Place Based Investment 2025/26 - Place Based Investment Projects and Allocation & Crown Estate 2025/26 - Update
Argyll and Bute Council · 8 May 2025
Back to Policy and Resources Committee — 8 May 2025 and its agenda
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 8 MAY 2025 PLACE BASED INVESTMENT 2025/26 – PBI PROJECTS AND ALLOCATION CROWN ESTATE 2025/26 – UPDATE 1.0 EXECUTIVE SUMMARY 1.1 The Scottish Government have indicated that Argyll and Bute Council will be allocated funding of £496,000 for financial year 2025/26 from its Place Based Investment (PBI) Programme. It should be noted that at the time of writing this report formal confirmation of funding has yet to be received from the Scottish Government. The purpose of this report is to seek members formal approval for the projects to be supported via this year’s PBI funding allocations as detailed in Table 1. 1.2 This report follows on from the email communication to all Elected members from the Executive Director with responsibility for Development and Economic Growth suggesting projects that could be funded by PBI and seeking members views on these and other suggestions which would fit within the funds criteria and timeline. 1.3 It should be noted, that no formal funding commitment will be made until such time as the PBI budget for 2025/26 is confirmed in writing by the Scottish Government 1.4 The report also highlights that members will require to give consideration to the Crown Estate (CE) funding for 2025/26. Whilst the Council has not yet been advised of the formal allocation 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. 1.5 A further report on the proposed allocation of the Crown Estate Funding for 2025/26 will be brought forward to the 21st August meeting of the Policy and Resources Committee to allow sufficient time for third party projects submitted on the Council’s Aspiring Places Portal to be considered for potential funding in an open and transparent manner.
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1.6 The approach being taken reflects the decision taken at the Policy and Resources Committee in August 2022 whereby it was agreed that suggestions for future years of Placed Based Investment and Crown Estates funding were welcomed from all Elected Members, and that it would be beneficial for any future options to be discussed by Elected Members in advance of confirmation of these funds. 1.7 The Executive Director with responsibility for Development and Economic Growth has written to all Councillors seeking suggestions for potential projects which would fit within the CE funding criteria and timelines. At the time of writing this report, project proposals have been received from 4 elected members. RECOMMENDATIONS It is recommended that Policy and Resources Committee: a) Consider and agree to the allocation of the Place Based Investment funding for 2025/26 to the projects in Table 1, paragraph 4.6 subject to confirmation of funding. b) Note that Transformation Projects and Regeneration Team will liaise with colleagues on the Aspiring Places project to determine potential third party projects to be considered for Crown Estates funding. c) Note that, following consultation with all elected members and key stakeholders, a further report on the proposed allocation of the Crown Estate Funding for 2025/26 will be brought to the 21st August meeting of the Policy and Resources Committee.
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ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 8 MAY 2025 PLACE BASED INVESTMENT 2025/26 – PBI PROJECTS AND ALLOCATION CROWN ESTATE 2025/26 – UPDATE 2.0 INTRODUCTION 2.1 The Scottish Government have indicated that Argyll and Bute Council will be allocated funding of £496,000 for financial year 2025/26 from its Place Based Investment (PBI) Programme. It should be noted that at the time of writing this report formal confirmation of funding has yet to be received from the Scottish Government. 2.2 The purpose of this report to ask members to agree in principle to the allocation of Argyll and Bute Place Based Investment (PBI) for 2025/26 as detailed in Table 1. It should be noted, that no formal funding commitment will be made until such time as the PBI budget for 2025/26 is confirmed in writing by the Scottish Government. 2.3 The projects proposed are considered to fit strongly with the PBI criteria and deliver on the Council’s economic development priorities. All of the projects suggested will add value to investment that has already been made by the Council, deliver on our regeneration outcomes for our places, take account of available officer resources and are deemed to be deliverable within the 2025/26 financial year (a key requirement of the funding). 2.4 The purpose of this report is also to highlight to members that consideration will also need to be given to Crown Estate (CE) funding that is expected within 2025/26. Although the CE allocation for 2025/26 is not yet confirmed, in previous years it has been recommended that the Council could commit up to £0.8m of anticipated funding in advance of formal notification and this would again be recommended for 2025/26. 2.5 In order to advance this process and as agreed at the Policy and Resources Committee in August 2022, the Executive Director with responsibility for Development and Economic Growth has written to all Councillors seeking suggestions for potential projects which would fit within the CE funding criteria and timelines. At the time of writing this report, project proposals have been received from 4 elected members.
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2.6 A report will be brought back to the August meeting of the Policy and Resources Committee for formal approval of the proposed projects for 2025/26 CE funding. This is to allow sufficient time for third party projects submitted on the Council’s Aspiring Places Portal to be considered for potential funding in an open and transparent manner. Members are asked to note that this is a requirement of subsidy control legislation. 3.0 RECOMMENDATIONS 3.1 It is recommended that Policy and Resources Committee: a) Consider and agree to the allocation of the Place Based Investment funding for 2025/26 to the projects in Table 1, paragraph 4.6 subject to confirmation of funding. b) Note that Transformation Projects and Regeneration Team will liaise with colleagues on the Aspiring Places project to determine potential third party projects to be considered for Crown Estates funding c) Note that, following consultation with all elected members and key stakeholders, a further report on the proposed allocation of the Crown Estate Funding for 2025/26 will be brought to the 21st August meeting of the Policy and Resources Committee. 4.0 DETAIL 4.1 The 2020 Programme for Government committed to establishing a Place Based Investment Programme (PBIP), linking and aligning place-based funding initiatives. The Scottish Government confirmed that Local Authorities would receive a share of the PBIP funding over a 5-year period, including the initial year 2021/22, to support and advance place-based investment and build on the strong partnership currently existing through the Regeneration Capital Grant Fund. 4.2 Argyll and Bute Council’s allocation for year 1 (2021/22) was £821,000. The Council’s allocations for year (2022/23) was £714,000. The allocation for 2023/24 was £496,000. No PBIP allocation was made in 2024/25 due to budget pressures. The allocation for 2025/26 is anticipated to be £496,000 although the Council are awaiting formal confirmation from the Scottish Government. 4.3 The main objectives of the PBIP are: • to link and align place-based initiatives, and establish a coherent local framework to implement the Place Principle.
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• to support place policy ambitions such as town centre revitalisation, community led regeneration, 20 minute neighbourhoods and Community Wealth Building; • to ensure that all place-based investments are shaped by the needs and aspirations of local communities; and, • to accelerate our ambitions for net zero, wellbeing and inclusive economic development, tackling inequality and disadvantage, community involvement and ownership. 4.4 The challenge in respect of the fund is to identify projects that meet the place- based criteria, and are able to be delivered within the financial year in which funding is awarded taking cognisance of limited staff resources. Projects to be delivered under the 2025/26 allocation need to be delivered in a 9 month period and therefore need to be sufficiently well advanced in terms of their development. The Council will also require to be content that any third party projects can be delivered on time, satisfy any subsidy control requirements, and meet the funding criteria set out above. 4.5 As with previous year’s PBI funding, the focus for this year’s programme is on projects that are at delivery stage and can be completed in financial year 2025/26. The projects need to fit with the PBIP criteria, have the ability to build on previous investments, and require the resources to be in place to ensure delivery within the timescales required by the Scottish Government. 4.6 The projects identified in Table 1 have been selected based on their strong fit with PBI funding criteria and all are considered deliverable in the 2025/26 financial year. Table 1 Place Based Investment 2025/26 Allocation Project Consideration Fit with Criteria 2025/26 Place Based Investment Albert Pier – regeneration works to formalise parking arrangements and provide dedicated facilities for visiting coaches. Project represents next phase of works following proposed demolition of vacant property on Albert Pier using Crown Estates funding. Strong fit with PBI – adds value to previous works, deliverable within 2025/26. £100,000 Victoria Hall, Campbeltown – repair and refurbish entire front elevation on prominent town centre building. Adds value to previous town centre regeneration activities funded via CARS. Strong fit with PBI – builds on previous funding secured, council project, deliverable within time frame. £100,000
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Shopfront and business support - flexible fund to support businesses with capital improvements to shopfronts/buildings supporting previous regeneration investment. Project can deliver town centre enhancements across Argyll and Bute. Strong fit with PBI – adds value to existing funding secured, deliverable within time frame, resources and expertise in place to deliver these works. £56,000 CCTV – upgrade to CCTV in town centres. Long standing aspiration to upgrade town centre CCTV. Partnership project with Police Scotland and strong community safety focus. Deliverable within time frame with resources in place. This will be a capital only investment subject to agreement with Police Scotland. Up to £100,000 Helensburgh Outdoor Museum - commission artist/arts organisation to deliver community engagement and to further develop the Outdoor Museum as a heritage-led attraction for Helensburgh. This will deliver further artworks increasing the potential for the outdoor museum to act as a key tourist attraction for Helensburgh. Strong fit with PBI, adds value to existing projects, deliverable within time frame, resources in place. £80,000 Rockfield Centre Oban- Outdoor Works Phase 2. Enhancements to external space including improved car park and installation of EV charging facilities. Provides enhanced events space and assists with on-going operational costs helping to make this key town centre facility more sustainable by increasing the potential for revenue generation. Strong fit with PBI, adds value to previous funding secured, deliverable within time frame. £60,000 TOTALS £496,000 4.9 The projects identified above all meet the funding criteria for the PBI programme and all are considered to be deliverable within the 2025/26 financial year. It should however be noted, that capital projects are becoming more challenging to deliver and as such, an element of flexibility may be required if it becomes evident that projects are no longer viable.
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5.0 CONCLUSION 5.1 The relatively tight timescales associated with the PBI fund, combined with the large number of existing projects being delivered by the council, make for a challenging place based investment programme. The projects identified above all meet the funding criteria for the PBI programme and are considered deliverable within the 2025/26 financial year. These projects also build on investment already in place in our town centres and will support projects being delivered through other place-based work such as the Lochgilphead and Helensburgh CARS. Note that a further report on the proposed allocation of the Crown Estate Funding for 2025/26 will be brought forward to the 21st August meeting of the Policy and Resources Committee to allow sufficient time for third party projects submitted on the Council’s Aspiring Places Portal to be considered for potential funding in an open and transparent manner. 6.0 IMPLICATIONS 6.1 Policy - There is a need to comply with the Scottish Government ‘place’ policies as outlined in paragraph 4.3 and associated guidance for the Fund. 6.2 Financial - The Scottish Government expect that any uncommitted funds by 31st March 2026 will be returned to Scottish Government. 6.3 Legal – Projects must be delivered in line with Central Government funding criteria. This includes compliance with subsidy control and policies such as Fair Work. 6.4 HR – Projects will be delivered from existing staff resources in partnership and funding will be managed by the Transformational Projects and Regeneration Team within DEG. 6.5 Fairer Scotland Duty: 6.5.1 Equalities - protected characteristics - None 6.5.2 Socio-economic Duty - The Fund will support local economies through place-based centre regeneration activity. 6.5.3 Islands - The Fund will support island economies through place-based regeneration activity and has the potential to align with, and add value to, the Islands Programme. 6.6 Climate Change – Management of whole life carbon emissions will be factored into projects. 6.7 Risk - In order for each project to progress to delivery stage, a fully let contract must be in place by 31st March 2026. The projects will be continually monitored to ensure that funds can be reallocated to another Place Based Investment Fund project to avoid having to return any uncommitted funds to Scottish Government at this time.
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6.8 Customer Service – None. 6.9 The Rights of the Child (UNCRC) – 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 7th April 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