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Community Regeneration Partnership Funding

Argyll and Bute Council · 20 February 2025
Back to Policy and Resources Committee — 20 February 2025 and its agenda

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ARGYLL AND BUTE COUNCIL                  POLICY AND RESOURCES COMMITTEE 
DEVELOPMENT AND ECONOMIC GROWTH        20 FEBRUARY 2025 
COMMUNITY REGENERATION PARTNERSHIP FUNDING 
1.0 INTRODUCTION 
1.1 In the 2024 Autumn Statement the UK Government committed to delivering a
package of support to Argyll and Bute Council in order to improve outcomes
across the region in line with the Government’s core missions and priorities. 
Community Regeneration Partnership Funding (CRP) will build upon previous
work and engagement undertaken by the Ministry of Housing, Communities
and Local Government (MHCLG) under the banner of Levelling Up.  This
report provides members with an update on the financial package, how
funding will be delivered, and important considerations for the development of
priority projects. 
1.2 As part of the core funding package, there is up to £20m capital funding and
£250k revenue available for the CRP. Funding is profiled for payment in
financial year 2026-27 and is subject to business case approvals. A further
capacity payment of £45k will be provided to support dedicated resources to
the process. This will be paid in FY25-26 and follows a separate capacity
payment which was transferred at the beginning of FY24-25.  A funding
summary is included in Table 1 below:- 
Table 1: CRP Funding Summary 
£m  24-25  (Funding
already delivered
under LUP banner)
25-26  26-27 Total 
Capital Funding -  - 20  20 
Revenue Funding 0.045  0.045 0.25 0.34 
Totals 0.045  0.045 20.25  20.34 
1.3 Capacity funding totalling £90k will be used to support staff resources
delivering administration and financial support to this programme.  This
resource will be managed by the Transformation Projects and Regeneration
Team within Development and Economic Growth.

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1.4 The principal partnership of the CRP in Argyll and Bute is between the local
authority and MHCLG. The Scottish Government’s Regeneration Unit will also
be working in collaboration with key stakeholders to shape the CRP in line
with UKG, SG and Council policy priorities.  It should however be noted that
MHCLG ministers will make the final decisions on all funding proposals. 
1.5 A summary of the key CRP milestones and anticipated deadlines is set out
below:- 
• Draft MoU to be shared with Council January 25;
• UKG to commence desk based research w/c 6th January;
• Weekly calls with Council to be arranged from w/c 6th January;
• Fieldwork / visits – w/c 10th February;
• Report back on initial findings – w/c 3rd March;
• Announcement on projects – w/c 14th April. 
1.6 The Council previously agreed a list of priority projects to put forward for
Levelling Up Partnership Funding prior to the UK General Election in June. 
The Council have now been asked by MHCLG to identify 5 priority projects to
put forward for potential funding via the CRP.  A draft list of priority projects
and estimated funding values is set out in Appendix 1 and it is proposed that
this list will form the basis of negotiations with UKG for CRP funding.   
1.7 It should be noted that these projects can only be regarded as suggestions by
the council as MHCLG Ministers will make the final decisions on all projects to
be awarded funding. 
2.0 RECOMMENDATIONS 
2.1 Members are asked to: 
a) Approve the updated list of priority projects included in Appendix 1, which
will form the basis of further negotiations with the UK and Scottish
Governments. 
b) Note that all funding requires to be committed by FY 26/27 and will be
subject to business case approvals by MHCLG Ministers. 
3.0 DETAIL 
3.1 In the 2024 Autumn Statement the UK Government committed to delivering a
package of support to Argyll and Bute Council in order to improve outcomes
across the region in line with the Government’s core missions and priorities. 
Community Regeneration Partnership Funding (CRP) will build upon previous
work and engagement undertaken by the Ministry of Housing, Communities
and Local Government (MHCLG) under the banner of Levelling Up.  This
report provides members with an update on the financial package, how

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funding will be delivered, and important considerations for the development of
priority projects.   
3.2 The scope of the CRP funding is primarily driven by the UK Government’s 5
stated missions:- 
• Kick-starting economic growth
• Making Britain a clean energy superpower
• Take back our streets
• Break down barriers to opportunity
• Build an NHS fit for the future 
3.3 The UKG will also work in collaboration with the Scottish Government’s
Regeneration Unit to shape the CRP in line with SG missions. Final decision-
making will ultimately lie with MHCLG ministerial team. The UKG have
advised that they will consider all opportunities on their merits and that
ministers will prioritise investments that deliver tangible, specific outputs from
the CRP funding rather than topping up larger projects delivered through other
streams. 
3.4 As part of the core funding package, there is up to £20m capital funding and
£250k revenue available for the CRP. Funding is profiled for payment in
financial year 2026-27 and is subject to business case approvals. A further
capacity payment of £45k will be provided to support dedicated resources to
the process. This will be paid in FY25-26 and follows a separate capacity
payment which was transferred at the beginning of FY24-25.   
3.5 Capacity funding totalling £90k will be used to support staff resources
delivering administration and financial support to this programme.  The
Transformation Projects and Regeneration Team within Development and
Economic Growth will manage this resource.   
3.6 The principal partnership of the CRP in Argyll and Bute is between the local
authority and MHCLG. The Scottish Government’s Regeneration Unit will be
working in collaboration with MHCLG and the LA to shape the CRP in line
with UKG, SG missions and the local context. Issues, opportunities and
interventions will be identified / agreed collaboratively. MHCLG ministers will
make the final decisions on all funding proposals. 
3.7 Once particular projects and support has been agreed in principle, MHCLG
will require Argyll and Bute Council to provide details of our internal
governance processes and project specific detail on delivery, value for
money, key measurable benefits, risks and mitigations, compliance with the
subsidy control regime and equalities implications.  The Council will require to
complete template forms for each project listing relevant information. These
will then help inform MHCLG's internal business case – a single business
case developed by the CRPs team which when cleared within MHCLG
structures will unlock payment to Argyll and Bute Council.

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3.8 Subject to business case approval, grants will be given as a direct award to
Partnerships on an allocative basis. General grants will be directly awarded to
each partnership. Grant recipients will primarily be local authorities.  Funding
will be delivered through non-ringfenced Section 50 grants via the UK Internal
Market Act. These grants will be administered by Argyll and Bute Council in
line with the terms of its existing procurement, delivery and governance
structures and constitutional arrangements.   
3.9 A Memoranda of Understanding (MoU) will require to be signed by both
parties. The MoU will set out how MHCLG expect local authorities to spend
the funding provided and how to monitor delivery. A Grant Determination
Letter will be issued once funding has been released. 
Change Control 
3.10 MHCLG will take a pragmatic approach to project adjustment, where changes
to agreed interventions need to be made. Local authorities must outline the
change, explain the reasoning, and provide formal Section 95 officer
approval.  Changes to the agreed package will be permitted under the
following circumstances: 
A. If the local authority can demonstrate to the CRPs team that the funding
would achieve the same aim as another project agreed as part of the
package i.e. if an aim of the original package was aimed at boosting
housing numbers, a new project could be funded from the CRP package if
it also aims to boost housing numbers; and/or, 
B. If the project is an alternative option from the menu of interventions
developed through the partnership and agreed with Ministers; and, 
C. Any new project would meet the three criteria, which each policy needed
to in order to be included in the package originally. These are: 
i. Feasibility/deliverability. 
ii. Value for money. 
iii. Local Strategic Fit. 
3.11 Changes in line with the above must be notified in advance to MHCLG
officials, who in turn will notify Ministers through a streamlined approval
process. Funding an intervention that does not meet the above scenarios
would require a full business case and MHCLG Ministerial approval, MHCLG
officials will again take a streamlined approach to securing Ministerial
approval. Scottish Government priorities and input will also be taken into
consideration 
Delivery and monitoring arrangements 
3.12 Argyll and Bute Council will be responsible for implementation and will be
expected to complete a fraud risk assessment as well as maintain and
monitor a risk register.  Where interventions are being delivered by local
authorities, MHCLG will work with them to agree what milestones should be
set on the package as a means of monitoring progress and to ensure projects

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are being delivered to schedule. There will be a minimum expectation of a
quarterly check point between MHCLG and Argyll and Bute Council on
progress and learning for the first year and then move to six monthly reviews. 
3.13 Further detail of delivery and monitoring arrangements will be set out in the
MoU between MHCLG and Argyll and Bute Council. 
3.14 MHCLG will prioritise projects that can spend funds within the financial year in
which payments are received. In order for the MHCLG Accounting Officer to
be able to sign-off on grant funding to local authorities, they will need
assurance from the Section 95 officer at the local authority that if they were to
receive funds they would be spent by the end of each relevant financial year. 
4.0 Next Steps 
4.1 MHCLG We are currently finalising plans internally, however they have
advised that they anticipate their work to broadly follow the key stages set out
below:- 
• Scoping phase (December-January TBC): MHCLG will be gathering
evidence through desk based research – as well as reviewing information
from their analytical team and input from the Scottish Government. This, along
with local conversations will provide an initial view of the opportunities and
challenges in Argyll and Bute in line with the priorities of all parties. 
• Fieldwork phase (January-February TBC) – A series of in person
conversations with stakeholders on the opportunities and challenges in Argyll
and Bute and (in some cases) potential suggestions for solutions. Where
necessary, supplemented with further remote meetings. 
• Policy development phase (February-March TBC) During this phase
MHCLG will develop policy recommendations on an iterative basis with Local
Authorities.  They will take the scoping research and fieldwork findings and
give their own suggestions as well as considering suggestions for projects
from the Council and local stakeholders. At this stage Ministers will also be
asked to take a view on developing priorities.   
• Final package agreed (April 2025): The final package will be finalised by
early April. MHCLG will continue to work with the Council to refine it, through
March and early April before Ministers make a final decision. 
• Business case development phase: (timings TBC): MHCLG will seek input
to develop internal business case, which will cover all agreed projects. Once
the business case is completed and signed off through internal MHCLG
structures arrangements will be made for funding to be released as per the
agreed financial profile. 
4.2 The Council previously agreed a list of priority projects to put forward for
Levelling Up Partnership Funding prior to the UK General Election in June. 
The Council have now been asked by MHCLG to identify 5 priority projects to

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put forward for potential funding via the CRP.  A draft list of priority projects
and estimated funding values is set out in Appendix 1 and it is proposed that
this list will form the basis of negotiations with UKG for CRP funding.   
4.3 It should be noted that the projects identified in Appendix 1 are considered to
be deliverable within a relatively short timetable and have clear demonstrable
outcomes which is also a key requirement of this process.   
4.4 Projects funded by CRP monies require to be approved by UKG Ministers and
as such, there is no guarantee that any project ideas submitted by the council
will be selected.  All projects will be subject to detailed business case
development by the UK Government with council inputs as appropriate.  Other
projects may also emerge at the discretion of the UK Government following
consultation with local stakeholders.   
4.5 It should be further noted that removing barriers to economic growth is still an
aim of the UK Government working in collaboration with the Scottish
Government.  Consequently, this will be explored further during discussions
with the civil servants in the coming weeks.   
5.0 CONCLUSION 
5.1  The UK Government have committed to delivering a package of support to
Argyll and Bute Council totalling £20.34m via the Community Regeneration
Partnership. 
5.2 The Council have now been asked by MHCLG to identify 5 priority projects to
put forward for potential funding via the CRP.  A draft list of priority projects
and estimated funding values is set out in Appendix 1 and it is proposed that
this list will form the basis of negotiations with UKG for CRP funding.   
5.3 It is currently anticipated that the final package will be confirmed in early April
2025 and MHCLG Ministers will make the final decision. 
5.4 It should be noted that any project ideas submitted by the council to the UK
Government have no guarantee of being selected and are all subject to
detailed business case development by the UK Government with council
inputs as appropriate.  Other projects may also emerge at the discretion of the
UK Government following consultation with local stakeholders.   
5.0 IMPLICATIONS
5.1 Policy – The Community Regeneration Partnership funding has the potential to
support a number of council priorities included in the Single Outcome
Agreement (SOA) and Economic Development Strategy and Action Plan
support the sustainable growth of our economy.

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5.2 Financial – The Council have identified 5 priority projects which will form the
basis of negotiations with the UKG around the allocation of £20.34m of grant
funding via the Community Regeneration Partnership.
5.3  Legal – Legal will require early sight of draft MoU and funding conditions. 
5.4  HR – None arising from this report.
5.5  Fairer Scotland Duty: 
5.5.1  Equalities - the report explains a process that can help support the
economy of our areas generating employment opportunities. 
5.5.2  Socio- Economic Duty – the projects identified will enhance outcomes
for those experiencing socio-economic disadvantages. 
5.5.3  Islands – projects have been identified on our islands for member’s
consideration.
5.6 Climate Change – Each project will require to have regard to climate change
implications. 
5.7 Risk – Our rural economy is fragile and failing to deliver this external investment
would be a considerable concern.
5.8 Customer Service – No specific implications, but all projects identified will
impact positively on our customers / communities.
5.9 Rights of the Child (UNCRC) – No implications arising from this report. 
Councillor Jim Lynch, Policy Lead for Economic Development, Islands and
Rural Communities, Housing 
For further information contact: 
Fergus Murray, Head of Development and Economic Growth 
Fergus.Murray@argyll-bute.gov.uk 
January 2025 
Kirsty Flanagan, Executive Director with responsibility for Development and
Economic Growth

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Appendix 1: CRP Priority Projects 
Project
Title
What is it?   Likely Ask? Status Link to Labour
Manifesto
Oban
Airport
Aviation
Business
Park
To contribute to the construction of
2 key buildings that form part of
phase 2 of the Oban
Airport  Business Park.  Two private
sector businesses have signed
Heads of Terms to occupy the
buildings and the project also
complements the proposed UAV
hub funded through RGD.
£7.4m
matching TIF
funding;
prudential
borrowing
and RGD
UAV Hub
£4m.  Costs
based on
verified
Contractor
estimates and
tendered
costs due in
March 2025.
Land in
control;
business case
work partly
completed
and detailed
planning
consent for
two buildings
including UAV
Hub. 
Supporting
Scotland’s
Economic
Growth through
innovation
Former
Royal
Hotel
Rothesay,
Bute
To remove dereliction and restore a
valuable heritage building in a
prominent position in Rothesay
town centre on the island of Bute;
To create through a public/private
sector partnership new list
accessible homes including key
worker housing; tourist
accommodation and commercial
space. 
£3.5m
matched by
potential
private
finance/ £1m
from Strategic
Housing
Fund, HIE
possible and
Historic
Environment
Scotland.
New Non
Profit Trust
created;
Condition and
Cost Estimate
report
completed;
layout
drawings
commissioned
Supporting
Scotland’s
Economic
Growth;
Housing
delivery and
supporting
communities
through
removing
dereliction
European
Marine
Science
Site Phase
2
This is a key strategic priority
project for HIE. The strategic vision
for the development is here:
240117-emsp-the-vision.pdf
(europeanmarinesciencepark.co.uk)  
The development of Camas House,
the second business
office/laboratory development on
the site specifically developed to
support business growth in the
marine economy.  This will directly
support boosting productivity, local
pay, jobs and living standards by
growing the private sector. This
project complements SAMs with the
£1.6m to fit
out floor of
EMSP
matched by
£8m from HIE
Full Planning
consent
granted with
building on
site at this
time; proposal
relates to
fitting out of
one floor
which has not
been included
in tender. HIE
have already
invested in
excess of
£8m into this
project.
Supporting
Scotland’s
Economic
Growth through
innovation

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building acting as an incubator for
blue economy businesses.  
Affordable
Housing
For Key
Workers
Adding scale to our work
associated with the Housing
Emergency to build affordable
housing for key workers on a
number of sites across Argyll and
Bute. Argyll and Bute was the first
council in Scotland to declare a
housing emergency with a lack of
key worker housing a critical issue
for the future of our area.
£5m adds to
£3.7m
RGD/Island
Infrastructure
fund and
other works
we are taking
forward on
our islands
including Islay
and Mull.
Scaling up
impact of
RGD Key
Worker
Housing
Initiative
Supporting
Scotland’s
Economic
Growth through
provision of key
worker housing     
SME
Business
Units 
Work in partnership with HIE and
Scottish Enterprise to establish a
number of business units targeted
at local SMEs.  Units will be
constructed within local business
park sites and/or in locations where
a shortage of commercial space
has been identified across Argyll
and Bute.  This project will support
new and existing SMEs to establish
and grow across Argyll and Bute
and will potentially result in
increased NDR/lease revenues for
the Council, which can be re-
invested to support initiatives
targeted at business growth. 
£2.5m 
Synergies
with existing
investments
being
delivered via
RGD, and
projects such
as Oban
Airport
Business
Park and
Kilmory
Phase 2,
EMSP and
Colgrain.
Opportunity to
work with key
partners to
add value to
existing
investments
at strategic
business sites
across Argyll
and Bute.
Kick starting
local economic
growth by
addressing lack
of capacity in
rural
commercial
accommodation.
Breaking down
barriers to
employment by
providing
opportunities for
rural businesses
to grow and
flourish.