Cruise Ship Levy Bill in Appendices 1 and 2 respectively. 4.2 It is anticipated that there will be ongoing discussions on these Bills, with updates provided to members of the EDI Committee as appropriate, as both pieces of legislation progress through the Scottish Parliament. 5.0 IMPLICATIONS 5.1 Policy – Community Wealth Building (Scotland) Bill and the Cruise Ship Levy (Scotland) Bill currently progressing through the Scottish Parliament. 5.2 Financial – Argyll and Bute is already under considerable financial and staffing pressures, so new legislative duties for local authorities should be accompanied by sufficient funding and support. 5.3 Legal – none until the Bills have been passed and become an Act of Parliament. 5.4 HR – staffing required to support delivery of additional statutory policy requirements associated with the Community Wealth Building Bill (as per the Financial Memorandum) and to consider the practicalities of introducing a Cruise Ship Levy for Argyll and Bute. 5.5 Customer Service – none. 5.6 Risk - limited staff capacity to implement the required Community Wealth Building activity including the preparation of an Action Plan and the consideration and necessary consultation activity for a Cruise Ship Levy. 5.7 Climate Change – none. 5.8 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. 5.9 Equalities (protected characteristics) - all activities will comply with all Equal Opportunities policies and obligations. 5.10 Consumer Duty - all activities will comply with the council’s Consumer Duty. Page 54
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5.11 Island Communities - all policy activity will include islands. Specific consideration to be given to a point of entry visitor levy for islands. 5.12 Children’s Rights and Wellbeing – none. Kirsty Flanagan, Executive Director responsible for Development and Economic Growth Policy Lead for Business Development, Councillor Math Campbell-Sturgess Policy Lead for Community Wealth Building, Councillor Mark Irvine 28th May 2025 For further information contact: Fergus Murray, Head of Development and Economic Growth Tel: 01546 604293 and e-mail: fergus.murray@argyll-bute.gov.uk Ishabel Bremner, Economic Growth Manager Tel: 01546 604375 and e-mail: ishabel.bremner@argyll-bute.gov.uk APPENDICES Appendix 1: Argyll and Bute Officer Response to the Community Wealth Building (Scotland) Bill consultation. Appendix 2: Argyll and Bute Officer Response to the Cruise Ship Levy Consultation. Page 55
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Appendix 1: Argyll and Bute Officer Response to the Community Wealth Building (Scotland) Bill consultation Question page 1 1 The Scottish Government’s objective is to ensure consistent implementation of Community Wealth Building across Scotland. (a) Do you think the proposed Bill will achieve this objective? The CWB Bill is a constructive step to formally recognise CWB as a strategic approach to economic development, particularly as this is not currently a statutory function for local authorities. However, success will depend on how it is implemented – particularly in relation to resources, clarity of guidance, and capacity-building. It provides a national framework, while also allowing for local flexibility, as well as fostering collaboration and partnership working between anchor institutions to address local needs, priorities and opportunities. However, the Bill lacks detail, particularly around how public bodies will be supported to meet the obligations, move beyond high-level commitment to achieve meaningful change. It is suggested that the Bill is a steppingstone, and that robust legislation is needed to embed the aspirations of fairness, equity, and sustainability. It will be important to ensure that the guidance helps local authorities to recognise how existing activities already contribute to the CWB agenda, and what changes could be made to redirect existing efforts and avoid the perception that the CWB requirements are an additional burden. Without sufficient resourcing, such as the financial support to fund a CWB team leader post (including on-costs), as outlined in the Financial Memorandum, meeting the requirements of the Bill could become a tick-box exercise, rather than a catalyst for genuine local economic transformation. (b) Does the Scottish Government need to change the law to achieve this objective? Yes. Please explain your answer. Changing the law is necessary to ensure consistent, accountable, and meaningful implementation of CWB across Scotland. Introducing a statutory duty would formalise CWB as a core function for local authorities, raising its profile and strengthening accountability. It would also ensure that all local authorities are required to embed CWB principles in their operations. While the CWB Bill frames CWB as an economic development approach, the approach has significant impacts on and interdependencies with a wide range of policy areas for local authorities and partners, including procurement, fair work, land use, housing, and community empowerment. Legislation would provide the legal basis to support a more inclusive, community-focused approach, supporting prioritisation of community benefit and local impact in policy and decision-making. However, legislation alone is not sufficient. To ensure successful implementation, it must be underpinned by clear and practical guidance, adequate financial revenue support to fund staffing costs, capacity-building support, and robust monitoring and evaluation mechanisms. Complementary legislative changes – particularly in procurement – are also needed to Page 56
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empower public bodies to support local employment, investment, and supply chains. A clearer timeline for wider reforms, such as updates to the Procurement Reform (Scotland) Act 2014, would provide valuable context for local authorities planning to prepare CWB plans. (c) Are there other ways in which the Scottish Government could achieve this objective? Please explain your answer In addition to legislation, consistent implementation will need to be underpinned by a range of complementary measures to ensure that all local authorities and anchor institutions are equipped to deliver effectively. The need for targeted local authority funding, including dedicated financial resources (such as staffing costs) to support CWB activity would enable local authorities to engage more fully in delivering CWB priorities, particularly in areas such as Argyll and Bute with stretched budgets and a vast dispersed geography of fragile rural/island economies facing complex local economic challenges. Local authority funding could be targeted at projects that promote local employment, build local business bases, and enhance the resilience of local economies. In addition to funding, there is a need for clear national guidance and standards. Robust frameworks and practical toolkits would provide direction and consistency across public bodies. These materials would support a shared understanding of what effective CWB practice looks like and support consistency across areas while still allowing for local variability. Clarity around expectations would help ensure that CWB becomes embedded in everyday decision-making. A national monitoring and reporting framework, underpinned by consistent measures and indicators, would help to promote transparency, track progress, and assess the local and collective impact of CWB. Embedding CWB within existing policy and funding structures would support consistent and effective implementation. Integrating CWB principles into procurement legislation, economic development strategies, growth deals, and other mechanisms would help mainstream the approach and avoid duplication or fragmentation. Many anchor organisations at the local Argyll and Bute level will require additional support to build the internal skills, leadership capacity, and cross-sector collaboration needed to progress CWB. Targeted training and shared learning opportunities could help address gaps and support capacity building. As well as ensuring internal buy-in, public engagement in the development of CWB plans is essential to ensure that community voices, needs and aspirations are also reflected. There is significant value in existing networks, particularly the CWB Practitioners’ Network, which play a vital role in knowledge exchange and peer to peer support, as well as fostering collaboration and building understanding of CWB principles. Maintaining and expanding these networks would enable local authorities and partners to exchange examples of good practice, explore challenges, and co-develop solutions. Page 57
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2 The Bill would place extra duties on some public sector organisations. Are these duties proportionate? Do these organisations have the capacity and resources to meet the duties placed on them? The duties are broadly positive and aligned with the ambition of embedding CWB principles across Scotland. However, there is concern around whether the duties are proportionate to the current staff capacity and resource levels of public sector organisations. Like other local authority areas, Argyll and Bute is already under considerable financial and staffing pressures, so without sufficient funding and support (particularly the required staff costs of circa £70k), the new duties are at risk of becoming a tick-box exercise rather than delivering meaningful change. Success of the Bill will depend on whether the Scottish Government provides adequate financial and practical support alongside the legislation. In particular, direction is required on how existing activities can be aligned to the CWB pillars. 3 Do you agree with the list of relevant public bodies proposed in the Bill? If not, how should these be changed? There is broad agreement with the proposed list of relevant public bodies in that it includes key organisations that significantly shape local and regional economies. However, some additions should be made to better reflect how CWB operates in practice and to increase the potential impacts of partnership working for example local housing bodies and local development trusts should be included as important anchor organisations for Argyll and Bute. Formal recognition should also be given to the third sector, especially through the inclusion of Third Sector Interfaces or social enterprise networks, as a key player in delivering CWB activity at the community level. The current list provides a useful starting point but requires tailoring. It is also important to note the vital roles of the private sector and community stakeholders as these will strengthen implementation potential and better reflect the collaborative, placed-based nature of CWB. Rather than creating new, standalone CWB partnerships, it is suggested that duties could be aligned with existing governance structures such as Community Planning Partnerships to avoid duplication and enhance efficiency. Page 58
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Question page 2 1 Do you agree with the list of specified public bodies proposed in the Bill? If not, how should these be changed? It is currently unclear how agencies have been classified as either ‘specified’ or ‘relevant’ public bodies, and these categories may be too narrow to deliver maximum economic benefit. For example, Forestry and Land Scotland is an agency of the Scottish Government but is also a major procurer of goods and services. Their operations have the potential to benefit local economic development, particularly in the remote, rural and islands communities across Argyll and Bute, and might therefore be considered a relevant body. This is also the case for Crown Estate Scotland through its land and asset management activity. It is noted that Social Security Scotland is not on either of these lists. However, given its role in addressing inequalities its inclusion should be considered. In addition, some of the public bodies listed under the ‘specified’ category are national organisations that do not have an operational presence in remote or rural Scotland. The inclusion of these over bodies with more direct local impact, as noted above, raises questions around the criteria used in classification. The Argyll and Bute Rural Growth Deal also presents an ideal opportunity for alignment as a major vehicle for investment in the local economy; so embedding CWB within the Rural Growth Deal’s governance would strengthen the policy agenda and ensure that future investment delivers wider socio-economic benefit. 2 Are there any ways the law in devolved areas could be changed to facilitate Community Wealth Building that are currently not proposed in the Bill? The Bill is a starting point, but further legislation reform is essential to meaningful delivery. There is a need for better alignment with existing legal frameworks, especially in relation to procurement, land, taxation, and community empowerment. Current procurement law can limit the ability of public bodies to prioritise local suppliers or businesses. Lowering procurement thresholds would allow greater flexibility and make it easier to retain spending within Argyll and Bute, while still maintaining best value and accountability. Best value should not be the sole deciding factor in awarding contracts if a CWB approach is embedded. There is an opportunity to explore the use of local taxation powers, such as tax incentives for businesses that contribute to local economic development or the introduction of a local wealth tax. Expanding housing legislation to better support cooperative and community-led housing models could help address multiple challenges, including fuel poverty and ageing populations. There is concern around the fragmented policy landscape with greater alignment needed to support the effective implementation of CWB. For this to succeed, it must be integrated with the wider focus on public sector reform and devolved policy areas including land use, fair work, finance, planning, housing, taxation, and education. Alignment is also needed with existing statutory duties related to sustainable procurement, participatory budgeting, the circular economy, climate targets, and renewable energy development. Positioning CWB as Page 59
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a cross-cutting framework – rather than a standalone initiative – would help embed its principles more deeply across policy and practice. 3 Are there any potential unintended consequences to the proposed Bill? A key unintended consequence is the increased pressure on resources that will come with the introduction of new legal duties, reporting requirements, and partnership structures, that will further compound existing financial strain. Developing and implementing new approaches in relation to CWB will be resource intensive and require new investment or reprioritisation of existing resources as articulated in the Financial Memorandum. There are concerns about the absence of clear mechanisms for measuring progress. The flexibility of the Bill is welcomed but the lack of proportionate benchmarking and monitoring guidance could result in inconsistencies in delivery, missed opportunities for shared learning, and challenges in holding organisations accountable. The Bill also raises the risk of creating unmet community expectations as opportunities related to asset transfer or land use may be explored without the necessary staffing or resources to support them, potentially leading to reputational damage for public bodies. The timing of the Bill is particularly challenging due to ongoing public sector reform and constrained resources. Without clear integration with existing policies, strategies, and governance structures, there is a risk of duplication, increased bureaucracy, and reduced effectiveness. The risk of unintended consequences could be higher in remote, rural and islands areas across Argyll and Bute where these communities face more acute financial constraints, infrastructure challenges, and limited staff capacity, making implementation more difficult and potentially widening existing inequalities. Where resources are already severely constrained, compliance with CWB requirements is likely to pull resources away from other priorities. Conversely, more affluent areas with greater capacity may be better positioned to implement CWB initiatives, further deepening disparities. There is also potential for economic displacement as prioritisation of local procurement and community ownership could inadvertently disadvantage non-local suppliers and disrupt wider economic ecosystems. To mitigate these risks, financial investment and capacity-building support should be prioritised. Robust monitoring and evaluation measures should be considered, along with strong engagement with local communities throughout the process. Co-production should be a central feature of the guidance to ensure that communities are empowered to shape and help deliver CWB outcomes. Page 60
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Question page 3 1 To what extent will small businesses benefit from this Bill? The CWB Bill has the potential to deliver benefits for SMEs, particularly in relation to reforms to public procurement. Simplifying tendering processes and breaking larger contracts down into smaller lots would allow smaller businesses to bid for public sector contracts, providing enhanced opportunities and growth potential. Expanding the use of tools such as Quick Quote and placing greater emphasis on local supply chains could further reduce barriers and redirect anchor institution spending into the local Argyll and Bute economy. The Bill’s focus on promoting generative business models – such as social enterprises, cooperatives, employee-owned businesses, and supported businesses. However, targeted support for these business models is required, including tailored business advice, training for business advisers to increase understanding of inclusive and democratic ownership models, and the development of incentives to encourage more businesses to adopt these models. Reviewing current tax rules that may discourage inclusive ownership could also be beneficial. Small businesses may also need support to become ready to bid for public sector contracts, including support with fair work practices, succession planning, and building resilient and sustainable business models. Without such support, smaller businesses may continue to be disadvantaged compared to larger firms with more resources and experience in navigating complex procurement processes. It is also important to acknowledge that the Argyll and Bute area does not have a sufficiently diverse or extensive local supplier base to fully realise the ambitions of the CWB approach to procurement, and flexibility will be essential. 2 To what extent will local community organisations benefit from this Bill? The Bill offers potential benefits for local community organisations, particularly by enabling greater influence over local economic development. However, the extent of the benefits will depend on how effectively the Bill is implemented and supported in practice. There is potential for community organisations to play a greater role in shaping local economies, including through improved access to land and buildings via community ownership and asset transfer, and through increased involvement in local planning and decision-making. Greater access to assets could help grow community-led development. However, many community organisations have limited resources, and, without targeted capacity-building, there is a risk that only the most well-established organisations will be able to take advantage of opportunities. Community organisations may also benefit from increased local investment by anchor institutions, and from greater opportunities to shape their communities through enhanced consultation and engagement. Implementation of CWB has the potential to help build a more sustainable Argyll and Bute economy – supporting a stable population, securing employment, delivering higher wages, and using local assets more effectively – contributing to reduced inequality, improved wellbeing, and enhanced resilience. However, realising these outcomes will require inclusive and accessible implementation, underpinned by sustained support. Capacity-building and long-term planning are critical to ensuring equitable participation and avoiding reinforcing existing disparities. Appendix 2: Argyll and Bute Officer Response to the Cruise Ship Levy Consultation Page 61
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Question 1 Do you support giving local authorities the power to create a cruise ship levy in their area, if they wish to do so? √ Yes No Don’t know Please provide the reasons for your answer. Question 2 What alternatives (if any) do you think would achieve the same goals as a cruise ship levy? Please provide details of any alternative option(s). If appropriately designed and implemented, a Cruise Ship Levy could unlock transformational socio-economic benefits for communities across Scotland and improve the nation’s cruise offer by: 1) Supporting long-term investment in destinations: • A Cruise Ship Levy would provide a means for destinations to support and harness the opportunities of cruise tourism while enabling cruise lines and their passengers to contribute to the places they visit. • With tight and uncertain public sector budgets, year-on-year, the proceeds of a Cruise Ship Levy would help local authorities to maintain services and infrastructure that support the visitor experience and used by residents. 2) Forging a relationship between cruise stakeholders and destinations: • Beyond economic benefits, one of the most significant outcomes of the introduction of a Cruise Ship Levy would be the development of a relationship between cruise stakeholders and destinations that could help to reshape cruise tourism into a more sustainable model. • Cruise lines sell the experience of their ships and our places. While they have a relationship with those who facilitate access to destinations, i.e. ports and shore excursion operators, cruise lines often do not have a direct relationship with the communities they visit. The introduction of a Cruise Ship Levy would facilitate a direct, mutually beneficial relationship between cruise lines and destinations via local authorities whose primary obligation serving the interests of local people and their places. For island communities across Argyll and Bute a point of entry levy would achieve the same goals as a Cruise Ship Levy. The introduction of a point of entry levy could be transformational for local authorities with islands, creating a long-term framework to support investment in local infrastructure and services. A well-designed point of entry levy seems a more equitable option, it would enable all visitors, including those arriving onboard cruise ships and in motorhomes, to make a much-needed contribution towards sustaining the islands’ visitor economy. A point of entry levy could offer an alternative to a visitor levy for island communities being charged solely for overnight accommodation, as under the current Visitor Levy (Scotland) Act 2024. Page 62
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Question 3 What should the primary basis of a Cruise Ship Levy charge be, if introduced in Scotland? Select one Tonnage of a ship Passenger capacity of a ship √ Number of passengers on board a ship Number of passengers to disembark from a ship Other (please specify) Don’t know Please provide the reasons for your answer. Question 4 In addition to the main basis of the charge, should any cruise ship levy also take into account the environmental impact of a cruise ship? Yes √ No Don’t know Question 5 Who should collect any cruise ship levy? Select one. Cruise ship operator Port operator Local authority √Other (please specify) Don’t know Please provide the reasons for your answer. To aid simplicity in the implementation of a Cruise Ship Levy, it would be easier to assess the levy to be paid by the number of passengers on board a ship. In particular, the Cruise Ship Levy should be a flat rate per passenger, with actual passenger numbers declared via their agent, reflecting existing national reporting requirements. The application of existing legal mechanisms and practices would ensure simplicity in the design of legislation to enable a Cruise Ship Levy and also facilitate stakeholder understanding and compliance. The usual charging regime for a vessel’s call into port is completed through the designated shipping agent who acts on behalf of the shipowner and, among other things, ensures compliance with local regulations. On this basis, a Cruise Ship Levy could be collected and remitted by shipping agents. Page 63
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Question 6 What enforcement powers should a local authority, or other relevant body, have to ensure compliance (and prevent avoidance and evasion) by those required to pay a cruise ship levy? Please select all of the powers you think the body should have. Powers to request, and obtain or inspect, the information necessary to assess the cruise ship levy liability of a body. √ power to apply a penalty (e.g. a fine) if a cruise ship levy is not paid when it is required to be. power to apply a penalty (e.g. a fine) if a body provides inaccurate information in relation to a cruise ship levy, or destroys requested information. Question 7 Do you think the rate of any cruise ship levy should be set at a national level or should it be for a local authority to decide? Set at the national level √ Decided by local authorities Don’t know Please provide the reasons for your answer. • There should be a balance between local and national consistency on a Cruise Ship Levy rate. Given the unique circumstances of cruise destinations across Scotland, with differing levels of cruise tourism, port ownership models, types and areas of related land-based activity, and local requirements, a one size fits all approach would not be appropriate. • Local authorities are best placed to understand the needs and preferences of their local communities where a Cruise Ship Levy supports local flexibility to respond accordingly. • A degree of national consistency could facilitate greater cruise stakeholder understanding of their obligations and compliance. It could also reduce some complexity in the design of local schemes and support local authorities in establishing joint or regional Cruise Ship Levy schemes where appropriate. • In principle, council officers would be supportive of a discretionary levy that devolves decision-making to local authorities, yet provides some overarching principles set out in national legislation to preserve Scotland’s competitiveness as a premier cruise destination. Page 64
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Question 8 If the rate of any cruise ship levy were to be set by individual local authorities, should an upper limit be set at a national level? Yes √ No Don’t know Question 9 Which (if any) of the following proposed actions do you believe local authorities should be required to undertake before being able to introduce a cruise ship levy? Please select yes, no, or don’t know for each proposed action below. Have held a consultation to gather views from all those who will be affected by a cruise ship levy. √ Yes No Don’t know Have conducted relevant impact assessments, e.g. impact on business, equality impacts, etc. √ Yes No Don’t know Have set and published objectives for any cruise ship levy and what it was seeking to achieve (either directly and/or through the use of revenue raised). √ Yes No Don’t know Have assessed and documented the administrative burden from a proposed cruise ship levy and any steps taken to minimise this. √ Yes No Don’t know Page 65
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If a cruise ship levy rate is set locally, demonstrated why the chosen rate is suitable for that area. √ Yes No Don’t know Have appropriate mechanisms in place to allow for collection (and if necessary remittance) of a cruise ship levy. √ Yes No Don’t know Have made information about the cruise ship levy and how to pay it available in the public domain, for businesses and others. √ Yes No Don’t know Established an approach to monitoring and publicly reporting on revenues raised and their use on an annual basis. √ Yes No Don’t know Established an approach to monitoring and publicly reporting on the impact of a cruise ship levy on an annual basis. √ Yes No Don’t know Question 10 How should revenue raised by a cruise ship levy be used? Select one. √ Revenue raised by a cruise ship levy should be required to be spent on facilities and services used by cruise ship passengers and/or the cruise ship industry. A local authority should be able to use revenue raised by a cruise ship levy in any way it wishes. Don’t know. Page 66
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Please provide the reasons for your answer. Question 11 Should any of the following groups be granted exemptions from payment of a cruise ship levy? Passengers who are 18 years or under Yes √ No Don’t know Passengers who are disabled Yes √ No Don’t know Passengers who are paid carers Yes √ No Don’t know Crew members √ Yes No Don’t know Passengers disembarking at the final port of call Yes √ No Don’t know With tight and uncertain public sector budgets, year-on-year, the proceeds of a Cruise Ship Levy would help local authorities to maintain services and infrastructure that support the visitor experience and used by residents. Page 67
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Question 12 If national exemptions are introduced, do you think local authorities should be able to create additional exemptions at a local level? √ Yes No Don’t know Question 13 Should there be an implementation period for any cruise ship levy? (This would be a required period to run from the time a local authority formally decides to introduce a cruise ship levy to when it came into force). √ Yes No Don’t know Question 14 If there should be an implementation period how long should it be? Select one. Less than 6 months 6 months 12 months One complete financial year √ 18 months More than 18 months Question 15 What, if any, transition arrangements should apply when a cruise ship port call is arranged before a local authority chooses to impose a cruise ship levy, but the port call takes place after the levy has been put in place? √ a cruise ship levy should be paid in this situation a cruise ship levy should not be paid in this situation Page 68
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Question 16 What impact do you think a cruise ship levy would have on the following? Cruise ship operators Very positive impact √ Somewhat positive impact Neither positive nor negative impact Somewhat negative impact Very negative impact Don’t know Ports Very positive impact Somewhat positive impact √ Neither positive nor negative impact Somewhat negative impact Very negative impact Don’t know Businesses linked to cruise ship industry Very positive impact √ Somewhat positive impact Neither positive nor negative impact Somewhat negative impact Very negative impact Don’t know Local Communities Very positive impact √ Somewhat positive impact Neither positive nor negative impact Somewhat negative impact Very negative impact Don’t know Page 69
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Local authorities Very positive impact √ Somewhat positive impact Neither positive nor negative impact Somewhat negative impact Very negative impact Don’t know Scotland as a whole Very positive impact √ Somewhat positive impact Neither positive nor negative impact Somewhat negative impact Very negative impact Don’t know Page 70
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Please provide the reasons for your answer(s). This helps with developing a robust BRIA which considers as wide a range of impacts as possible. If there are any other groups that would be impacted by a cruise ship levy please also list them below, together with the extent to which you believe they would be impacted. The implementation of a Cruise Ship Levy would provide a means for destinations to harness the socio-economic opportunities of cruise tourism by: • Supporting long-term investment. A Cruise Ship Levy would offer long-term benefits for stakeholders through targeted investment in the public realm for which the cost of provision has traditionally been borne by local taxpayers. With tight and uncertain public sector budgets, year-on-year, the proceeds of a Cruise Ship Levy would help local authorities to maintain services and infrastructure that support the visitor experience and used by residents. • Forging cruise stakeholder relationships. Collaborative development and implementation of a Cruise Ship Levy by cruise stakeholders would facilitate a direct relationship between cruise lines and destinations via local authorities. This could deliver mutual benefits for stakeholders, such as community capacity building and industry access, improved visitor management, and innovative product development, improving destinations’ cruise offer while, crucially, helping to garner and maintain local support for cruise tourism. • Enabling viability of other levies. Crucially, the availability of multiple mechanisms to generate revenue from tourism is especially vital as it could enable the viability of levy schemes which may not be practicable on their own. Conversely, a Cruise Ship Levy could potentially have the following adverse effects: • Increasing costs. A Cruise Ship Levy would increase the cost for cruise lines to visit Argyll and Bute, which would likely be passed on to their passengers and reflected in higher-priced cruises. However, the long-term investment enabled through a Cruise Ship Levy would significantly improve the visitor experience, increasing perceived quality and value for money and providing justification for a levy. Additional administration costs would also be introduced for whomever is liable to collect and remit the levy to the local authority (e.g., ships’ agents). This cost would likely be passed on to cruise lines who would, in turn, recover it from their passengers. • Limiting cruise tourism. A Cruise Ship Levy could limit visitor numbers or even deter cruise tourism, which would not only restrain local economic opportunities but could also potentially compromise Scotland’s attractiveness as a cruise destination. Page 71
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Question 17 Would the name ‘cruise ship levy’ be appropriate for a potential levy as explored in this consultation paper? Yes No √ Don’t know If you believe another name would be more appropriate please suggest it below. Question 18 Do you believe local authorities with islands should be given the power to create a broader ‘point of entry’ levy for one or more islands in their area, if they wish to do so? √ Yes No Don’t know Please provide the reasons for your answer. The introduction of a point of entry levy could be transformational for local authorities with islands, creating a long-term framework to support investment in local infrastructure and services. Such a levy would be more equitable and apply to all tourists / visitors and not just those on cruise ships. Consideration should be given to amending the Visitor Levy legislation to enable this and create a wider tourism base of those required to pay a levy (e.g. motorhome owners and cruise ship passengers) and removing the onus for accommodation providers to collect. Page 72
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Question 19 If there any other points you would like to make in relation to a potential cruise ship levy that you have not been able to make elsewhere in this consultation, please add them below. Supplementary information to previous questions: Question 4 – A Cruise Ship Levy should not consider the environmental impact of a cruise ship. This would add a level of complexity to the levy scheme. It would also exclude consideration of the environmental impact of cruise’s related land-based activity as environmental levies on all vessels calling into the harbour areas are already applied in many areas. The Environmental Port Index records where visiting cruise vessels voluntarily provide details on their emissions to participating ports to allow them to understand the emission rates and then define charging strategies. Question 6 – Assuming a Cruise Ship Levy would be based on passenger numbers, with vessels and their agents required to declare these as part of the reporting process, the need to request additional information for levy charges would be eliminated. It is understood that legislation would require a robust enforcement clause and the inclusion of a provisions allowing local authorities to add charges to unpaid levies should be sufficient. Cruise ships frequently call at multiple ports within the same regions, and there is little evidence of non-payment, as the risk of brand damage is too high. A cruise line unwilling to pay a Cruise Ship Levy would likely avoid booking calls at the relevant port. Question 15 – A Cruise Ship Levy should apply to port calls booked before a local authority has decided to introduce a Cruise Ship Levy, provided there has been an implementation period of a minimum 18 months. Page 73
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ARGYLL AND BUTE COUNCIL ENVIRONMENT, DEVELOPMENT AND INFRASTRUCTURE COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 19 JUNE 2025 SCOTTISH GOVERNMENT FUNDING - ISLANDS PROGRAMME, CARBON NEUTRAL ISLANDS CAPITAL FUND AND REGENERATION CAPITAL GRANT FUND 1.0 EXECUTIVE SUMMARY 1.1 The Scottish Government has announced that Islands Programme funding of £5.3m would 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. In addition, a call for stage one Expressions of Interest for Regeneration Capital Grant Fund (RCGF) applications for projects delivering in the 2026/27 financial year has also recently been issued. This paper outlines the funds, the respective requirements for applications to each fund and progress made towards identifying projects for submission. All three funds have made a significant contribution to the delivery of capital projects across Argyll and Bute over previous years. 1.2 Members are asked to note that these are all highly competitive funds and based on previous years it is considered likely that budgets will be oversubscribed. Once applications are submitted, the Transformation Projects and Regeneration Team will continue to have a role in ensuring that we fulfil the grant conditions including monitoring and reporting requirements. Project Officers within lead organisations will be responsible for managing the delivery of successful projects and ensuring all funding is drawn down in line with the criteria for the programme. RECOMMENDATIONS It is recommended that the Environment, Development and Infrastructure Committee:- i). Note the process for applying to the Islands Programme and Carbon Neutral Islands Capital Fund and the 22 July 2025 deadline for applications. Page 75 Agenda Item 7
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ii). Approve the recommended Island Programme projects detailed in paragraph 4.10 that will form the basis of funding bids to the Scottish Government. iii). Approve the submission of any of the potential CNI Capital Fund Projects listed at paragraph 4.15, subject to the project lead determining that this is still a project that should be progressed. iv). Note the process for applying to the Regeneration Capital Grant Fund and the 27 June 2025 stage one deadline. v). Approve the submission of any of the recommended RCGF projects listed at paragraph 4.22 that will form the Expressions of Interest from Argyll and Bute Council to the Regeneration Capital Grant Fund for 2026/27. vi). Agree to delegate authority to the Executive Director with responsibility for Development and Economic Growth to approve the funding applications prior to submission to the Scottish Government. vii). Note that the Transformational Projects and Regeneration Team will be responsible for managing expenditure and ensuring compliance with grant funding conditions for successful projects. Page 76
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ARGYLL AND BUTE COUNCIL ENVIRONMENT, DEVELOPMENT AND INFRASTRUCTURE COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 19 JUNE 2025 SCOTTISH GOVERNMENT FUNDING - ISLANDS PROGRAMME, CARBON NEUTRAL ISLANDS CAPITAL FUND AND REGENERATION CAPITAL GRANT FUND 2.0 INTRODUCTION 2.1 On 13 May 2025, the Scottish Government announced that Islands Programme funding of £5.3m would be available for the 2025/26 financial year to fund capital projects on inhabited Scottish islands. The fund is open to all local authorities in Scotland with inhabited islands and will be distributed on a competitive basis. The fund will be administered by Scottish Futures Trust (SFT) on behalf of the Scottish Government. 2.2 The Scottish Government have also announced a £1.4m fund to support the Carbon Neutral Islands (CNI) in their progression towards net zero. This fund is only open to islands within the Carbon Neutral Islands Programme. Islay is one of six Scottish Islands that is eligible for this funding. CNI funding will also be distributed on a competitive basis for capital projects that support the transition to net zero. This paper provides background to the funds and sets out the proposed projects that will form the basis of funding applications to the Scottish Government. 2.3 On 15 May 2025, the Scottish Government also issued a call for Expressions of Interest for Regeneration Capital Grant Fund (RCGF) applications for projects delivering in the 2026/27 financial year. The fund is available for large scale transformational change projects with strong regeneration outcomes and is open to all local authorities across Scotland and the Clyde Gateway URC. This paper provides background to the fund, the process that has been gone through to identify potential projects and sets out the projects that are proposed to form the expressions of interest to be submitted by the Council. Page 77
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3.0 RECOMMENDATIONS 3.1 It is recommended that the Environment, Development and Infrastructure Committee:- i). Note the process for applying to the Islands Programme and Carbon Neutral Islands Capital Fund and the 22 July 2025 deadline for applications. ii). Approve the recommended Island Programme projects detailed in paragraph 4.10 that will form the basis of funding bids to the Scottish Government. iii). Approve the submission of any of the potential CNI Capital Fund Projects listed at paragraph 4.15, subject to the project lead determining that this is still a project that should be progressed. iv). Note the process for applying to the Regeneration Capital Grant Fund and the 27 June 2025 stage one deadline. v). Approve the submission of any of the recommended RCGF projects listed at paragraph 4.22 that will form the Expressions of Interest from Argyll and Bute Council to the Regeneration Capital Grant Fund for 2026/27. vi). Agree to delegate authority to the Executive Director with responsibility for Development and Economic Growth to approve the funding applications prior to submission to the Scottish Government. vii). Note that the Transformational Projects and Regeneration Team will be responsible for managing expenditure and ensuring compliance with grant funding conditions for successful projects. 4.0 DETAIL Islands Programme 4.1 The key objectives of the Islands Programme for 2025/26 are: • To sustain, enhance and develop transformational and critical infrastructure projects based on local priorities whilst supporting the National Islands Plan. • To reshape infrastructure by supporting shovel worthy projects, co-ordinating with other funded and planned initiatives on the islands to drive sustainable island growth. • To support projects which use clear Place based, Community Wealth principles to support inclusive island growth and reduce poverty while working to achieve the Scottish Government’s Net Zero Ambitions and a Just Transition. • To maximise leverage of partnership, investment, and cross policy funding. Page 78
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4.2 The Council has been successful in securing £1.5m of Islands Programme funding over the last three financial years. This has helped to deliver flood protection, digital infrastructure, care facilities and housing enabling infrastructure on the islands of Mull, Iona, Islay, Tiree and Coll. Funding of £5.3m is available in the 2025/26 financial year and this will be subject to a competitive bidding process. 4.3 In notifying the Council of the opening of the Islands Programme for 2025/26, the Scottish Government advised of the following timescale for submission and determination of applications: • Applications deadline – 22 July 2025 • Investment Panel recommendations – August 2025 • Projects for 2025/26 funding announced – early Autumn 2025 • Grant drawdown / project delivery - to 31 March 2026. It should be noted that the timescale for submission and drawdown of this fund is extremely challenging which requires the Council to prioritise projects that are sufficiently developed to be delivered this financial year. Members are asked to note that there is no facility for funding to be carried forward into the 2026/27 financial year. 4.4 Officers from the Transformation Projects and Regeneration Team have referred to the internal project pipeline and colleagues from other teams and services including the Health and Social Care Partnership to identify viable projects. Due to the short timescale for submission of applications, the fact the application period falls over the summer holiday period and subsidy control regulations, priority has been given to Council and other public sector projects. 4.5 All projects were considered against the following Scottish Government scoring methodology for the fund:- • Deliverability (30%) o Demonstrating Deliverability o Viability • Need and Partnership (35%) • Project Outcomes (35%) 4.6 SFT have emphasised there is a particular importance on deliverability as there is no ability for funding to be carried forward into the next financial year. Projects must be able to demonstrate that a financial commitment (i.e. have spent the money or have a signed contract) will be in place before 31 March 2026, ideally earlier. This is a challenging timescale given the need to follow public procurement regulations, confirm match funding and obtain statutory consents before contracts can be signed. 4.7 The Council have undertaken pre-application discussions with SFT in order to shortlist projects that are considered to have strong alignment with the funding criteria. SFT have advised that the 2025/26 funding will prioritise projects that deliver critical infrastructure and can demonstrate community support. 4.8 Following identification of potential Council led projects, it became clear that there were only a limited number which were suitable and ready to be delivered. On this basis, we Page 79
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took the decision to review potential community projects submitted through the Aspiring Places Portal. Two community projects (Unlocking Ulva and Skerryvore Lighthouse Cottages) have been identified as having a good fit with the objectives of the Islands Programme and as such are being recommended for funding bids to the Scottish Government. 4.9 Further details of priority projects for Islands Programme funding is included in the Table in paragraph 4.10. Given the timescales for submission of applications, work is already underway in preparing these applications for submission before the deadline of 22 July 2025. 4.10 Members are asked to note that funding is sought for the initial pre-construction phases of the Royal Hotel project. Funding from the Islands Programme is sought as part of a package of financial support for this project which includes match funding from the UK Government’s Community Regeneration Partnership, private sector funding and HIE. Project Name - description Project Lead IP funding request Total project value Former Royal Hotel, Rothesay – Detailed design works Transformation Projects and Regeneration £400,000 £6,200,000 Community Digital Hubs Phase 2 Strategic Transportation £100,000 £100,000 Unlocking Ulva – Community Barge Project North West Mull Community Woodland Company £200,000 £200,000 Skerryvore Lighthouse Shore Station - The Lighthouse Cottages Hynish Trust £225,000 £300,000 Carbon Neutral Islands Capital Fund 4.11 In addition to the Islands Programme, the Scottish Government has also confirmed £1.4m of funding to support the Carbon Neutral Islands (CNI) programme. The CNI project is a Scottish Government commitment aimed at supporting six islands to become carbon neutral by 2040. Islay is the only island within Argyll and Bute that is part of the CNI programme. 4.12 Islay Energy Trust have worked with the CNI Steering Group to prepare a Climate Change Action Plan. In 2024/25, they received £246,444 to deliver solar and battery storage to solutions to seven community buildings on the island whilst Islay Development Initiative received £142,285 to support their forestry project. 4.13 In order to ensure compliance with the national subsidy control regimes and to make funding applications submitted through the Council open, fair and transparent we are moving toward utilising Aspiring Places to gather community projects. For the first time, Page 80
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the Council has put out a call for expressions of interest to be submitted through the Aspiring Places platform and eight projects were submitted within the deadline. 4.14 Proposals have been reviewed by the CNI Steering Group on Islay and their proposed projects have been taken into consideration in identifying the projects listed below.. The timescale for application, decision and expenditure mirror those of the Islands Programme with a focus that outputs and outcomes should also contribute to the local Climate Change Action Plan. For the CNI Capital Fund there is a minimum project value of £75,000. 4.15 Work is ongoing by the CNI Steering Group to assess the viability of the proposed projects and we will seek feedback from SFT, if possible. This may lead to some of the following projects not progressing to application stage however at the time of writing; it is recommended that the following projects be submitted as bids. Should this change prior to committee a verbal update will be provided. Due to the timescales for submission of applications, work will commence in preparing these applications for submission before the deadline. Project Name - description Project Lead CNI funding request Castlehill Solar Array Expansion IET £200,000 Additional Measures - Community Buildings Phase 2 IET £310,000 Ionad Chaluim Chille Ìle Wind Turbine Initiative IET £200,000 Islay EV Capacity Initiative IET 300,000 Regeneration Capital Grant Fund 4.16 The Regeneration Capital Grant Fund (RCGF) is seeking expressions of interest for projects to be delivered in the 2026/27 financial year. RCGF supports place-based approaches to delivering regeneration and inclusive growth projects. The funding should help to address persistent vacant and derelict land as well as supporting locally developed, transformational place-based regeneration projects that involve local communities, help tackle inequalities and improve the economic, social, and physical environment of deprived, disadvantaged and fragile remote communities across Scotland. There is a focus on larger scale transformational projects that have strong regeneration outcomes including supporting and creating jobs, business space and bringing derelict land back into use. 4.17 Argyll and Bute Council has previously been successful in securing substantial funding through RCGF including the 2025/26 allocations for Fyne Futures Local Food Production and Training Centre and the Isle of Luing Community Slate Quarry projects. 4.18 The RCGF will follow a two stage application process with the following timescales: • Stage 1 Expressions of Interest - 27 June 2025 • Investment panel recommendations and applicants notified - August 2025 • Stage 2 application deadline - November 2025 Page 81
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• Investment panel recommendations agreed - December 2025 • Projects for 2026-27 funding announced - early 2026 • Grant drawdown/project delivery - by end March 2027 4.19 As with the CNI funding, the Council have put out a call for community projects to be logged on the Aspiring Places platform. In order to allow a period of time for these significant projects to come forward the deadline for the submission of expressions of interest on Aspiring Places was set as 2 June 2025 and 33 projects were submitted for consideration. 4.20 Following this deadline, two officers reviewed the projects to identify those that fit most closely with the aims and objectives of the fund, which is to support largescale transformational projects that have strong regeneration outcomes as well as addressing market failure. A number of the projects put forward through Aspiring Places were assessed as not meeting the majority of these aims however officers recognise the benefits that these projects could bring. Where possible officers have signposted organisations to other funding sources, which may help them to progress their proposals. 4.21 We have also reviewed the emerging Pipeline of Projects to determine whether there are any Council led projects that might be eligible for RCGF funding. There was just one project with a funding gap that was eligible for this funding and could deliver within the timescale required. 4.22 Officers will now contact the potential projects to confirm the details on Aspiring Places and undertake other checks. Whilst further work is required to confirm the details of the projects, at the time of writing, it is recommended that the following projects be submitted as Expression of Interest bids for RCGF in 2026/27. Should this change prior to committee a verbal update will be provided. Due to the timescales for submission of applications, work will commence in preparing these applications prior to committee due to the imminent deadline for submission. Project Name - description Project Lead RCGF request Total project value Council Led Projects Kintyre Sea Sport Rural Growth Deal Project RGD Team £800,000 £3,100,000 Aspiring Places Projects Sonas Childcare South Islay Development £900,000 £1,085,100 Tarbert Harbour Watercraft Launch & Recovery Slipway and Community Activity Hub Tarbert (Loch Fyne) Harbour Authority £850,000 £1,400,000 Lighting Up the Shore Station - a sustainable hub for Tiree Hynish Trust £850,000 £850,000 Nonhebel Park (Final Phase) Mull and Iona Community Trust £400,000 £600,000 Page 82
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Tighnabruaich Community Refueling and Community Hub Tighnabruaich District Development Trust £120,000 £200,000 4.23 Members are asked to note that these are all competitive funds and based on previous years it is considered likely that budgets will be oversubscribed. As such, it is important that projects are sufficiently developed to enable the best chance of success and to ensure that if successful the funding can be fully drawn down for the benefit local communities. 4.24 Once applications are submitted, the Transformation Projects and Regeneration Team will continue to liaise with SFT and the Scottish Government. Where projects are being delivered by other teams within the Council or third parties, the Team will work with the identified project lead for successful projects to ensure that we fulfil the grant conditions including monitoring and reporting requirements. Project Officers within lead organisations will be responsible for managing the delivery of successful projects and ensuring all funding is drawn down in line with the criteria for the programme. 5.0 CONCLUSION 5.1 The Islands Programme, Carbon Neutral Islands Capital Fund and Regeneration Capital Grant Fund offer can support island and community based infrastructure projects, which can help to sustain and enhance our area. Priority projects have been identified based on strategic fit with funding criteria and deliverability within challenging timescales. 5.2 The Transformational Projects and Regeneration Team have a strong track record of securing and overseeing the delivery of grant funded projects working in partnership with other Council teams and external stakeholders. 6.0 IMPLICATIONS 6.1 Policy - all applications are required to support relevant Scottish Government policy such as the National Islands Plan. The strongest applications will also support local policy. 6.2 Financial - if successful, the projects will secure funding from the Scottish Government however, some projects may also require match funding, where this is the case and it impacts on the Council this will be sought through other Council/HSCP approval processes. 6.3 Legal – the support of legal services will be required in relation to the grant contract, creation of standard securities and other legal requirements associated with the funding. Page 83
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6.4 HR – as an applicant for the grant there is an expectation that the Council meets the Fair Work First requirements of the Scottish Government. As the council currently do not meet all requirements, an application for exemption has previously been granted. Staff time will be required to prepare the applications, monitor and report on the applications and deliver the projects. 6.5 Customer Service – no implications anticipated. 6.6 Risk – each project will have its own risks, which will be managed by the team identified as the project lead. At this stage, there is a risk that the funding applications will not be successful and significant staff resource is required in developing and submitting applications. Given the time timescale for expenditure, there is a risk that delays in project delivery could reduce the funding received. 6.7 Climate Change - The projects will have varying impacts on climate change but all projects will look to minimise any negative impacts where possible. All projects put forward for CNI Capital Finding are focused on supporting the delivery of the Islay Climate Change Action Plan and making a positive contribution toward the move to net zero. 6.8 Fairer Scotland Duty - as an applicant for the grant there is an expectation that the Council meets the Fair Work First requirements of the Scottish Government. As the council currently do not meet all requirements an exemption has been granted by the Scottish Government. 6.9 Equalities - protected characteristics – no implications anticipated. 6.10 Consumer Duty – no implications anticipated. 6.11 Island Communities – for two of the funds projects are required to be based on an inhabited island to be able to bid for funding, the limited amount of funding available and the nature of the fund means that it isn’t possible for all island communities to benefit from this round of funding. All projects will seek to improve their local communities. 6.12 Children’s Rights and Wellbeing – no implications anticipated. Kirsty Flanagan, Executive Director with responsibility for Development and Economic Growth Councillor Jim Lynch Policy Lead for Economic Development, Housing, Communities and Islands 4 June 2025 For further information contact: Fergus Murray, Head of Development and Economic Growth Fergus.murray@argyll-bute.gov.uk Page 84
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Jonathan Welch, Transformational Projects and Regeneration Manager Jonathan.welch@argyll-bute.gov.uk Anna Watkiss, Senior Development Officer Anna.Watkiss@argyll-bute.gov.uk Page 85
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ARGYLL AND BUTE COUNCIL ENVIRONMENT, DEVELOPMENT AND INFRASTRUCTURE COMMITTEE DEVELOPMENT & ECONOMIC GROWTH 19 JUNE 2025 ARGYLL AND BUTE LOCAL TRANSPORT STRATEGY ISSUES REPORT 1.0 INTRODUCTION 1.1 Improving our Transport connectivity remains a top priority of both the council and the Community Planning Partnership (CPP) informed by repeated public consultations with local communities including the development of the Argyll and Bute Rural Growth Deal, the Economic Strategy and development of the CPP LOIP. Scotland has a National Transport Strategy (NTS2) and there are also two regional Transport Strategies covering Argyll and Bute. This report however presents to members key Argyll and Bute transport issues that will inform the rationale, content, and future implementation of an Argyll and Bute Local Transport Strategy within the context of the resources available to us as a rural Local Authority together with National and Regional Transport priorities as set out in National and Regional Transport policy. 2.0 RECOMMENDATIONS 2.1 It is recommended that members of the Environment, Development and Infrastructure Committee:- a. Consider and approve the list of Argyll and Bute key transport issues and associated survey questions, including priority transport projects, collaboration and partnership working opportunities (paras. 3.9 to 3.21) contained within this report for a six-week period of public consultation to help inform a future Argyll and Bute Local Transport Strategy (LTS). b. Note that officers will arrange an Elected Members seminar to take place at the conclusion of the consultation. c. Note that a further report will be presented at a future committee meeting once officers have analysed the consultation responses. 3.0 DETAIL 3.1 National Transport Policy Context Page 87 Agenda Item 8
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3.2 Scotland’s transport strategies aim to create a sustainable, efficient, and accessible transport system that supports economic growth, helps address inequalities including a just transition to net zero, and improves connectivity across urban and rural areas. The National Transport Strategy (NTS2) sets out a long-term vision focusing on four key priorities: reducing inequalities, taking climate action, helping deliver inclusive economic growth, and improving health and wellbeing. This strategy promotes investment in public transport, active travel (walking and cycling), and low-emission vehicles while addressing challenges such as congestion and accessibility in remote regions. Major infrastructure projects, such as road and rail upgrades, support these goals by improving connectivity between Scotland’s cities and rural communities. 3.3 The contents of NTS2 were and continue to be informed by STPR2 (Scottish Transport Projects Review), a strategic transport review conducted by Transport Scotland to assess and prioritise infrastructure projects that align with Scotland’s long-term objectives. Key Transport Issues Facing Argyll and Bute 3.4 Transport Scotland, the national agency responsible for transport, plays a central role in delivering these strategies by managing major road and rail projects, overseeing public transport services, and working towards a greener transport network. It collaborates with regional transport bodies including HITRANs and Strathclyde Partnership for Transport (SPT) that cover Argyll and Bute, which develop and implement local transport plans tailored to the needs of their respective regions. These regional bodies coordinate local bus services, cycling infrastructure, and transport accessibility initiatives while working with local authorities and other stakeholders. By aligning national and regional strategies, Scotland aims to create a well-integrated transport network that supports sustainable mobility and inclusive economic growth. 3.5 Given this national context why is there a need for a Local Transport Strategy (LTS)? 3.6 Argyll and Bute Council has an extensive transport network connecting our communities over a wide geographical area. Our population is highly dispersed across a wide geographical area and our rural economy offers only a few areas where economies of scale in terms of people movement can be realised. The council contributes significant funds each year both in terms of capital and revenue to keep our transport network and services operational. That said, it is becoming increasingly difficult to enhance and even maintain our transport network to the standards that local people require. A cohesive Local Transport Strategy, for Argyll and Bute is vital for several reasons: • Efficiency: It ensures that different modes of transport (public transit, cycling, walking, etc.) work together seamlessly, reducing travel times and improving connectivity between, and within, our communities. Page 88
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• Sustainability: By promoting public transport and non-motorised options, it helps reduce traffic congestion and lower greenhouse gas emissions, contributing to environmental sustainability. • Economic Development: A well-planned transport system can boost local economies by improving access to jobs, vital services, and amenities, making areas more attractive to businesses, visitors, and residents. • Social Equity: A cohesive strategy addresses the needs of all community members, ensuring that transport options are accessible to everyone, including vulnerable members of our community. • Public Health: By encouraging active transport modes like walking and cycling, it can improve public health outcomes through increased physical activity and reduced air pollution. • Safety: A coordinated approach can enhance safety measures, increasing resilience to climate change/severe weather events, reducing accidents and improving overall community well-being. 3.7 Having a LTS will also help the council communicate its transport priorities to both Governments and relevant key agencies. The scale of investment and change required is beyond the resources of the council which makes increased collaboration and partnership working critically important. 3.8 Members are asked to consider the key transport issues and survey questions for Argyll and Bute listed below. These issues have been informed through previous public consultations and work done in connection with national and regional transport strategies. It is intended that these key issues be subject to a public consultation over a six-week period that will help inform a draft Argyll and Bute Transport Strategy to be considered at a future EDI Committee. 3.9 Climate Change Impacts on our essential transport infrastructure Climate change impacts are increasing resulting in damage to our local transport network and restricting operations • Do you believe that climate change is impacting on our essential transport infrastructure? If so, what do you consider are the main impacts? • What could be the most cost-effective way to minimise these impacts on our transport network? 3.10 Supporting Economic Growth Our local economy relies on our transport network for the movement of goods and people across our area and connecting with national and global markets. • How can improving our transport infrastructure and connectivity boost our economic resilience and growth? 3.11 Journey to Net Zero Page 89
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The UK is on a journey to delivering net zero through national and regional strategies and transport is a major contributor of carbon in our area. • How can we best decarbonise our public transport in the context of Argyll and Bute? • What would be the best way to reduce our reliance on private transport to travel within and between our local communities? 3.12 Reducing the Need to Travel Travel is expensive in terms of time and cost particularly for people living in areas where transport choice is limited and long distances from main service centres. • How can we best reduce the need to travel in Argyll and Bute? 3.13 Improving Places through Increased Transport Choice There is increased emphasis in creating better places for people to live, work and take advantage of leisure opportunities. • How can we best increase transport choice in Argyll and Bute? Priority Transport Projects 3.14 Trunk and Local Roads The vast majority of roads across Argyll and Bute are maintained by the Council with the Scottish Government responsible for the maintenance of our Trunk Road network (A85, A82 and A83). Our road networks are essential for our way of life and the future of our economy. It is a huge challenge to ensure that these roads are kept fit for purpose and adequately maintained particularly with the resources we have available to us. How can our Trunk Road network be improved to ensure connectivity internally and externally? • How can we better maintain our local road network? • What are the key local priorities for action on our Trunk and Local Road network? 3.15 Rail Argyll and Bute has a limited rail network. That said, it still plays an important role in connecting our communities across Argyll and Bute and to the Central Belt of Scotland. • What would your priority be in improving the Argyll and Bute rail network? 3.16 Public Transport - Buses Page 90
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The council subsidies 96% of all local bus services operating across Argyll and Bute at a considerable cost and at a time when passenger numbers are falling. • What can we do to make local bus services more efficient and responsive to local people’s needs? 3.17 Ferries and Ports Our ferries and ports are vitally important for our island and peninsula communities. Our ageing ferry fleet has had major reliability issues and many of our ports require substantial investment to ensure they can accommodate new ferries that have been commissioned by the Scottish Government. • What are your priorities in improving our local port infrastructure? • What are your priorities for future ferry investment? 3.18 Air Transport Air transport connects several of our remoter communities directly to the central belt in the case of Campbeltown, Islay and Tiree and to Oban for Coll and Colonsay. • What are your priorities for the future delivery of air transport across argyll and Bute? 3.19 New Technology New technology is rapidly advancing including in the area of transport with new ways to travel and new fuels being considered. • Where do you see are the main areas of new technology that could help transform transport networks across argyll and Bute? Resourcing and Partnership Working Opportunities 3.20 Funding Opportunities Argyll and Bute has an extensive transport network that is increasingly vulnerable to climate change impacts and in certain locations increased usage for freight or the movement of people. Local resources are currently insufficient to address community concerns over the condition and/or suitability of this network. Consequently, there is a need to look outwith our area to secure the funding we need. • How can we best attract external funding into our transport network? 3.21 Collaborative Working Page 91
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Our local transport network is managed and operated by different partners including from the public, private and third sectors. • Who should the council look to collaborate with to help secure additional funding for our transport network? 4.0 NEXT STEPS 4.1 Addressing Argyll and Bute’s transport challenges at a time of significant change and innovation requires a strategic approach, targeted investment and prioritisation, together with strong collaboration and partnership working. Repeated consultations with our communities have highlighted transport connectivity as a top priority issue. Members are asked to consider the Argyll and Bute transport issues contained in this report that will then be consulted on to inform a new Local Transport Strategy for Argyll and Bute recognising that the council has limited resources and will need to involve a range of partners to deliver changes to our transport network at a local level. 4.2 The consultation will be open to all transport partners together with the public over a six-week period and will be undertaken digitally. Following an analysis and careful consideration of comments received a draft LTS will be prepared for EDI and Council consideration and approval. 5.0 CONCLUSION 5.1 Improving our transport connectivity as a place is a top priority of our communities evidenced by several recent public consultations including most recently by the Community Planning Partnership (CPP). Scotland has a National Transport Strategy (NTS) in place, informed by regular strategic transport reviews, together with two regional Transport strategies (HITRANS and SPT) that cover different parts of Argyll and Bute. These national and regional strategies have established the strategic context that our LTS strategy needs to take account of, but they do not fully address or identify our local transport issues. Having a LTS in place will enable the council to clearly communicate our key transport issues and priorities for future investment to our communities, including potential investors, transport users, together with our strategic partners including Transport Scotland and the Scottish and UK Governments. 6.0 IMPLICATIONS 6.1 Policy - Development of a Local Transport Strategy supports delivery of Outcome 1: Transport Infrastructure, contained within the Argyll and Bute Community Planning Partnership Improvement Plan 2024-34. The project also supports achievement of the Scottish Government’s National Transport Strategy. 6.2 Financial - The development of a Local Transport Strategy will require Argyll and Bute Council to pursue and lobby funding from external funding sources. It should Page 92
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be noted that Argyll and Bute already financially subsidises transport services across Argyll. 6.3 Legal – None. 6.4 HR – None. 6.5 Customer Service – None. 6.6 Risk - There is a reputational risk to the Council if continued improvements to opportunities in economic important transport assets are not delivered. 6.7 Climate Change - The Local Transport Strategy and sister Active Travel Strategy will provide the context for development of new opportunities for residents and visitors to consider an alternative to having to use a private car to travel which will help lower Argyll and Bute’s carbon footprint. 6.8 Fairer Scotland Duty – None. 6.9 Equalities - protected characteristics - The final Local Transport Strategy will be accompanied by a Socio and Economic Impact Assessment and Island Communities Impact Assessment. 6.10 Consumer Duty - Creation of a Local Transport Strategy will support development of projects to enable our residents and visitors to travel more sustainably and actively which will help reduce transport and fuel poverty and improve access to essential services. 6.11 Island Communities - The Local Transport Strategy will include all islands within Argyll and Bute on an equal basis as the mainland. 6.12 Children’s Rights and Wellbeing - Engagement feedback demonstrates stronger support for the delivery walking and cycling infrastructure from younger members of the community than the average level of community support. Executive Director with the responsibility for Development and Economic Growth: Kirsty Flanagan Policy Lead for Roads, Transport and Amenity: Councillor John Armour For further information contact: Fergus Murray, Head of Development and Economic Growth fergus.murray@argyll-bute.gov.uk Moya Ingram, Strategic Transportation Manager. moya.ingram@argyll-bute.gov.uk Page 93
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ARGYLL AND BUTE COUNCIL ENVIRONMENT, DEVELOPMENTAND INFRASTRUCTURE COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 19 JUNE 2025 REMEMBERING TOGETHER – CO-CREATING COVID COMMUNITY MEMORIALS - COMPLETE 1.0 INTRODUCTION 1.1 The purpose of this report is to provide a final project report to the Environment, Development and Infrastructure Committee on the Remembering Together Programme manged by Greenspace Scotland and delivered by CHARTS through a partnership with Argyll and Bute Council and Greenspace Scotland. 2.0 RECOMMENDATIONS 2.1 It is recommended that the Environment, Development and Infrastructure Committee consider the successful delivery of the Remembering Together Programme. 3.0 DETAIL 3.1 In 2021 Scottish Government announced funding for a programme of co- created community memorial projects in every local authority in the country. Greenspace Scotland was appointed to manage this programme which was called Remembering Together. 3.2 Remembering Together, brought together communities and artists/creative practitioners in collective acts of reflection, remembrance, hope and healing. Supported with £4.1 million provided by the Scottish Government, memorial projects were co-created in every local authority area of Scotland through communities working with artists/creative practitioners to honour those that have lost their lives to Covid-19 and reflect on their own experiences. 3.3 On 14th March 2022, the Strategic Management Team approved the governance for delivery in Argyll and Bute to be a partnership approach with officer Page 95 Agenda Item 9
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representation on a steering group with CHARTS and Greenspace Scotland. CHARTS had a leading role in delivering the project. 3.4 The project was undertaken in two phases. A first phase consultation identified the importance of the outdoors and natural environment in supporting the mental health of our communities during the pandemic, and also in the creation of artworks/events which could be shared across Argyll and Bute’s wide geography, rather than being situated in any single location. The project was given the name Reflect and utilised grassroot connections to enable co-created art works to be situated in community/heritage gardens/ trails across the four community planning areas of Argyll. 3.5 The second delivery phase consisted of four artists working with communities in the four chosen locations, Garelochead, Isle of Mull, Isle of Bute and Campbeltown to design new spaces and artworks for memory and reflection. This built on post-pandemic community wellbeing activities and grew community relationships with artists. The project has left a legacy within the community for continued engagement with nature, flora and fauna and an archived resource for future learning. 3.6 Phase two delivered the following: • Shelter, Garelochhead, led by Emma Henderson at Centre 81 • THIS IS ENOUGH / GÀRRADH GU LEÒR, Isle of Mull, Aros Park Historic Walled Garden, by Somewhere/Nina Pope and Karen Guthrie • Silver Linings, Isle of Bute, Luke Winter • Looking for light in the darkness, Campbeltown Museum, Linda McCartney Memorial Garden, led by Kirsten Millar and Muriel MacKaveney 3.7 The project culminated in a digital event which brought the participants together and in addition a video of the projects was produced Remembering Together | Argyll and Bute | CHARTS. Argyll and the Isles. 3.8 Key results from Reflect include: ● Remembering Together web page views = 1901. ● 28 Reflect focused community engagement workshops hosted throughout Argyll in addition to those hosted more regularly as part of ongoing community partnerships e.g. Campbeltown and Garelochhead general activities to which artists attended building relationships. ● 4 in-person community commemorations and 1 online community commemoration - Our Community Reflects, August 17th 2024. ● 446 Direct beneficiaries in stage two of Reflect, Remembering Together (December 2023 to August 2024). ● Estimated 1200+ people directly engaged through workshops and events. ● Highest reaching CHARTS social post 2.3K Page 96
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3.9 A number of project elements remain to be delivered due to external demands and legacy is strong. Details of works outstanding and legacy are detailed below and continue to be monitored: Project Location Status/Legacy Garelochead Emma is continuing to work with Centre 81, and contacts that have been made through the project. CHARTS will continue to support. Mull – Aros Garden Core Aros Walled garden group is continuing to meet and there is a posy project proposed for Mull’s Spring Flower Show. Nina Pope is leading development including to take part in Steering group engagement project Beacons January 2025. Members of the group have also now joined Aros Development Trust – to help secure ongoing development potential. CHARTS will support continuation and commissions where funds permitting to this group as part of its island’s development programme. Bute Sculpture work /‘Shine’ is being displayed at sites around Bute and is currently on display at Bute Community Forest and at Ettrick Bay with the support of Mount Stuart to date (Sep 24 an estimated 200 visitors have viewed this work at Bute Forest). The artist continues to contact other organisations with CHARTS comms support to extend tour 2024-2025. Campbeltown Heritage Heroes Awards were achieved by: 62 school pupils, 7 Kintyre Care Home residents and 3 Woodland Residential residents. The art work will be permanently installed in spring 2025 once essential (pre-planned) ground maintenance work has been carried out by the Council in the Linda McCartney Garden. 4.0 IMPLICATIONS 4.1 Policy – None. 4.2 Financial – None. Page 97
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4.3 Legal – None. 4.4 HR – None. 4.5 Customer Service – None. 4.6 Risk – None. 4.7 Climate Change – Taken into consideration as part of the project. 4.8 Fairer Scotland Duty – None. 4.9 Equalities - protected characteristics – None. 4.10 Consumer Duty – None. 4.11 Island Communities – Two islands included, Bute and Mull. 4.12 Children’s Rights and Wellbeing – None. Kirsty Flanagan, Executive Director with overall responsibility for Development and Economic Growth Councillor Math Campbell-Sturgess, Policy Lead for Business Development May 2025 For further information contact: Fergus Murray, Head of Development and Economic Growth fergus.murray@argyll-bute.gov.uk Arlene Cullum, Senior Economic Development Officer Arlene.cullum@argyll-bute.gov.uk APPENDICES: Appendix 1 – Reflects Photos Page 98
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Appendix 1 – Reflects Photos GARELOCHEAD Page 99
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Appendix 1 – Reflects Photos ISLE OF BUTE Page 100
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Appendix 1 – Reflects Photos ISLE OF BUTE Page 101
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Appendix 1 – Reflects Photos ISLE OF MULL Page 102
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Appendix 1 – Reflects Photos CAMPBELTOWN Page 103
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ARGYLL AND BUTE COUNCIL ENVIRONMENT, DEVELOPMENT AND INFRASTRUCTURE COMMITTEE ROADS AND INFRASTRUCTURE 19 JUNE 2025 SERVICES TEMPORARY TRAFFIC REGULATION ORDERS CHARGING AND ADVERTISING 1.0 EXECUTIVE SUMMARY 1.1 In recent years, several organisations have raised concerns regarding the requirement to pay for Temporary Traffic Regulation Orders (TTROs), particularly for events, and have questioned how these orders are advertised. 1.2 Following these enquiries, officers committed to bringing a report to the June meeting of the Environment, Development and Infrastructure (EDI) Committee. This report would include recommendations relating to event charging and advertising. This report provides an update on that commitment and seeks Members' agreement to undertake a wider review. The aim of this review is to ensure a consistent approach is applied to all applications and events. RECOMMENDATIONS It is recommended that the Environment, Development and Infrastructure Committee:- • Agrees that officers carry out a review of the event application costs associated with TTRO charges and advertising; • Agree that a report outlining the scope and methodology of that review, including engagement with event organisers, will be reported to the next Environment, Development and Infrastructure Committee; and • Agree that the current Fees and Charges in relation to TTROs for events are suspended and the loss of income estimated to be up to £45,000 in 2025/26 is funded from the Priorities Investment Fund. Page 105 Agenda Item 10
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ARGYLL AND BUTE COUNCIL ENVIRONMENT, DEVELOPMENT AND INFRASTRUCTURE COMMITTEE ROADS AND INFRASTRUCTURE 19 JUNE 2025 SERVICES TEMPORARY TRAFFIC REGULATION ORDERS CHARGING AND ADVERTISING 2.0 INTRODUCTION 2.1 The Road Traffic Regulation Act 1984 and The Road Traffic (Temporary Restrictions) Procedure Regulations 1992 provide powers to the Council, as a Traffic Authority, to place restrictions on roads under their control. 2.2 As far as practicable, the Service seeks to recover reasonable costs for the provision of road restrictions or closures. Advertising in a local newspaper incurs a cost to the Council on top of this. 2.3 In recent years, several organisations and event organisers have raised concerns about the requirement to pay for the temporary orders and queried how these are advertised. This resulted in an agreement to provide a report to the June Environment, Development and Infrastructure Committee. 2.4 Whilst gathering information for this report it was noted that there appears to be inconsistencies across the area in relation to charges with some events not going through the application process and therefore potentially not following our fees and charges policy. 2.5 This report seeks agreement to carry out a wider review of the events application process including fees and charges. The detail of how that review will be carried out and engagement with event organisers will be reported to the next Environment, Development and Infrastructure Committee. 3.0 RECOMMENDATION 3.1 It is recommended that the Environment, Development and Infrastructure Committee: • Agrees that officers carry out a review of the event application costs associated with TTRO charges and advertising; • Agree that a report outlining the scope and methodology of that review, including engagement with event organisers, will be reported to the next Environment, Development and Infrastructure Committee; and • Agree that the current Fees and Charges in relation to TTROs for events are suspended and the loss of income estimated to be up to £45,000 in Page 106
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2025/26 is funded from the Priorities Investment Fund. 4.0 DETAIL 4.1 Argyll and Bute Council receive a large number of applications for various events across our Council area from Running events to Christmas lights being switched on. 4.2 Several organisers have asked that the fees be waived for charities and often provide evidence of this as Registered Charity Number. Members should note that this could include organisations from youth groups to football clubs to racing clubs and not necessarily charities like Cancer Research or the British Heart Foundation, for example. The impact of exempting any group that is registered as a charity could result in no fees being collected for events. This will impact a revenue stream which supports two full time equivalent (F.T.E.) members of staff (alongside the s14 charges) and could impose a burden on already constrained budget. 4.3 Recently we reviewed our event applications which are now online and the view of officers is that a wider review is required including engagement with event organisers. 4.4 The Council at its budget meeting on 27 February, agreed the fees and charges for 2025/26 which included an amendment to the fees being charged for Temporary Traffic Regulation Orders where event organisers are now responsible for paying officers costs as well as the advertising fees associated with a road restriction or closure. 4.5 Officers have further noted that some events are not following the application process and as a result roads are being closed potentially in contravention of the relevant Road Traffic Regulations. 4.6 Whilst there was a commitment by officers to provide a report to the June Environment, Development and Infrastructure Committee with recommendations around event charging and advertising, officers suggest that further investigation is required to allow a better understanding of the local inconsistencies around events. With this in mind, officers recommend a full review is carried out of our events charging and applications in relation to TTROs which would be brought to a future Environment, Development and Infrastructure Committee. 4.7 To support this, it is further recommended that Members agree to suspend the current Fees and Charges in relation to events requiring a TTRO. It is expected that this could cost up to £45,000 in 2025/26 and Members are asked to agree to fund this pressure from the Priorities Investment Fund. 5.0 CONCLUSION 5.1 This report seeks Members' agreement to undertake a comprehensive review of the event application costs associated with TTRO charges and advertising. A report outlining the scope and methodology of this review will be presented at the Page 107
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next meeting of this Committee. In the interim, Members are also being asked to agree to suspend the current fees and charges for TTROs related to event advertising until the review is completed. The anticipated cost of this suspension could be up to £45,000 in 2025/26. 6.0 IMPLICATIONS 6.1 Policy – legislative not policy. 6.2 Financial – the suspension of charges will lead to a loss of income. It is expected that this would be up to £45,000 in 2025/26 and it is recommended that Council agree to fund this loss from the Priorities Investment fund. 6.3 Legal – potential challenge if community newspapers are used instead of reconsider local newspapers, the likelihood of challenge is unknown. 6.4 HR – none. 6.5 Customer Service – clarity in what charges apply will allow event organisers to plan accordingly. 6.6 Risk – potential legal challenge if deemed to have incorrectly advertised notices. 6.7 Climate Change – none known 6.8 Fairer Scotland Duty: none known. 6.9 Equalities - protected characteristics – none known. 6.10 Consumer Duty – none known. 6.11 Islands – none known. 6.12 Children’s rights and wellbeing – none known. Executive Director with responsibility for Roads and Infrastructure: Kirsty Flanagan Policy Lead for Roads and Transportation: Councillor John Armour June 2025 For further information contact: Stephen Hall, Interim Head of Roads and Infrastructure Service stephen.hall@argyll-bute.gov.uk Hugh O’Neill, Network and Standards Manager hugh.oneill@argyll-bute.gov.uk Page 108
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ARGYLL AND BUTE COUNCIL ENVIRONMENT, DEVELOPMENT AND INFRASTRUCTURE COMMITTEE ROADS AND INFRASTRUCTURE 19 JUNE 2025 REVIEW OF ROADS AND INFRASTRUCTURE SERVICES - UPDATE 1.0 EXECUTIVE SUMMARY 1.1 The purpose of this report is to provide Members of the Environment, Development and Infrastructure Committee with an update on progress and next steps in relation to the Roads and Infrastructure Service Review (RIS Review). 1.2 In providing this update reference is made to information contained in previous reports to this Committee in relation to the RIS Review dated 20 March 2025 and to the actions taken in the intervening period. 1.3 It is recommended that Members of the Environment, Development and Infrastructure Committee:- a) note the content of this report; b) consider the progress made in relation to the Priority Improvement Actions as set out within Appendix 1 to this report; and c) note that officers will bring a progress report to the September 2025 meeting of this Committee, which will identify, where possible, how savings will be delivered in 2025/26 and 2026/27. Page 109 Agenda Item 11
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ARGYLL AND BUTE COUNCIL ENVIRONMENT, DEVELOPMENT AND INFRASTRUCTURE COMMITTEE ROADS AND INFRASTRUCTURE 19 JUNE 2025 REVIEW OF ROADS AND INFRASTRUCTURE SERVICES - UPDATE 2.0 INTRODUCTION 2.1 This report provides an update to Members of this Committee on progress of the Roads and Infrastructure Service Review (RIS Review), since the last update of 20 March 2025. 3.0 RECOMMENDATIONS 3.1 It is recommended that Members of the Environment, Development and Infrastructure Committee:- a) note the content of this report; b) consider the progress made in relation to the priority improvement actions as set out within Appendix 1 to this report; and c) note that officers will bring a progress report to the September 2025 meeting of this Committee, which will identify, where possible, how savings will be delivered in 2025/26 and 2026/27. 4.0 DETAIL 4.1 The RIS Review has been structured around 4 stages of activity as illustrated below: Page 110
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4.2 At the March 2025 meeting of this Committee, Members received a report entitled “Review of Roads and Infrastructure Services – Update”. That report provided detail on the completion of Stage 2 of the RIS Review and outlined the “twin track” approach being adopted in respect of Stages 3 and 4. 4.3 Stage 3 of the RIS Review, as outlined above, is a revised target operating model for the service, which has been designed in the form of a new organisational structure for the service. Since the last update, formal engagement with Trade Unions and the affected staff has taken place in relation to stage 1 of the reshape, and as a result of detailed and considered feedback from Third Tier Managers, we are now taking the opportunity to review the proposals in light of this feedback. 4.4 Stage 4 of the RIS Review process was the development and implementation of 12 Priority Improvement Actions, one of which was the organisational reshape. A summary of the 12 Priority Improvement Actions together with progress to date can be found in Appendix 1 to this report. In order to ensure the change process is well managed and does not place an unsustainable burden upon an already busy service the Priority Improvement Actions are being staggered and there are a number of these where work has not yet been commenced, where this is the case, an indicative timeframe has been included to give assurance that work will progress in a planned manor. 4.5 In respect of savings, Members will be aware that those outlined as part of the 2024/25 financial (£200k) year have not been realized due to the ongoing work that was required in relation to development and implementation of stages 3 and 4 of the review. The level of savings required for the 2025/26 (£300k) and 2026/27 (£500k) financial years adds up to a total saving of £1m over 3 years. This is in addition to saving reference RIS 002 agreed in February 2025 in relation to commercial waste for self catering units. We intend to provide an estimate of how these savings will be delivered in the next RIS Review update report. Page 111
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4.6 The Consultant who was hired to lead the RIS Review has also had to take on the operational leadership of the service following the departure of the former Head of Road and Infrastructure Services. He has been overseeing both the progression of the review and the operational demands of the Road and Infrastructure Service concurrently. Elected Members will appreciate that handling both of these significant areas of responsibility over the same period of time will inevitably impact on the overall advancement of the RIS Review. Progress has however been made on the Review, as set out in this report. The new Head of Road and Infrastructure takes up post in August and will assume responsibility for the operational aspect of the service, allowing the Interim Head/consultant to focus entirely on the RIS Review. 5.0 CONCLUSION 5.1 This report provides an update on the implementation of the 12 Priority Improvement Actions as developed under Stage 4 of the RIS Review process and the position and future reporting intentions in respect of anticipated savings as a direct result of the RIS Review process. 6.0 IMPLICATIONS 6.1 Policy – No direct policy implications within this report. A number of the priority improvement actions may result in changes to existing policies, where this is the case further reports seeking approval for new or changed policies will come to Committee. 6.2 Financial – A number of the priority improvement actions aim to increase efficiency and deliver financial benefits to the Council, these efficiencies and financial benefits will be reported on in more detail to the next meeting of this Committee. 6.3 Legal – Legal aspects are being reviewed as part of each of the priority improvement actions. 6.4 HR – The proposals to reshape the organisation structure of the Roads and Infrastructure Service have implications for staff. All relevant Council policies and procedures are being followed in this regard. 6.5 Customer Service – A number of the priority improvement actions aim to improve customer experience. 6.6 Risk – Risks are being managed in relation to each of the priority improvement actions. 6.7 Climate Change – None identified at this time. 6.8 Fairer Scotland Duty – None identified at this time. Page 112
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6.9 Equalities – protected characteristics - Will be considered as part of each of the priority improvement actions as these progress. 6.10 Consumer Duty – Will be considered as part of each of the priority improvement actions as these progress. 6.11 Island Communities – None identified at this time. 6.12 Children’s Rights and Wellbeing – None arising directly from this report. Kirsty Flanagan, Executive Director with responsibility for Roads and Infrastructure Councillor John Armour, Policy Lead for Roads, Transport and Amenity Services June 2025 For further information contact: Stephen Hall, Interim Head of Roads and Infrastructure Service Stephen.hall@argyll-bute.gov.uk APPENDICES Appendix 1 – Summary of Priority Improvement Actions Page 113
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Classification: OFFICIAL# Priority Improvement Action Rationale and Detail Progress Current Position Organisational Reshape: Develop and implement a revised organisation structure for RIS. This action will deliver Stage 3 of the RIS Review process and is fundamental to enabling the success of all other improvement related activities and will form the foundations for a refreshed Roads and Infrastructure Service. The existing organisation structure does not provide optimal levels of clarity and accountability and in some areas appears to lack the capacity required to effectively respond to near term challenges. The need for change to the management structure is not universal with some teams requiring only limited change. In Progress This action is taking place in 2 phases. The first phase relates to the third-tier management structure. Formal engagement has taken place with Trade Unions and affected staff and following detailed and considered feedback from Third Tier Managers on the new structure, work is ongoing to review proposals in light of this feedback. Phase 2 relates to tier 4 and below. Further information will be provided in this regard once the review of proposals, as a result of the feedback from Third Tier Managers, has been concluded. Waste Post PPP Arrangements: Drive forward the selection and development, by the Council, of the organisational arrangements to come into place for waste disposal at the end of the current PPP contract. With the current PPP contract expiring in September 2026, a key area of focus is to increase the pace at which the organisational arrangements that will be required after the end of the contract are developed and put into operation. In the short-term additional capacity is being added to the Council’s existing waste team through external specialist consultancies. As the future arrangements become clearer the capacity of the Council’s waste team will be further reviewed. In Progress External consultants continue to progress Options Appraisal for future organisational arrangements. A number of existing commercial and contractual matters in relation to the PPP contract are being progressed along with matters that relate to the impact on Municipal Bio-degradable Waste to Landfill. Organisational Design and People Roads and Infrastructure Service Review - Priority Workstreams Appendix 1 Page 115
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Classification: OFFICIAL# Infrastructure Capital Programme Management: Improve consistency of approach to project management. While there is a strong emphasis on managing the design and construction phases of projects the process of business case development and assurance within RIS can be improved and strengthened and brought into better alignment with the Council wide approach of the Project Pipeline and adoption of best practice through the Treasury Green Book business case approach. In Progress Work is progressing well to align RIS projects with the Council’s Project Pipeline. The RIS Management Team are working with the Corporate Programme Co- ordinator to conclude this action. Respond to Reduced Roads Asset Maintenance Budget: Review the impact of the reduction in roads maintenance capital budget on the overall staffug structure - with particular emphasis on the impact o front-line operational staffing (due to existing approach to capital recharging of a proportion of operative staff time). This action was initially developed in response to the anticipated significant reduction in the level of capital funding for 2025/26. The decision at Council to award a capital budget of £10m for roads reconstruction in 2025/26 has reduced the urgency of this action. However with ongoing pressure to Council budgets and no guarantee that the current level of capital funding can be maintained in future years, it remains necessary for the service to review how a potential future reduction in the capital budget would impact on the current operating model and balance between activities delivered by in-house resource and those delivered by contractors. Timeframe to be aligned with timetable for wider Council Savings and Budgets options process An initial high-level review has been undertaken outlining the types of both capital and revenue works that would be prioritised under different funding scenarios – this work will be further progressed over the coming year. Page 116
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Classification: OFFICIAL# Helensburgh Waste Transfer Station (WTS) Project to be subject to project gateway review to re-baseline the benefits in the context of whether it can offer opportunities to increase efficiency in waste collection and resilience in waste disposal of sufficient magnitude to justify the required capital investment. The proposed Helensburgh WTS is no longer required to ensure the Council has a bio-ban compliant disposal solution in this area. The project does however offer benefits in terms of resilience of waste disposal by enabling the Council to bulk waste and therefore being at less risk if it has to take waste further than at present for disposal. Construction of the WTS may also enable revised and lower cost shift patterns to be adopted by the waste collection teams. However it is not clear that these efficiency and resilience gains are sufficient to justify £3.6m of capital investment. Complete Following agreement of the Environment, Development and Infrastruture Committee on 20th March 2025 that officers should not progress further with the development and delivery of the Helensburgh WTS and the subsequent agreement of the Policy & Resources Committee on 8th May 2025 that the remainder of the £3m of budget earmarked for this project could be retained for other funding related pressures within the Waste Service, this Priority Improvement Action has now been concluded. Page 117
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Priority Improvement Action Rationale and Detail Progress Current Position RIAMS Improvement: Establish cross service project team with involvement from corporate, digital and finance to fundamentally review WDM and Total systems to determine and drive forward a plan to either re- configure ir replace both (recognising existing Total product must be replaced due to product soon to become unsupported). Stage 1 and 2 of the review process identified that the core asset and information management system used by the service in relation to roads, amenities and environmental assets is not optimally configured and is not offering the maximum value possible. This system also interacts with a service specific finance system which is coming to its end of life and with the corporate customer relationship management system. This Priority Improvement Action will see these systems reviewed with targeted improvements made to maximise benefit and ensure a replacement for the finance element is in place prior to the expiry of the existing product. This work will include reviewing the opportunities for artificial intelligence to add greater value and enable staff to spend a greater proportion of their time on higher value-added activities. In Progress Work in respect of the 3 key areas of improvement (Finance module; Environmental Land Management (ELM) module and Customer Relationship Management (CRM) module) has been progressed with each project lead having completed a project brief for their element. As the current Finance module becomes unsupported in March 2026, priority has been given to this element of the system to ensure that a replacement is in place prior to this date. Roads and Infrastructure Service Review - Priority Workstreams Data, Digital and Customer Page 118
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Priority Improvement Action Rationale and Detail Progress Current Position Commence programme of strategic change to parking and enforcement related activity. A strategic review of parking services and options for change should be developed for consideration by Members as a co-ordinated package of service changes. TBC - Cannot be progressed until Reshape has been concluded This action cannot be progressed until the Organisational Reshape action has been concluded. Develop and implement a package of changes to school transport including ASN transport. This is a policy area that, nationally, has been under significant financial strain for a number of years as a result of increases in demand. A package of changes will be developed including: • Reviewing the approach to procurement in targeted areas. • Strengthening co-ordination between Council services in Education and RIS in relation to planning for the transport requirements of children and young people with ASN. In progress Work is taking place to progress quarterly meetings with colleagues in Education to better understand current and future ASN needs and to create a formalised process that allows for consideration of transport needs against ASN requirements. Continue to progress route optimisation project. This project is fundamental to having improved customer service and performance metrics to drive efficiency in the waste collection service. In progress Staff training and familiarisation with the technology has now been concluded and the installation of the in-cab technology is all but complete, with the only vehicle located out on Tiree remaining to be fitted. The first pilot area began trials in May 2025 with wider roll out expected to take place before the end of June 2025. This Priority Improvement Action is the subject of another report on today's agenda. Roads and Infrastructure Service Review - Priority Workstreams Policy and Procedure Page 119
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Continue to progress the second domestic waste bin review and seek to reduce residual waste collection in line with the volume recommended in the Code of Practice for Household Recycling in Scotland of 80L per week for households with kerbside access and 70L per week for flats with a communal service. To reduce waste disposal volumes and increase recycling and re-use, thereby supporting achievement of environmental strategies and targets and reducing revenue cost of waste disposal and waste collection services. This work, alongside the route optimisation project will be driven forward with increased pace to deliver improvements in both efficiency and customer service. In progress The consultation on the second green bin collections ended on 15 May 2025, responses are currently being reviewed and collated. This Priority Improvement Action is the subject of another report on today's agenda. Page 120
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Priority Improvement Action Rationale and Detail Progress Current Position Further review the options for increased commercial activity in the fleet maintenance workshops. Stage 1 of the review reached conclusions in relation to the potential to generate additional income through fleet services. The Stage 2 due diligence did not fully support the conclusion as they did not take account of the local context of Argyll and Bute including our highly rural nature, topography and long distances between vehicle operating centres (depots). However opportunities are believed to exist to further review medium to long term options to increase efficiency and / or generate additional commercial income. A further and more detailed review of capacity that involves looking at both existing capacity available for commercial work will be progressed. 02/06/2025 Work to progress an initial productivity survey, amongst other works to begin week commencing 2nd June 2025. Roads and Infrastructure Services Review - Priority Workstreams Commercial Opportunities Page 121
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Progress the initial review of commercial waste income to ensure that all in receipt of commercial waste servcies are being charged for the service of which they are in receipt. A review of back office and operational proceudres will be implemented to provide assurance that this are of service is operating to optimum levels. In progress Initial work has begun on this action with the introduction of stickers for grey commercial waste bins. The go live date for this project was 1st May 2025 and since then a number of new contracts have been implemented, the team progressing this action are still receiving a large volume of enquiries as the process beds in. Further work is underway to define and implement a process to set up commercial waste contracts for properties who do not currently have a commercial waste contract but are operating as self-catering properties or small businesses. The financial outcome of both of these projects will not be known until later in the year. Page 122
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ARGYLL AND BUTE COUNCIL ENVIRONMENT, DEVELOPMENT AND INFRASTRUCTURE COMMITTEE ROAD AND INFRASTRUCTURE SERVICES 19 JUNE 2025 WASTE LANDFILL BAN UPDATE 1.0 INTRODUCTION 1.1 This report is to provide members of the Environment, Development and Infrastructure Committee (EDI) with an update on the progress towards landfill ban compliance. A further report in September will inform the EDI committee on the impacts of the immediate and long-term preferred options to landfill ban compliance by January 2026 and management of the sites post PPP expiry in September 2026. A further update on financial pressures and funding options will also be provided. 2.0 RECOMMENDATIONS 2.1 It is recommended that Members of the Environment, Development and Infrastructure Committee consider the content of this report. 3.0 DETAIL BMW Landfill Ban and post PPP expiry service options progress 3.1 The previous report to the EDI in December 2024 provided an update on the Ban on Municipal Waste (BMW) and progress on the workstreams being taken forward to ensure a compliant solution is in place by January 2026. This report updates the progress to date and is summarised in more detail in Appendix 1. 3.2 Officers have progressed tasks to ensure that Council operated Waste sites are moving towards being able to support landfill ban compliance as set out in Appendix 1. Moreover, the sites which are operated by Biffa (formerly Renewi) which are landfill ban compliant and sites requiring change to comply with the landfill are noted in section 3.4. 3.3 The Council has a separate parallel process relating to the PPP contract hand- back. The process will be mapped out and timelines to execution agreed with Biffa in advance. This will be reported separately from the landfill ban after the commercial items are completed with Biffa. Summarised in Appendix 1. 3.4 The following table summarises the current position across the council area in terms of readiness for the BMW ban. Page 123 Agenda Item 12
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Area Current position Outstanding Actions to become BMW compliant Island sites Currently we have live landfill sites in both Islay and Mull. These sites already have infrastructure in place to facilitate waste transfer activity for general waste. Post BMW ban, general waste will be stored in the waste transfer facilities and bulked to then be transported off the islands. Waste material from the islands is pre-treated and processed by the contractors. Vary existing haulage contracts to include general waste. The varying of the contract is relatively straight forward, the main challenge will be securing ferry space to transfer the additional waste. Helensburgh and Lomond area (H&L) Existing contract is compliant and there are extension provisions contained for the affiliated service needs. No direct action required to ensure landfill ban compliance. PPP Contract Area Currently operating Mechanical Biological Treatment (MBT) plants at three locations (Oban, Lochgilphead and Dunoon), waste transfer stations at Campbeltown and Rothesay and a number of civic amenity and bring sites together with a contractual requirement to run a front loader commercial waste offering. Any requirement for pre- treatment of Waste through the PPP contract will be arranged by Biffa. Conversion of MBT plants to waste transfer stations being progressed by Biffa subject to finalising Heads of Terms. 3.5 The table above summarises the position in terms of preparation for the 2026 BMW ban. It is noteworthy that in addition to these actions there are a number of other activities underway including the removal of Compost Like Output (CLO). CLO is Waste material which has been treated and separated to then develop a CLO which can be used for the capping and restoration of landfill cells subject to SEPA approval. Officers have agreed the indexation calculations with Biffa, the indexation calculations are payments which were wrongly calculated by Biffa and the Council during the term of the contract. The difference in costs is circa £586k, the Council are required to make this payment to Biffa to conclude the matter, these actions will be progressed by Officers in conjunction with the CLO removal agreement. Biffa are testing the CLO with off-takers to test for compliant destinations. Currently estimated between £555K-£592K dependent on tonnage etc. Biffa will action as soon as SEPA provide guidance to them. Biffa await results from off-taking companies on the acceptability of the CLO to ensure compliant locations have capacity. Both of these costs have been attributed to the 2024-25 outturn position and funded from waste earmarked reserves. 3.6 Council run sites on Coll, Tiree, Mull, Islay, and Colonsay will have a compliant solution by the time the landfill ban comes into place in January 2026. Page 124
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The Blackhill site in Helensburgh is a Civic Amenity site (Recycling Centre) and all Waste material is transported from the site for re-processing. The March 2025 EDI committee agreed that the construction of a waste transfer station no longer provides the optimum solution to ensure BMW compliance and that the remainder of the £3m of capital budget earmarked for this project be retained to support other capital funding related pressures within the waste service At the end of the PPP contract in September 2026, the PPP landfill sites will revert back to the Council and an options appraisal is being developed for the future medium to longer term operating model for the services currently provided by the PPP contract. Biffa managed Waste sites requiring changes (formerly Renewi) • Lingerton, Lochgilphead – Lingerton currently has an operational landfill site, it is a Civic Amenity site and a co-mingled transfer station. To comply with the landfill ban the current Mechanical Biological Treatment plant requires to be converted to a Waste Transfer Station to facilitate the tipping on of all Waste material for re-processing. The Operational landfill site will remain open until the start of the landfill ban on the 1 Jan 2026. The Operational landfill may close after this date and it is likely that landfill restoration works would have to be completed to comply with SEPA requirements by the end of 2027. Combined costs for Lingerton and Dalinlongart are estimated at £3-4M for landfill closure and restoration works. Not budgeted and therefore noted as a cost pressure. As noted in Appendix 1 • Moleigh, Oban – Moleigh manages co-mingled waste and has a closed landfill with Civic Amenity site (Recycling Centre). Moleigh has a Mechanical Biological Treatment (MBT) plant which will require conversion to a Waste Transfer Station for all Waste material. Biffa will coordinate and manage the conversion of the MBT plant. Once the works are complete, Moleigh will be ready to support delivery of a compliant solution. • Dalinlongart, Dunoon – Dalinlongart is a recycling and waste disposal site for Dunoon and Cowal. The site has an operational landfill site, a co- mingled Waste transfer station and a MBT plant which will require conversion to a Waste Transfer Station to be compliant with the landfill ban. Biffa will coordinate and manage the changes to the site. The Operational landfill site will remain open until the start of the landfill ban on the 1 Jan 2026. The Operational landfill may close after this date and it is likely that landfill restoration works would have to be completed to comply with SEPA requirements by the end of 2027. Combined costs for Lingerton and Dalinlongart are estimated at £3-4M for landfill closure and restoration works. Not budgeted and therefore noted as a cost pressure. As noted within table in appendix 1. • The Roading, Campbeltown, Westlands, Rothesay, and Bogleha, Page 125
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Dunoon are all ready to support the delivery of a compliant solution. 3.7 Biffa have allocated a Project Manager to lead the conversion of the MBT plants to Waste Transfer Stations at Dalinlongart, Lingerton and Moleigh once the Head of Terms have been agreed by the Council. 3.8 Officers have provided a summary of all outstanding actions and timescales to Members within Appendix 1 of this report. 4.0 CONCLUSION 4.1 In concluding this report, an update on the journey towards landfill ban compliance and PPP expiry measures has been shared with Members. Furthermore, site compliance information relating to the landfill ban and essential work streams and relevant completion dates are noted, along with other Waste related activities in Appendix 1. Council operated Waste sites are ready to support delivery of a compliant solution. The Waste PPP managed sites are ready to support landfill ban compliance apart from Dalinlongart, Lingerton and Moleigh which require the current Mechanical Biological Treatments plants to be converted to Waste Transfer Stations to fulfill the requirement for landfill ban compliance. 5.0 IMPLICATIONS 5.1 Policy – The Council’s Waste Strategy will evolve in line with the changes in legislation relating to the landfill ban and circular economy bill. There will be a requirement for the current Biffa contract to be varied to enable works to be undertaken to comply with the landfill ban. The Councils Waste strategy will be updated to reflect any changes. 5.2 Financial – Compliance with the Landfill ban by the end of 2025 will require financial resource from the Council. The Council have set aside £3m in capital funds to support waste management financial pressures and £0.5m as a contribution towards the conversion of the MBT plants at three Biffa sites, to Waste Transfer Stations. In addition, the Scottish Government has committed capital funding of £1.5m to support the authority with compliance of the landfill ban. Costs, where known at this stage are set out in Appendix 1. 5.3 Legal – The existing PPP contract was not designed or written to accommodate the changes at the end of the landfill ban. The contract allows variations to be made although the process is quite cumbersome. There will be legal implications, which will need to be resolved, relating to a contract variation regarding the changes in Biffa’s contract. The outstanding commercial items within the contract are at a mature stage of closure. SEPA advice on landfill site methodology acceptance, CLO, and permit/licensing will inform further legal matters 5.4 HR – HR issues will be addressed prior to and during the process of contract Page 126
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handback. Having sufficient resource will factor into the project demands of waste management. TUPE may be relevant at the handback and during the process of progressing to handback should the Council operate the sites themselves. 5.5 Customer Service – None. 5.6 Risk - A refresh of all Waste PPP costs have been undertaken. The costs reflect the previous financial analysis with the only increase being inflationary costs. 5.7 Climate Change - Transitioning from Landfill to Energy from Waste (EfW) would result in a reduction in the annual quantity of Greenhouse Gas generated in Argyll and Bute. Additional road miles incurred taking waste to EfW markets will partly offset the carbon reductions achieved through not landfilling. 5.8 Fairer Scotland Duty - None. 5.9 Equalities –protected characteristics - None. 5.10 Consumer Duty – None. 5.11 Island Communities – There may be potential ferry capacity issues for bulking and transporting waste material from islands, this has been raised with Transport Scotland. 5.12 Children’s Rights and Wellbeing - None arising from this report. Executive Director with responsibility for Roads and Infrastructure: Kirsty Flanagan Policy Lead for Roads, Transport and Amenity Services: Councillor John Armour June 2025 For further information contact: John Blake, Fleet, Waste and Transport Manager Kirsteen MacDonald, Project Manager – Waste APPENDICES APPENDIX 1 – Summary of Waste Sites Progress Page 127
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APPENDIX 1 – Summary of Waste Sites Progress Location Status Actions Next steps Estimated Cost Impact Timescale for completion RAG Status Island sites Mull and Islay: waste transfer stations complete and can accommodate general waste and co- mingled waste. All waste material can be accommodated through existing contracts when the landfill ban is implemented, i.e. 1 January 2026 No actions required Assess tender returns Haulage/gate fee costs already factored into the existing budget for 2025/26. Figures can be extrapolated by finance if required for accuracy. Tender will be assessed by 19th June 2025. Anticipate rise in cost due to transport price rises Complete GREEN Coll and Tiree: general waste materials can be accommodated through existing contracts when the landfill ban is implemented, i.e. 1 January 2026 No actions required As above Coll and Tiree already landfill ban compliant therefore no additional costs. General waste already goes to central belt for processing. Haulage tender will be assessed by 19th June 2025. Anticipate rise in cost due to transport price rises Complete GREEN Plans for the closure of landfill sites at Gartbreck, Islay and Glengorm, Mull post 2026 Appoint a consultant to plan for the closure of the operational landfill sites at Gartbreck and Glengorm. Capping In line with other capping off and closure sites, this will form part of the external consultants appraisal on when Capital monies will be required for landfill closure and restoration works post to landfill ban 2026/27/28. £2 m is ballpark estimated from officer discussions. Revised to August 2025 AMBER Page 128
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and restoration of sites will be required. Potentially added to SLR contract and how to tender these works Not verified. Not budgeted and noted as a cost pressure Helensburg h and Lomond Complaint solution currently in place with options to extend the contract No actions required for disposal Scope of service to be added to full council area analysis Already budgeted so no impact. Complete GREEN PPP contract – Biffa Sites operating MBT technology instructed to divert material from landfill Biffa instructed to commence pre MBT removal works in letter of intent. This will enable full works to commence as soon as variation to PPP contract agreed. Our expectations of BIFFA will be detailed in the variation documentation Works information to be agreed as part of the PPP variation, then funding authorisation to commence MBT conversions Biffa estimate circa £1.3 - £1.5m but estimate (as at October 2024) not verified. Amount from Scottish Government to assist costs set at £1.5m. Additional £500K is earmarked council capital towards costs 31 December 2025 completion of works for three sites AMBER Instruct Biffa to dispose of the excess of CLO, off site, as per the proposals drafted by Renewi. Biffa to secure resolution from SEPA prior to sign off Ratify advice from SEPA and assess market testing returns with BIFFA. Currently estimate circa £555k - £592K dependent on tonnage etc. Included in 2024-25 outturn and funded from waste earmarked reserves. Decision pending from SEPA as at 29/05/25. RED Closure of Dalinlingart and Route to closure works contracts will Capital monies will be required for landfill closure Post January 2026 AMBER Page 129
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Lingerton operational landfill sites will be required. Capping and restoration of sites will be required post landfill ban. Monitoring and environmental management will be required in perpetuity. be determined by preferred option selection followed by scoping of what each site will require and restoration works post to landfill ban 2026/27/28. £3-4 m is ballpark estimated from Biffa from October 2024. Not budgeted and therefore noted as a cost pressure EfW costs will be tendered by BIFFA who have agreed to share bidder submissions to allow ABC to comment/input regarding costing model including gate and haulage fees Information from BIFFA will inform next steps Prices have been asked to include pre-treatment as pre-treatment derogation has not been achieved as yet from SEPA. TBC AMBER Option appraisal ongoing to assess the future operating model post PPP. This will include the options to operate waste transfer stations at Dalinlongart, Lingerton and Present initial option selection and Risk/Options for regulatory and Procurement discussion Initial estimate at £150K. Ongoing from March 2025 as part of the external commission for future operational capacity and capability post PPP AMBER Page 130
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Moleigh and also restoration of landfill sites. This is based on being able to achieve realistic and competitive rates/prices and also being compliant with procurement and regulatory legislation. Commission will appraise all council sites including the PPP sites Close down and agree indexation discussions based on advice received from legal services regarding contract obligations. Await SEPA advice and BIFFA action following meeting 25/4/25 £586K agreed and verified. Included in 2024- 25 outturn and funded from waste earmarked reserves. 31 March 2025. Indexation agreed but not signed until CLO matters closed out AMBER Close down and agree contractual requirements relating to Void Space. No longer an issue due to Biffa confirming void space requirements adhered to irrespective of landfill ban Complete Determine what provision would be required and how this Await model decision This can be estimated as soon as council decide what model will be Ongoing until September 2026 RED Page 131
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would be delivered in relation to the commercial waste collection requirements contained within the original contract. implemented Continue to progress handback discussions with Biffa Start to scope the workstreams to be delivered within the PPP handback provisions in the contract. SLR has been asked to start this mapping exercise Depends on what route is followed for handback. Linked with ongoing outstanding contractual negotiations and potential contracting model etc Ongoing until September 2026 RED Page 132
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ARGYLL AND BUTE COUNCIL ENVIRONMENT, DEVELOPMENT AND INFRASTRUCTURE COMMITTEE ROAD AND INFRASTRUCTURE SERVICES 19 JUNE 2025 MARINE OPERATIONS: COUNCIL FERRY SERVICE: HITRANS GRANT 1.0 INTRODUCTION 1.1 This report advises Members of £1.564m of capital funding available for allocation to suitable projects with Argyll and Bute Council and internal ferry operations. 2.0 RECOMMENDATIONS 2.1 It is recommended that the Environment, Development and Infrastructure Committee:- (a) Agree that funds are allocated as follows:- i. engage with suitable contractors to realise on-site accommodation at Port Askaig; ii. to engage with suitable Naval Architects to develop a ‘keel ready’ concept design for the Eilean Dhiura replacement ferry; iii. funds to engage with suitable consultants to update and progress plans for the Cuan ferry infrastructure for use by the Eilean Dhiura and Belnahua vessels; and (b) In the event that part of the grant remains, approve ringfencing the fund for continued works on this Priority Strategy. 3.0 DETAIL 3.1 In 2024 Argyll and Bute Council was contacted by HITRANS and informed that £1,564,000 grant funds had been identified to support capital investment across Argyll and Bute Council’s internal ferry operations, including the Cuan Sound and Jura services. 3.2 The funds had been held for some time in a transaction between Strathclyde Partnership for Transport (SPT) and HITRANS, however following accounting Page 133 Agenda Item 13
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and auditing checks this is now available for allocation to suitable projects with Argyll and Bute Council’s internal ferry operations. 3.3 In September 2024 the Environment, Development and Infrastructure Committee “approved the vessel priority strategy as illustrated in table 2 at 3.4 of the submitted report” reproduced below as Table 1. Table 1 Vessel Priority Strategy 3.4 Members are asked to align and allocate funds to the previously agreed priorities as follows: 1. Engage with suitable contractors to realise on-site accommodation at Port Askaig, 2. Engage with suitable Naval Architects to develop a ‘keel ready’ concept design for the Eilean Dhiura replacement ferry, and Priority Description Benefits 1 On-site accommodation at Port Askaig. Present situation requires Officers and crew to be residents of Islay as well as suitably qualified. Along with the market supplement and the 7-day rota, this will allow the recruitment of suitably certified Officers required for resilience and new vessel minimum manning levels. 2 Funding for concept design to ‘Keel Ready’ for the new Jura vessel. To identify capacity levels; fuel type; crew size and infrastructure upgrade requirements. Also allows for a more accurate assessment / estimate of build & certification costs. 3 Jura New Build (and associated infrastructure at Feolin & Port Askaig). Fit for purpose and the future vessel to support the Jura community for the next 20 – 30 years. 4 Eilean Dhiura is re-deployed to the Cuan / Luing route (and associated slipway upgrades on the route). A marked upgrade for the island capable of refuse collection, HGV and capacity increase from c.15t to c.40t. Due to life extension on Belnahua (2024) and Eilean Dhiura (2022) service expects to make savings by utilising Belnahua as relief vessel (for Dry dock) etc. 5 Easdale work boat replacement with landing craft type vessel. TBD Page 134
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3. Engage with suitable consultants to update and progress plans for the Cuan ferry infrastructure for use by the Eilean Dhiura and Belnahua vessels. 3.5 In the event that monies remain following these aspects of the plan, it is proposed that the funds remain available for allocation towards the next steps which along with sourcing additional funding, would include infrastructure design for Port Askaig and Feolin; tender preparation for shipyards; land purchases; construction of Cuan slipways and consultant project management. 4.0 CONCLUSION 4.1 This report provides Members with detail in relation to the £1.564m of capital funding available for allocation to suitable projects with Argyll and Bute Council and internal ferry operations. 5.0 IMPLICATIONS 5.1 Policy - Agreed consensus allocation of available grant funds. 5.2 Financial - Grant funds may be described as match or other funding for other available grants e.g. Islands Programme. 5.3 Legal – None associated with this report. 5.4 HR – Possible crew contracts and pay implications. 5.5 Customer Service – Complaints about current service levels will increase as vessels age. 5.6 Risk – Insufficient subsidy and infrastructure decline. 5.7 Climate Change – Rising water levels on infrastructure, more extreme weather events. More efficient propulsion for emission control to Net Zero. 5.8 Fairer Scotland Duty – True Lifeline services, school, health and business, Islands Connectivity Plan. 5.9 Equalities – Protected Characteristics – vessel accessibility. 5.10 Consumer Duty – Lifeline ferries with no other means to travel to / from islands. 5.11 Island Communities – True Lifeline services, school, health and business, Islands Connectivity Plan. 5.12 Childre’s Rights and Wellbeing – Education and social access to mainland facilities and services. Executive Director with responsibility for Roads and Infrastructure: Kirsty Flanagan Page 135
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Policy Lead for Roads, Transport and Amenity Services: Councillor John Armour June 2025 For further information contact: Scott Reid, Marine Operations Manager Scott.Reid@argyll-bute.gov.uk Page 136
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ARGYLL & BUTE COUNCIL ENVIRONMENT, DEVELOPMENT AND INFRASTRUCTURE COMMITTEE LEGAL AND REGULATORY SUPPORT 19 JUNE 2025 EXTRACT OF MINUTE OF THE MID ARGYLL, KINTYRE AND THE ISLANDS AREA COMMITTEE HELD ON 4 JUNE 2025 12. NOTICE OF MOTION UNDER STANDING ORDER 13 The following Notice of Motion moved by Councillor John Armour, seconded by Councillor Anne Horn was before the Committee for consideration – Naming of Tarbert Playpark Late 2024 saw the successful conclusion of a very positive partnership project involving Argyll and Bute Council and the community of Tarbert, when a £100,000 upgrade of the village’s playpark was completed. The Council worked with local people and groups, who co-designed the playpark, to ensure that children and young people in Tarbert have a wonderful outdoor facility which contributes to mental and physical health and wellbeing – as well as being simply a great place to play outside. Many people have been involved in bringing this vision to life, but one of those who campaigned so passionately for a playpark in Tarbert is sadly no longer with us to see the enjoyment it brings to the community. The late Councillor John McAlpine played a key role in ensuring that this project was able to secure the funding it needed to make it a reality and was tireless in his determination to ensure that the village he loved so much could benefit from a new playpark. Sadly, John passed away in July 2022 and did not see the results of his hard work and dedication. Following discussions with his family and the local community, and given his service to the community over many years, a very fitting tribute to John would be for the new playpark to bear his name. Therefore, the Mid Argyll, Kintyre and the Islands Area Committee recommends to the Environment, Development and Infrastructure Committee that they: 1. Acknowledge the efforts made by John McAlpine in ensuring that Tarbert’s playpark was upgraded and improved for the benefit of local young people, alongside the contributions made by the community as a whole to this much- appreciated local amenity. 2. Agree that the Tarbert Playpark should be formally named ‘The John McAlpine Playpark’. Page 137 Agenda Item 14
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3. Ask officers to make the necessary arrangements to formally record the playpark name as required and for the installation of appropriate signage. Decision The Mid Argyll, Kintyre and the Islands Area Committee agreed the terms of the Motion. (Reference: Notice of Motion under Standing Order 13 by Councillor John Armour, seconded by Councillor Anne Horn, submitted) Page 138
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Environment, Development and Infrastructure Committee Work Plan 2025/26 This is an outline plan to facilitate forward planning of reports to the Environment, Development and Infrastructure Committee. Date Title Service/Officer Date Due Comments 19 June 2025 Empty Business Property– Update on Business Grant Scheme Development and Economic Growth 27 May 2025 Housing Emergency Update Development and Economic Growth Community Wealth Building Bill and Cruise Ship Levy Bill Consultations: Argyll and Bute Council Officer Responses Development and Economic Growth Scottish Government Funding – Islands Programme, Carbon Neutral Islands Capital Fund and Regeneration Capital Grant Fund Development and Economic Growth Argyll and Bute Local Transport Strategy Issues Report Development and Economic Growth Remembering Together – Co-creating Covid Community Memorials - Complete Roads and Infrastructure Services Temporary Traffic Regulation Orders Charging and Advertising Roads and Infrastructure Services Review of Roads and Infrastructure Services - Update Roads and Infrastructure Services Page 139 Agenda Item 15
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Environment, Development and Infrastructure Committee Work Plan 2025/26 Waste Landfill Ban Update Roads and Infrastructure Services Marine Operations: Council Ferry Service: HiTrans Grant Roads and Infrastructure Services Naming of Tarbert Playpark Legal and Regulatory Services Waste Disposal – Options Post PPP Contract Roads and Infrastructure Services September 2025 Winter Service Policy Roads and Infrastructure Services Transformational Projects Regeneration Team Large Scale Projects Update Development and Economic Growth Registration of a Subsidy Control Scheme Development and Economic Growth Community Empowerment (Scotland) Act 2015 - Allotments Waiting List Register Legal and Regulatory Support December 2025 Annual Status and Options Report (ASOR) Roads and Infrastructure Services Future Items Shared Prosperity Fund Development and Economic Growth Roads Development Framework Roads and Infrastructure Services EVC Tariffs Roads and Infrastructure Services Agreed 21.03.24 Second Domestic Bin Review Roads and Infrastructure Services Updates to be provided on progress Page 140
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Environment, Development and Infrastructure Committee Work Plan 2025/26 Footway reconstruction Programme Roads and Infrastructure Services Cemetery Asset Update Roads and Infrastructure Services Active Travel Strategy Development and Economic Growth Page 141
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Document is Restricted Page 143 Agenda Item 16NOT FOR PUBLICATION by virtue of paragraph(s) 9 of Schedule 7A of the Local Government(Scotland) Act 1973
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