Evaluation of the Argyll and Bute Gift Card Scheme
Argyll and Bute Council · 4 December 2025
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH TRANSFORMATION, PROJECTS AND REGENERATION 4TH DECEMBER 2025 EVALUATION OF THE ARGYLL AND BUTE GIFT CARD SCHEME 1.0 EXECUTIVE SUMMARY 1.1 This report presents an overview of the Love Local Argyll and Bute Gift Card scheme, introduced in 2021 as part of the Council’s COVID-19 economic recovery response. The scheme was established to support local businesses, stimulate local spend and provide a secure, place-based mechanism for the delivery of targeted public funding, including cost-of-living support. 1.2 Since its inception, the scheme has facilitated over £939,000 in spend within the Argyll and Bute economy and secured the participation of more than 350 local businesses. In addition to gift card purchases by members of the public, the scheme was utilised to distribute public disbursements, including the Local Authority COVID Economic Recovery (LACER) and Islands Cost Crisis funding, reinforcing its role as a practical and locally responsive economic development tool during a period of significant need. 1.3 However, an evaluation of the scheme’s financial performance has highlighted that uptake through unsubsidised sales has remained modest in comparison to annual facilitation costs, which up until March 2026 will have been supported through LACER funds. While the scheme has achieved several of its intended outcomes, future growth would require a more commercial and sales-led approach, which falls out with the Council’s core remit. 1.4 Following discussions with the scheme provider Miconex, the Council has secured a revised offer to continue the Gift Card programme until the end of the current contract term (12 October 2027). This includes a 15% discount on physical programme fees, reducing monthly costs from £600 to £510, and a full waiver of the digital programme fee. In addition, Miconex and Scotland’s Towns Partnership have agreed to deliver previously commissioned promotional services at no cost. These discounts have been offered in recognition of the Council’s inability to identify ongoing funding for the annual facilitation costs, which have ranged from £9,000 to £13,000 per year, following the expiry of LACER support. The revised terms reduce the
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total cost of continuation to £17,040, representing a £6,690 saving compared to standard fees. 1.4 Members are asked to note that the costs of terminating the scheme early would be £17,815. This is due to back to back commitments that Miconex has with both the issuer EML and Mastercard. As such, Argyll and Bute Council would be liable for these costs up to the contract end date. 1.5 It is therefore proposed that the scheme has now reached a natural conclusion and will be terminated at the next renewal date of 12th October 2027 following a period of business/customer support and a gradual wind down of the scheme. The Council will continue to promote the “Shop Local” message through corporate communications and community engagement activity and will refocus support for local economic development through alternative mechanisms that align more closely with its strategic responsibilities. This includes place-based investment and direct support for small and medium-sized enterprises through services such as Business Gateway. 2.0 RECOMMENDATIONS 2.1 It is recommended that the P&R Committee: 1. Note the positive outcomes of the Love Local Argyll and Bute Gift Card scheme, including its role in supporting local businesses and facilitating targeted public funding since its introduction in 2021. 2. Approve proposals to continue the scheme until the end of the current contract term (12 October 2027), with a focus on optimising impact, supporting businesses and winding down the scheme. 3. Approve the revised contract terms offered by Miconex, including a 15% discount on physical program fees and the waiver of digital program fees for the remainder of the term. 4. Approve additional spend of £17,040 in respect of the cost of proposals to continue the scheme until the end of the current contract term (12 October 2027), to be funded from the remaining uncommitted earmarked reserve balance (£22,826) in respect of LACER funding. 5. Agree that the Council will provide notice to Miconex on or before 12 April 2027 to terminate the scheme. 6. Endorses proposals for the Council to continue to promote the “Shop Local” message through the corporate communications team and other community engagement activities.
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH TRANSFORMATION, PROJECTS AND REGENERATION 4TH DECEMBER 2025 EVALUATION OF THE ARGYLL AND BUTE GIFT CARD SCHEME 3.0 INTRODUCTION 3.1 The Love Local Argyll and Bute Gift Card scheme was introduced in 2021 as part of a national economic recovery programme coordinated by Scotland’s Towns Partnership and supported by the Scottish Government in response to the impacts of the COVID-19 pandemic. The scheme formed part of the Scotland Loves Local initiative and was adopted by Argyll and Bute Council to support local economic recovery, encourage community-based spending and provide a secure and efficient platform for the disbursement of public funding. 3.2 Through the use of a prepaid gift card, the scheme aimed to retain local spend within businesses operating within Argyll and Bute, offering residents a way to support businesses directly while also enabling the Council to deliver targeted financial assistance via funds such as the Local Authority COVID Economic Recovery (LACER) Fund and the Islands Cost Crisis Fund. 3.3 This report provides an assessment of the scheme’s performance, and outlines the rationale for concluding these activities on the 12th October 2027 and focus on measures that align with the Council’s current economic development priorities and financial responsibilities. 4.0 RECOMMENDATIONS 4.1 It is recommended that the P&R Committee: 1. Note the positive outcomes of the Love Local Argyll and Bute Gift Card scheme, including its role in supporting local businesses and facilitating targeted public funding since its introduction in 2021. 2. Approve proposals to continue the scheme until the end of the current contract term (12 October 2027), with a focus on optimising impact, supporting businesses and winding down the scheme.
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3. Approve the revised contract terms offered by Miconex, including a 15% discount on physical program fees and the waiver of digital program fees for the remainder of the term. 4. Approve additional spend of £17,040 in respect of the cost of proposals to continue the scheme until the end of the current contract term (12 October 2027), to be funded from the remaining uncommitted earmarked reserve balance (£22,826) in respect of LACER funding. 5. Endorses proposals for the Council to continue to promote the “Shop Local” message through the corporate communications team and other community engagement activities. 5.0 DETAIL 5.1 The Love Local Argyll and Bute Gift Card scheme was introduced in 2021 as part of the Scottish Government’s COVID-19 recovery programme, coordinated nationally by Scotland’s Towns Partnership. Delivered locally with support from the supplier Miconex, the scheme aimed to stimulate community-level economic activity, retain spend within the region and provide a secure, flexible mechanism for distributing public funds to support households and local businesses. The first year of operation was funded by the Scottish Government, with responsibility thereafter falling to individual local authorities. It was agreed at Full Council on 28th April 2022 that funding from Local Authority COVID Economic Recovery (LACER) could be used to support the annual facilitation fees and associated marketing costs for operating the Gift Card. The LACER funding previously agreed to fund the gift card scheme will be fully expended during this financial year (2025/26) however, circa £22k of uncommitted LACER funding remains in earmarked reserves due to underspend on other projects. It is intended to use this funding to pay for the remaining contract costs up until October 2027. The Council have also undertaken an evaluation to determine whether the scheme represents good value for money to seek additional funding to take into future years. 5.2 Over the course of its operation, the scheme has facilitated over £939,000 in spend across Argyll and Bute and enabled the participation of more than 350 local businesses, including both town centre and rural enterprises. It has been used both for direct consumer purchases and for the delivery of public funding allocations, including the LACER and Islands Cost Crisis Funds. Latterly corporate gifting has been targeted as a potential area to grow sales. 5.3 A detailed review of the scheme’s performance has been undertaken to assess its ongoing viability and financial sustainability with a view to determining whether it is worthwhile seeking funding to support the ongoing annual running costs. This review focused particularly on unsubsidised card sales, i.e. gift cards purchased by individuals and organisations outside of public
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disbursement programmes as the clearest measure of public uptake and long- term viability. The following table summarises the scheme’s performance between 2022 and mid-2025: 5.5 An analysis of unsubsidised sales against annual facilitation costs highlights that, while the scheme generated modest income through public take-up, it does not appear to represent good value for money. Facilitation costs, which include the operational charges paid to the scheme provider Miconex, were between £9,000–£13,000 per year. In comparison, unsubsidised sales fluctuated between £8,000 and £20,000 per year, depending on levels of local engagement and promotional activity. The return on investment (ROI) calculated as the amount of unsubsidised spend generated for every £1 spent on facilitation, ranged from £0.76 to £2.10, with the strongest performance observed in 2024 following targeted awareness-raising activity. 5.6 The scheme was supported through a one-off £10,000 marketing budget, also funded through LACER, which was effectively used to undertake promotion, onboard businesses and align with wider "shop local" messaging. Whilst budget was available to support these activities, substantial staff resource was also required to raise the profile of the card amongst businesses and consumers. Whilst the sales figures demonstrate some positive correlation between investment and uptake, the overall financial model remains insufficient to justify ongoing Council funding in its current form. While unsubsidised sales provide the clearest indicator of the scheme’s long- term viability, it is important to note the gift card also played a significant role in supporting the local economy through the targeted disbursement of public funding. This directly benefited local businesses across Argyll and Bute, helped Year Organic Sales (£) Redemptions (£) Includes LACER / Islands disbursement allocations Facilitation Cost (£) Does not include Officer time Funding Source 2022-23 £7,755.00 £377,195.25 £9,715.00 Scottish Government Pilot and Rollover 2023-24 £19,525.00 £781,222.79 £13,320.00 LACER Funded 2024-25 £20,860.00 £115,231.22 £9,000.00 LACER Funded 2025-26 (to 31st July 2025) £3,346.00 £42,884.92 £9,000.00 LACER Funded
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sustain employment and provided residents with a flexible, dignified way to access financial support. The scheme therefore made a meaningful contribution to local economic resilience during a period of significant challenge and demonstrated the value of place-based delivery mechanisms in channelling support where it was most needed. Officers are however unable, given the demonstrated use, to justify a recommendation which seeks additional funding to continue the scheme past the contract term date of 12th October 2027. 5.7 While officers have explored alternative delivery models, no suitable partner has been identified to take on operational responsibility or cover the scheme’s ongoing costs. In this context and with the initial objectives now met, it is proposed that the scheme be concluded in a planned and managed way. This will include: • Engagement with participating businesses and customers • Closure of contractual arrangements with Miconex including providing notice by the 12th April 2027, commencing the 6 month statutory notice period. • Integration of local spend promotion into wider economic and community development activity 5.6 Following discussions with the scheme provider Miconex, the Council has secured a revised offer to continue the Gift Card programme until the end of the current contract term (12 October 2027). This includes a 15% discount on physical programme fees, reducing monthly costs from £600 to £510, and a full waiver of the digital programme fee. In addition, Miconex and Scotland’s Towns Partnership have agreed to deliver previously commissioned promotional services at no cost. These discounts have been offered in recognition of the Council’s inability to identify ongoing funding for the annual facilitation costs, which have ranged from £9,000 to £13,000 per year, following the expiry of LACER support. The revised terms reduce the total cost of continuation to £17,040, representing a £6,690 saving compared to standard fees. 5.7 Funding has been identified across existing residual uncommitted earmarked reserve balances to meet the costs set out above until the end of the contract period in October 2027. 5.8 Members are asked to note that the costs of terminating the scheme early would be £17,815. This is due to back to back commitments that Miconex has with both the issuer EML and Mastercard. As such, Argyll and Bute Council would be liable for these costs up to the contract end date. 5.9 The Council’s Communications team continues to promote local shopping as part of its corporate messaging strategy whilst the Transformation, Projects and Regeneration Team is actively supporting our communities with place-based investment activities and Business Gateway support businesses directly. Officers recognise the importance of these activities and will continue to promote
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the shop local message. This approach will enable the Council to focus its staff resources on ongoing projects and priority areas which we believe can deliver greater impact through place-based economic development, town centre regeneration and targeted business support. 6.0 CONCLUSION 6.1 Whilst the Love Local Argyll and Bute Gift Card scheme has been a valuable response to the impacts of the COVID-19 pandemic - particularly through the disbursement of targeted funding allocations, it does not appear to have grown into an important and valuable part of consumer or corporate gifting and spending within Argyll and Bute. With funds set aside to support the establishment and promotion of the Gift Card now depleted, no identified funding to support the ongoing fees and no viable solution to take this forward, officers are recommending that the Gift Card is concluded at the end of the contract term. Officers do, however, fully recognise the importance of encouraging and promoting the shop local message as a way to support our high streets. The Transformation, Projects and Regeneration Team and Communications Team will continue to promote the shop local message within the remit of our ongoing projects and activities. 7.0 IMPLICATIONS 7.1 Policy The proposed conclusion of the Love Local Argyll and Bute Gift Card scheme is consistent with the Council’s duty to achieve best value and ensure efficient use of public funds. While the scheme delivered measurable benefits in the context of pandemic recovery, its continuation is no longer considered the most effective or financially sustainable means of supporting local businesses. The Council will continue to support local economic activity through other interventions aligned with policy frameworks such as the Argyll and Bute Economic Strategy. 7.2 Financial The revised offer from Miconex reduces the total cost of continuation to £17,040, representing a saving of £6,690. This relieves some of the financial pressure previously associated with annual facilitation fees and avoids the upfront costs of early termination. Bringing the scheme to a planned conclusion will remove an ongoing financial pressure of approximately £9,000 - £13,000 per annum from the Transformational Projects and Regeneration Teams revenue budget. There
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are no redundancy costs associated with this proposal, and any residual administrative activity will be managed within existing budgets. 7.3 Legal There are no significant legal implications, the scheme is delivered through a service contract with Miconex Ltd, which includes provisions for termination by either party. Appropriate notice will be issued in accordance with the terms and conditions of the agreement, and officers will liaise with the provider to ensure a managed and compliant wind-down process. Any remaining obligations in relation to data protection, contractual reporting, or communications with participating merchants will be fulfilled prior to scheme closure. Legal Services will be consulted as required to ensure full compliance with procurement and contractual responsibilities. 7.4 HR There are no direct HR implications arising from this proposal. The scheme has been managed within existing staff resources, and its conclusion will not result in any changes to staffing levels, roles, or responsibilities. 7.5 Customer Service The scheme’s closure will be managed carefully to ensure continuity for existing cardholders and operating businesses. Clear communications will be issued through the Council’s website, social media channels and via direct contact with participating merchants to minimise confusion or inconvenience to service users. Customer service enquiries will continue to be handled by the scheme provider (Miconex) until final closure, with oversight from Council officers where required. 7.6 Risk Should the scheme continue without a revised delivery model, there is a risk that the Council will incur ongoing operational costs without achieving a corresponding return on investment. This may result in reduced value for money and the diversion of limited economic development resources away from other strategic priorities. Without a dedicated sales function or external delivery partner, the scheme is unlikely to generate sufficient growth in unsubsidised sales to become financially self-sustaining. Bringing the scheme to a managed close mitigates these risks and ensures that public funds are directed towards activity with demonstrable strategic impact and sustainability. There is some risk of reputational damage given that the Council has promoted the card, however it is clear that the card has delivered benefits associated with the dispersal of LACER and Island Cost Crisis funding.
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7.7 Climate Change Not applicable. 7.8 Fairer Scotland Duty Not applicable. 7.9 Equalities - protected characteristics Not applicable. 7.10 Consumer Duty The Council has maintained a duty of care to consumers throughout the operation of the Love Local Argyll and Bute Gift Card scheme, ensuring that all purchases, redemptions, and disbursements were delivered in a secure, transparent, and accessible manner. Appropriate communications will be issued to ensure that users are informed and supported during the transition period. There are no concerns in relation to consumer protection arising from the managed conclusion of the scheme. Officers will continue to monitor any residual enquiries to ensure that consumer expectations are met in full. 7.11 Island Communities The Love Local Argyll and Bute Gift Card scheme has provided a flexible and accessible mechanism for supporting small businesses and residents across the Council’s island communities. Its use in distributing targeted cost-of-living support, including through the Islands Cost Crisis Fund, enabled equitable access to resources in remote and rural settings. While the scheme has contributed positively to island resilience and local spend retention, its overall impact must now be balanced against the cost and sustainability of ongoing facilitation. The recommendation to conclude the scheme is not anticipated to disproportionately affect island communities, particularly as alternative mechanisms for support and shop local promotion will continue to be delivered through existing Council programmes. 7.12 Children’s Rights and Wellbeing Not applicable. Kirsty Flanagan Executive Director with responsibility for Development and Economic Growth Policy Lead Councillor Math Campbell-Sturgess for Business Development 31st October 2025
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For further information contact: Jonathan Welch, Transformation, Projects and Regeneration Manager Natasha Galbraith, Economic Regeneration Officer