Crown Estates Funding Allocations 2025/26 and Redirection of Previously Allocated Project Funding
Argyll and Bute Council · 21 August 2025
Back to Policy and Resources Committee — 21 August 2025 and its agenda
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 21 AUGUST 2025 CROWN ESTATES FUNDING ALLOCATIONS 2025/26 AND REDIRECTION OF PREVIOUSLY ALLOCATED PROJECT FUNDING 1.0 EXECUTIVE SUMMARY 1.1 The Scottish Government has written each year to Councils advising of the distribution of the net revenue generated from the Scottish Crown Estate’s marine asset out to 12 nautical miles for their respective council area. These annual revenue allocations are distributed in arrears following the finalisation of the annual accounts for the Scottish Crown Estate. 1.2 The expectation is that Local Authorities would use the funding for additional expenditure that specifically benefits coastal communities, with individual authorities making decisions on funding of projects to benefit coastal communities and being transparent and accountable to their communities and others for expenditure. 1.3 This report brings forward proposals for the 2025-26 allocation, recommends a change to funding previously agreed for a Building Aires style campervan site in Dunoon (Glenmorag Car Park) and recommends a change to the use of the funds allocated for Kintyre Sea Sports (KSS). 1.4 The Council is still awaiting confirmation of the allocation for this financial year (2025/26) and it is unclear as to when formal written notification will be given of this year’s allocation. However, based on previous years allocations, a prudent estimate of £0.8m of anticipated funding in 2025/26 could be committed and consideration given by elected members as to how this funding should be allocated considering the guidance. RECOMMENDATIONS It is recommended that Policy and Resources Committee: a) Agree to the allocation of the Crown Estate funding for 2025/26 to the projects outlined in Table 1, paragraph 4.2.1.
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b) Agree to varying the use of previously allocated Crown Estate funding assigned to a now confirmed unviable project Building Aires style campervan site in Dunoon (Glenmorag Car Park) for a simpler, smarter and more sustainable Aires Project in Cowal. c) Note the update provided in relation to the planning application for the new Kintyre Sea Sports facility and approve the revised scope of project activities to be funded from the £200k of Crown Estates Funding previously approved by the Policy and Resources Committee in February 2025.
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 21 AUGUST 2025 CROWN ESTATES FUNDING ALLOCATIONS 2025/26 AND REDIRECTION OF PREVIOUSLY ALLOCATED PROJECT FUNDING 2.0 INTRODUCTION 2.1 Scottish Ministers made a commitment in 2014 that they would provide 100% of the net revenue from Scottish Crown Estate marine assets out to 12 nautical miles to Local Authorities for coastal community benefit if management of the assets was devolved. The expectation was that Local Authorities would use the funding for additional expenditure that specifically benefits coastal communities, with individual authorities making decisions on funding of projects to benefit coastal communities and being transparent and accountable to their communities and other for expenditure. 2.2 The council is still awaiting confirmation of the allocation for this financial year (2025/26) and it is unclear as to when formal written notification will be given of this year’s allocation. However, it is considered, based on previous year’s allocations, that a prudent estimate of £0.8m of anticipated funding in 2025/26 should be considered and consideration given by elected members as to how this funding should be allocated considering the guidance. 2.3 This report brings forward proposals for the 2025-26 allocation, recommends a change to funding previously agreed for a Building Aires style campervan site in Dunoon (Glenmorag Car Park) and recommends a change to the use of the funds allocated for Kintyre Sea Sports (KSS). 3.0 RECOMMENDATIONS 3.1 It is recommended that Policy and Resources Committee: a) Agree to the allocation of the Crown Estate funding for 2025/26 to the projects outlined in Table 1, paragraph 4.2.1. b) Agree to varying the use of previously allocated Crown Estate funding assigned to a now confirmed unviable project Building Aires style campervan site in Dunoon (Glenmorag Car Park) for a simpler, smarter and more sustainable Aires Project in Cowal. c) Note the update provided in relation to the planning application for the new Kintyre Sea Sports facility, and approve the revised scope of project activities
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to be funded from the £200k of Crown Estates Funding previously approved by the Policy and Resources Committee in February 2025. 4.0 DETAIL 4.1 BACKGROUND 4.1.1 The Scottish Government has written each year to Councils advising of the distribution of the net revenue generated from the Scottish Crown Estate’s marine asset out to 12 nautical miles for their respective council area. These annual revenue allocations are distributed in arrears following the finalisation of the annual accounts for the Scottish Crown Estate. 4.1.2 The Crown Estate fund is targeted at the sustainability of coastal communities within the categories noted below and the Council must advise how the funding is spent as part of the annual reporting requirements. Categories of expenditure are: - • Environment • Community • Climate Change. • Economic Development 4.1.3 The challenge in respect of the funding has always been to identify projects that meet the criteria and can be delivered within short timeframes with our limited staff resources especially given the sheer number of projects that we are already involved in delivering. 4.1.4 The funding can be used by the council to deliver council projects or can be provided as a grant to third sector organisations to assist in the delivery of a community project. 4.1.5 This report brings forward proposals for the 2025-26 allocation, recommends a change to funding previously agreed for a Building Aires style campervan site in Dunoon (Glenmorag Car Park) and recommends a change to the use of the funds allocated for Kintyre Sea Sports (KSS). 4.2 2025-26 ALLOCATION 4.2.1 The proposed projects and associated allocation for Crown Estate funding in 2025-26 are listed below in Table 1.
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Table 1 – Crown Estate 2025/26 Allocation Project Delivery by Crown Estate Allocation Inveraray Avenue Screen refurbishment Development & Economic Growth £120,000 Gallanach Road - Rock Slope Protection Road and Infrastructure Services £300,000 Tarbert Heritage and Place Programme - Match Funding (note this was agreed by Council in June and is noted here for information) Development & Economic Growth £115,000 for the next 4 years* CARS Projects - flexible fund to support businesses with capital improvements to shopfronts/buildings building on previous CARS investment Development & Economic Growth £150,000 Victoria Hall, Campbeltown – repair and refurbish entire front elevation. Development & Economic Growth £50,000 Dunoon Public Realm Development & Economic Growth £65,000 TOTAL £800,000 * Subject to a successful funding bid now submitted to HES and HLF. 4.2.2 Members are asked to note that it is considered the CARS flexible fund will support on-going projects in Lochgilphead, Helensburgh and Tarbert as well as regeneration works in other conservation areas. This will support activities such as shopfront upgrades and smaller repairs to heritage buildings within these towns. Project leads would undertake an open call for interest in both the shopfront and smaller repair grants. 4.2.3 This funding could also support measures being delivered via the Council’s Empty Business Property grants which are targeted at interventions that support property owners and tenants to bring vacant business premises back into productive use. 4.2.4 The additional funding for Dunoon Public Realm will supplement the wider programme of works which are currently being negotiated with the UK Government as part of their Community Regeneration Partnership Funding. This includes an indicative funding allocation of £1.08m for Dunoon. Priority areas for action are Argyll Gardens and the fire damaged gap site on Argyll Street. Some of this funding will also be used to support local business owners to address the high number of vacant commercial properties in
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Dunoon Town Centre. The Council are currently working with an architect to prepare outline designs for Argyll Gardens and the gap site on Argyll Street. Further updates will be brought back to the P&R Committee and local Area Committee in due course. 4.3 COWAL AIRES PROJECT 4.3.1 In October 2023 the Policy and Resources Committee allocated £100,000 to deliver a scheme at the West Bay in Dunoon to create an aires style facility for motorhomes. A review took place in 2025 when it became clear the initial proposal was not viable. 4.3.2 Further scoping work has been undertaken to identify alternative locations for an Aires facility within Bute and Cowal. The project has been strategically redesigned and takes cognisance of the emerging best practice in rural motorhome provision. This project has been renamed the Cowal Aires Project, and it is now considered to be simpler, smarter and more sustainable. 4.3.3 The proposed scheme has been redesigned with simplicity and practicality in mind. It includes: • Installation of 10 hardstanding bays, staggered to enhance privacy between vehicles at Tor Aluinn, Bullwood in Dunoon. • Ground preparation involving the scraping back of the existing earth, installation of Teram geotextile membrane, followed by a base layer of crusher run, then a top course comprising Type 1 (road planings), compacted to a durable finish. • Enhancement of the picnic area through the provision of 10 new picnic benches, each accessible for wheelchair users and designed with integrated BBQ sections to support informal, family-friendly use of the site. • Directional signage and QR-code-based visitor guidance to enable self- managed, app-based payment and responsible use. • Phase 2 with electrical hook up and wastewater disposal site 4.3.4 Members are asked to agree to varying the use of previously allocated £100,000 Crown Estate funding to focus on the delivery of the proposed Cowal Aires Project. 4.4 KINTYRE SEA SPORTS 4.4.1 At the February 2025 meeting of the Policy and Resources Committee, members approved £200k of the Council’s Crown Estates funding to support initial phases of the Kintyre Sea Sports project. Crown Estates funding was approved to “support the demolition of existing pavilion building and temporary accommodation to enable material start to be made in advance of RGD approvals. This project has a strong focus on marine training and community wealth building.”
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4.4.2 It was previously considered that Crown Estates funding would be used to facilitate demolition of the existing Campbeltown Sailing Club building to enable a material start to be made on site in advance of the expiration of the existing planning approval in August 2025. Following discussions with officers from the Council’s Planning Team, it has been established that removal of the boundary wall and installation of fencing and gates will be sufficient to constitute a material start to the project. 4.4.3 Figure 1 below, details the proposed Kintyre Sea Sports foreshore area that will be redeveloped using Crown Estates funding. It should be noted that this is subject to securing the necessary statutory consents. Figure 1: Proposed Area of Foreshore reinstatement works 4.4.4 Supporting the continued growth of KSS will be a key requirement of the project Full Business Case and will be necessary to demonstrate sustainability of the organisation considering the capital investment proposed via the RGD. From experience with RGD business cases to date, it can be challenging for community and public sector led projects to meet the necessary criteria of the Treasury 5 business cases around operational sustainability. 4.4.5 A summary of the estimated costs associated with the works detailed in this report are included in Table 2. Members are asked to note that some of these costs are based on design team estimates and final tendered costs may vary. It is considered that all these activities can be delivered within the £200k budget available however, in the event of cost escalation some activities may require to be moved into later phases of the project.
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Table 2: Key Project Activities to be funded from Crown Estates Project Costs Gross Value Material Start on Site Following discussions with officers from the Council’s Planning Team, it has been established that removal of the boundary wall and installation of fencing and gates will be sufficient to constitute a material start to the project. £9,000 Works to Foreshore It is now proposed that Crown Estates funding be used to ensure a material start on site and focus on the delivery of shore side infrastructure which will support the operations of KSS and Campbeltown Sailing Club. Shore side works will create a larger boat storage area and enhancements to the current slipway. The works will also require land reclaim and rock armour which will provide enhanced flood defences in this area. Redevelopment of the foreshore will also provide the potential for this area to be used as a site compound by contractors during the construction phase of the new facility. This is significant as the Campbeltown Sailing Club site has limited space which will make a site compound difficult to accommodate without using the shoreside area. £150,000 Surveys To facilitate demolition of the existing facility and the subsequent construction phases there will be the requirement for further survey work including asbestos and drainage surveys. It is proposed to use Crown Estates funding to meet the costs associated with this work. £5,000 Statutory Application Fees and Connections The redevelopment of the foreshore area will require statutory consents including planning, building warrant and a marine licence. There will also be costs associated with service connections including electricity, water and drainage. £21,000 Consultancy support It is also anticipated that there will be legal fees associated with the transfer of ownership of the sailing club site from Campbeltown Sailing Club to KSS following endorsement of the RGD FBC. It is proposed that these fees will be paid using Crown Estates funding however, it should be noted that costs associated with this still require to be confirmed. Legal fees are also eligible expenditure for other funds such as the RGD should this be necessary. It is proposed to commission consultancy support to develop robust communications, media and branding support for KSS. This will help to establish a clear view of the contribution and value of the project for existing stakeholders and new funders, describe the value of the new facilities to £15,000
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the community and wider maritime industry and help facilitate the transition to the new facilities by securing the co- operation of key commercial partners and stakeholders. Total £200,000 5.0 CONCLUSION 5.1 Crown Estate funding enables projects to be delivered that support our coastal communities, build on investment already in place and act as a driver for community wealth building and wider economic development in the area. The new projects all meet the necessary funding criteria and are considered deliverable within the 2025/26 financial year. Several of the projects also build on investment already in place and will support projects being delivered through other place- based work such as Conservation Area Regeneration Schemes and Heritage and Place Programmes. 5.2 The Building Aires style project in Dunoon has been strategically reformed and takes cognisance of the emerging best practice in rural motorhome provision. This project has been renamed the Cowal Aires Project, and it is now considered to be simpler, smarter more sustainable. 5.3 The KSS project is part of the Rural Growth Deal programme which will invest up to £2 million of funding from the Scottish and UK Governments to create a new water ports hub on Campbeltown Loch. Members previously approved £200k of the Council’s Crown Estates funding to support initial phases of this project however the original purpose of the allocated funds has changed significantly. Members are asked to agree that this funding will now support measures necessary to ensure a material start on site and progress other key project activities. In particular, this funding will also support later phases of the project which will be delivered following approval of the project FBC by both Governments. 6.0 IMPLICATIONS 6.1 Policy: The expectation is that Local Authorities would use the funding for additional expenditure that specifically benefits coastal communities, with individual authorities making decisions on funding of projects to benefit coastal communities and being transparent and accountable to their communities and other for expenditure. 6.2 Financial: Grant funding is provided for all projects identified. 6.3 Legal: The Transformational Projects and Regeneration Team will ensure that all funds committed are compliant with grant funding conditions. 6.4 HR: Resourced from existing staff. 6.5 Customer Service: None.
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6.6 Risk: The projects are continually monitored to ensure that funds can be spent and that the projects meet the criteria as set out by Scottish Government. 6.7 Climate Change: Funds can support activities which promote the drive towards net zero. 6.8 Fairer Scotland Duty: The Fund supports our coastal communities. Socio- economic duty – Campbeltown has areas of deprivation and enhancing opportunities for local people has been a driving principal of KSS to date, in particular the partnership with Campbeltown Grammar School. 6.9 Equalities – protected characteristics: The KSS project could enhance opportunities for all ages and abilities to partake in marine leisure and training activities. 6.10 Consumer Duty: None. 6.11 Island Communities: The Fund supports coastal communities and has the potential to align with and add value to other funding programmes such as the Islands Programme, PBIP and RCGF. 6.12 Children’s Rights and Wellbeing: The KSS project will improve outcomes for local children as demonstrated by the highly successful partnership with Campbeltown Grammar School. KSS has introduced more than 120 Campbeltown Grammar School pupils to sailing, with 56 achieving internationally recognised sail- and powerboat qualifications. This in a school with 360 pupils, of whom more than 10% are Registered Young Carers. Kirsty Flanagan, Executive Director with responsibility for Development and Economic Growth Fergus Murray, Head of Development and Economic Growth Councillor Jim Lynch, Policy Lead for Economic Development, Islands and Rural Communities and Housing 1 July 2025 For further information contact: Fergus Murray - Head of Development and Economic Growth fergus.murray@argyll-bute.gov.uk Jonathan Welch - Transformation Projects and Regeneration Manager jonathan.welch@argyll-bute.gov.uk