Crown Estates Funding Allocation 2025/26
Argyll and Bute Council · 20 February 2025
Back to Policy and Resources Committee — 20 February 2025 and its agenda
Text extracted from the council's PDF. Layout and reading order may differ from the original.
Page 1
ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 20 FEBRUARY 2025 CROWN ESTATES FUNDING ALLOCATION 2025/26 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 The council’s allocation for this financial year (2024/25) is £1,818,714.93. The formal notification of the allocation was not received until 11 December 2024. The allocation is the Council’s share of the total net revenue generated in 2022- 23 but which is distributed in 2024-25. 1.4 The Council have previously agreed to allocate £780,000 to mitigate weather related costs, £500,000 to balance the 2024-25 budget and a further £107,000 to fund posts within Economic Development. Taking existing funding commitments into account, the remaining budget for 2024/25 currently stands at £431,714.93. 1.5 Members are asked to consider proposals set out in Table 1 and approve the priority projects for the remaining Crown Estates budget allocated in the 2024/25 financial year. 1.6 The recommendations are: • Members are asked to consider and approve time sensitive proposals set out in Table 1 for the remaining Crown Estates budget allocated in the 2024/25 financial year.
Page 2
• Members are asked to note that a further report will be brought back to the Policy and Resources Committee identifying priority projects for the 2025/26 Crown Estates funding allocation.
Page 3
ARGYLL AND BUTE COUNCIL POLICY AND RESOURCES COMMITTEE DEVELOPMENT AND ECONOMIC GROWTH 20 FEBRUARY 2025 CROWN ESTATES FUNDING ALLOCATION 2025/26 2.0 INTRODUCTION 2.1 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. 2.2 The council’s allocation for this financial year (2024/25) is £1,818,714.93. The formal notification of the allocation was not received until 11 December 2024. The allocation is the Council’s share of the total net revenue generated in 2022- 23 from marine licences but which is distributed in 2024-25. 2.3 The Council have previously agreed to allocate £780,000 to mitigate weather related costs, £500,000 to balance the 2024-25 budget and a further £107,000 to fund posts within Economic Development. Taking existing funding commitments into account, the remaining budget for 2024/25 currently stands at £431,714.93. 2.4 Agreement is sought from members to approve a number of time sensitive projects to utilise the remaining 24/25 funds. Further detail is included in Table 1 of this report. 2.5 A further report will be brought back to the Policy and Resources Committee identifying priority projects for the 2025/26 Crown Estates funding allocation. 3.0 RECOMMENDATIONS 3.1 Members are asked to consider and approve time sensitive proposals set out in Table 1 for the remaining Crown Estates budget allocated in the 2024/25 financial year. 3.2 Members are asked to note that a further report will be brought back to the Policy and Resources Committee identifying priority projects for the 2025/26 Crown Estates funding allocation.
Page 4
4.0 DETAIL 4.1 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. 4.2 The annual payment made to each relevant local authority is based on the distribution method agreed by the Settlement and Distribution Group (SDG). It remains Scottish Governments preference that the allocations should be used to deliver coastal community benefit. 4.3 The Crown Estate fund is targeted at the sustainability of coastal communities within the categories noted below and the Council has to advise how the funding is spent as part of the annual reporting requirements. Categories of expenditure are:- • Environment • Community • Climate Change. • Economic Development 4.4 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. 4.5 Where the funding is being provided as a grant a contract needs to be drawn up and issued and the grant and associated drawdown managed by officers of the council. 4.6 The Council’s allocation for this financial year (2024/25) is £1,818,714.93. The formal notification of the allocation was not received until 11 December 2024. The allocation is the Council’s share of the total net revenue generated in 2022-23 but which is distributed in 2024-25. 4.7 The Council have previously agreed to allocate £780,000 to mitigate weather related costs, £500,000 to balance the 2024-25 budget and a further £107,000 to fund posts within Economic Development. Taking existing funding commitments into account, the remaining budget for 2024/25 currently stands at £431,714.93. 4.8 Members are asked to consider proposals set out in Table 1 which identifies priority time sensitive projects for the remaining Crown Estates budget allocated in the 2024/25 financial year. Members are asked to note that all of these projects are considered to be deliverable in the 2024/25 Financial Year. 4.9 A summary of projects considered deliverable in 2024/25 is set out in Table 1
Page 5
below:- Table 1: Priority Projects – 2024/25 Crown Estates Fund Projects Lead Partner Crown Estate request Other funding Supporting Information Kintyre Seasports ABC / KSS £200K RGD Funding 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. Port Ellen Playing Fields - Community Hub & motorhome site SID / HIE £100k RCGF, PBI, HIE, RTIF On site now - to cover shortfall up to £300,000 - critical for completion. HIE also providing further match funding to meet this shortfall. Argyll Kayak Trail ABC £15k Will fund on-going operation and maintenance of this important tourist asset. Tarbert Heritage and Place Programme ABC £115K 2024/25 (£650k over 5 years) NHLF / HES Assists with bid to HES for a substantial investment in Tarbert heritage. Match funding for 5 year project. If an allocation was agreed from 2024/25 then this could sit within earmarked reserves until ready to draw down.
Page 6
4.10 The challenge in respect of the funding has always been to identify projects that meet the criteria, and are able to be delivered within short timeframes with our limited staff resources especially given the sheer number of projects that we are already involved in delivering. 4.11 Although the funding for 2025-26 hasn’t been advised yet, Members could consider allocating some of the anticipated funding in advance of the known grant level. As the level of grant for 2024-25 was £1.819m, it would be prudent to assume that we would receive at least £1.4m and allocate up to this level in advance of knowing the exact funding. Members are reminded that Council have already allocated £0.500m towards balancing the 2025-26 budget and also £0.107m towards post in economic development, which would leave circa £0.800m that could be allocated. A report will be brought back to the Policy and Resources Committee identifying priority projects for the 2025/26. 5.0 CONCLUSION 5.1 The need to ensure delivery and spend combined with the large number of existing projects being delivered by the council, make for a challenging environment. However there is no doubt that the Crown Estate funding has enabled more projects to be delivered that support our coastal communities, build on investment already in place as well as supporting new infrastructure investment supporting community wealth building and wider economic development of the area. 5.2 A number of priority, time sensitive projects have been identified for the remaining Crown Estates budget allocated in the 2024/25 financial year. 6.0 IMPLICATIONS 6.1 Policy – There is a need to comply with the Scottish Government guidance as outlined in the report. 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 –The Scottish Government expect that any funds will be committed and spent as quickly as possible. The Council will manage finances on projects identified for Crown Estates funding. 6.3 Legal – None. 6.4 HR – Resourced from existing staff and funding used to cover associated costs. 6.5 Fairer Scotland Duty:
Page 7
6.5.1 Equalities - protected characteristics – Funding can support projects that enhance equalities. 6.5.2 Socio-economic Duty – The fund supports coastal communities. 6.5.3 Islands - The Fund supports coastal communities and has the potential to align with, and add value to other funding programmes such as the Islands Programme, RGD and RCGF. 6.6 Climate Change – Projects can support enhanced sustainability. 6.7 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. 6.8 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 and Rural Communities, Housing 16th January 2025 For further information contact: Fergus Murray, Head of Development and Economic Growth or Jonathan Welch, Transformational Projects and Regeneration Manager, Tel: 0154 604329, jonathan.welch@argyll-bute.gov.uk