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Rural Growth Deal – Update Paper

Argyll and Bute Council · 12 October 2023
Back to Policy and Resources Committee — 12 October 2023 and its agenda

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ARGYLL AND BUTE COUNCIL  POLICY AND RESOURCES
COMMITTEE 
DEVELOPMENT AND ECONOMIC
GROWTH 
12th October 2023
RURAL GROWTH DEAL – UPDATE PAPER 
1.0 EXECUTIVE SUMMARY
1.1 This report provides an update on the Rural Growth Deal (RGD) Programme
and in particular progress towards signing of the Full Deal Agreement, which
represents the next key milestone in the RGD process. 
1.2 In order to reach signing of the Full Deal agreement, it will be necessary to
prepare a series of Treasury Five Case Outline Business Cases for projects
within the RGD programme and the consultancy Stantec have been appointed
to assist with this process.  
1.3 The RGD Programme Management Office (PMO) are aiming to sign the Full
Deal Agreement in early 2024 however, this is subject to having outline
business cases submitted and in some cases approved by Government.  
1.4 To date the Council have submitted 4 outline business cases to Government
with a further 7 nearing draft completion.  We have received feedback from
Government policy leads on 3 OBC’s and are currently amending these
documents to address comments received.  It should be noted that business
cases can require multiple iterations prior to approval by Government and this
process can take several months.
1.5 RGD business cases and project development work is funded in advance of Full
Deal signing at risk to the Council and key delivery partners.  To date, this work
has predominantly been funded via the Council’s Inward Investment Fund
although match funding has also been secured from HIE and Scottish
Enterprise.  
1.6 The Policy and Resources Committee have previously approved the release of
3 tranches of funding totalling £450k from the Inward Investment Fund with
authority delegated to the Internal Programme Board to authorise spend to
support Rural Growth Deal project development work.  At the time of writing this
report, total approved spend on RGD project development work stands at
£367,616. 
1.7 Where possible, the RGD PMO will seek to recoup project development costs
from RGD funding allocations however, it will not be possible to submit any
claims for funding until the Full Deal Agreement has been signed.  It will be
necessary to progress project development work such as detailed design on a
number of projects in advance of Full Deal signing to ensure that Full Business

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cases can be developed for projects to be delivered in the early stages of the
programme.  
1.8 Costs associated with the development of full business cases will require to be
met by the Council and strategic partners however, these costs will be included
as part of the overall match funding for the deal.  
1.9 The P&R Committee are asked to approve a further £150,000 of funding from
the Inward Investment Fund to support the development of RGD full business
cases and associated project work for projects to be delivered in the early years
of the RGD programme. 
1.10 Where possible, the RGD PMO will continue to seek external match funding to
support project development costs.  To date, the Council and key funding
partners have secured over £15m of match funding that will directly support
projects within the RGD programme.  As such, we are confident of exceeding
the £20m match funding commitment set out in the Heads of Terms Agreement. 
RECOMMENDATIONS: 
 Approval is sought from the Policy and Resources Committee for a
further drawdown of funding from the Inward Investment Fund (up to
£150k).  Similar to previous arrangements, funds will only be drawn down
subject to the Chief Executive and two Executive Directors of the Council
being satisfied that the monies are for the purpose of delivering the Rural
Growth Deal. Any further funding required in excess of the approved
value will require further approval from the Policy and Resources
Committee. 
 Note the process and anticipated timescales for signing the Full Deal
Agreement with the Scottish and UK Governments.

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ARGYLL AND BUTE COUNCIL  POLICY AND RESOURCES
COMMITTEE 
DEVELOPMENT AND ECONOMIC
GROWTH 
12th October 2023
RURAL GROWTH DEAL – UPDATE PAPER 
2.0 INTRODUCTION
2.1 This report provides an update on the Rural Growth Deal (RGD) Programme
and in particular progress towards signing of the Full Deal Agreement, which
represents the next key milestone in the RGD process. The RGD will deliver
£50m of investment from the Scottish and UK Governments for projects that are
a driver for inclusive and transformational economic growth across the region. 
The Council and key delivery partners will also provide up to £20m of match
funding throughout the 10-year deal programme.  
2.2 The Council, UK and Scottish Governments agreed the ‘Heads of Terms’ for
the RGD on the 11th February 2021. The Heads of Terms Agreement sets out
the general areas for investment and the Full Deal Agreement will build upon
this in more detail.  In order to reach signing of the Full Deal agreement, it will
be necessary to prepare a series of Treasury Five Case Outline and Full
Business Cases (OBC’s / FBC’s) for projects within the RGD programme.  
2.3 The RGD Programme Management Office (PMO) have procured the services
of the consultancy Stantec to assist with the development of business cases
for the RGD programme.  To date, 4 OBC’s have been submitted to
Government with a further 7 nearing completion.  The Council have received
initial feedback from Government Policy Leads on 3 OBC’s and are currently
working on revised drafts.  An outline programme for the submission of RGD
business cases is included in Table 1 of this report.  
2.4 It is currently anticipated that the Full Deal Agreement will be signed early in
2024 however; this is reliant on the time taken for business cases to be
reviewed and approved by Government.  It should be noted that business
cases can require multiple iterations prior to approval by Government and this
process can take several months.  The Council and key partners are aiming to
sign the Full Deal Agreement in advance of the next UK general election as
this would result in delays to the process.
2.5 To date, costs associated with business case and project development works
have largely been funded from the Council’s Inward Investment Fund. Match
funding has also been secured from a number of key partners such as HIE
and Scottish Enterprise.  The Policy and Resources Committee have
previously approved the release of 3 tranches of funding totalling £450k from
the Inward Investment Fund with authority delegated to the Internal

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Programme Board to authorise spend to support Rural Growth Deal project
development work.  At the time of writing this report, total approved spend on
RGD project development work stands at £367,616.00. 
2.6 Where possible, the RGD PMO will seek to recoup capital costs from RGD
funding allocations however, it will not be possible to submit any claims for
funding until the Full Deal Agreement has been signed and full business
cases for projects approved.  Costs associated with the development of
project full business cases will require to be met by the Council and strategic
partners at risk in advance of funding being approved by Central Government. 
2.7 It is essential that full business cases are developed quickly for projects in the
earlier part of the RGD programme to reduce the risk of underspend in the
earlier years of the deal.  There is limited flexibility from Government around
re-profiling of RGD funds and this would be reliant on underspend from other
deals.
2.8 The P&R Committee are therefore asked to approve a further £150k of
funding from the Inward Investment Fund to support the development of RGD
full business cases and associated pre-construction works e.g. planning,
detailed design and consultancy support.  This funding will enable work to be
accelerated in advance of Full Deal Signing and ensure that projects are
ready to be delivered in the earlier years of the RGD programme.
2.9 The RGD PMO will continue to seek external match funding to support project
development costs and meet funding gaps.  To date, the Council and key
funding partners have secured over £15m of match funding that will directly
support projects within the RGD programme.  Given the significant funding
secured to date, throughout the lifetime of the programme it is considered
likely that RGD partners will exceed the £20m match funding commitment set
out in the Heads of Terms Agreement. 
3.0 RECOMMENDATIONS
 Approval is sought from the Policy and Resources Committee for a
further drawdown of funding from the Inward Investment Fund (up to
£150k).  Similar to previous arrangements, funds will only be drawn down
subject to the Chief Executive and two Executive Directors of the Council
being satisfied that the monies are for the purpose of delivering the Rural
Growth Deal. Any further funding required in excess of the approved
value will require further approval from the Policy and Resources
Committee. 
 Note the process and anticipated timescales for signing the Full Deal
Agreement with the Scottish and UK Governments.   
4.0 DETAIL
4.1 The Council agreed the ‘Heads of Terms’ for the RGD on the 11th February
2021 and are currently working towards signing the Full Deal Agreement.  The

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RGD PMO and key stakeholders are working with the consultancy Stantec to
develop projects and progress a series of Treasury Five business cases (OBC’s
and FBC’s).   
4.2 Upon signing the Full Deal Agreement, the Council will enter year 1 of a 10-year
programme of delivery for the RGD.  As such, projects in the earlier part of the
programme will require to be more advanced by Full Deal signing than those in
the middle / later stages.  OBC’s for projects in the earlier stages of the RGD
programme will require Government approval in order to sign the Full Deal
Agreement and full business cases will be necessary in advance of any draw
down of funds. 
4.3 At present, the following 7 key investment themes and 14 interdependent
projects are included as part of the emerging RGD programme;-
 RGD 1: Tourism – Creating a World Class Visitor Destination;
o Kintyre Sea Sports;
o Rothesay Pavilion;
 RGD 2: Creating a Low Carbon Economy;
 RGD 3: Rural Skills Accelerator Programme (RSAP);
o Dunoon STEM Hub;
o SAMS STEM Hub;
o Business Skills Support;
o UHI Argyll Estate Enhancements – Dunoon;
 RGD 4: Housing to Attract Economic Growth;
o Tobermory worker accommodation;
o Islay housing pilot
 RGD 5: Clyde Engineering and Innovation Cluster (CEIC);
 RGD 6: West Coast UAV Logistics and Training Hub;
 RGD 7: Marine Aquaculture Programme;
o Marine Industry Training Centre;
o SAMS Seaweed and Shellfish R&D Centre;
o Stirling University Machrihanish Innovation Campus.
4.4 The RGD PMO have been working with Stantec and key delivery partners to
progress this business cases required to sign the Full Deal Agreement.  To date,
4 OBC’s have been submitted to Government with a further 7 nearing
completion.  The Council have received initial feedback from Government Policy
Leads on 3 OBC’s and are currently working on revised drafts.  An outline
programme for the submission of RGD business cases is included in Table 4.1
below:-
Table 4.1 Business Case Tracker
Project
Ref
Project Stage Target month for
submission to
Government
RGD1 Rothesay Pavilion  Stantec are drafting a Full
Business Case, as agreed
September
2023

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with both Governments.
Work is progressing well
and on target.
RGD1 Kintyre Sea Sports Feedback on first draft
OBC received 31st May.
Stantec and KSS are
working to address
feedback. Aim to submit
second iteration in late
September. 
September
2023
RGD2 Low Carbon
Economy - Islay
Stantec are drafting OBC.
Aim to submit in late
August/early September
August 2023
RGD3 Rural Skills
Accelerator
Programme OBC
Stantec continue to draft
OBC. OBC has been
delayed due to delays in
confirming preferred
options. 
October 2023
RGD4 Housing – Isle of
Mull
Agreed with Government to
delay OBC submission, to
allow a more developed
OBC to be submitted once
Stantec progress design
and costing work, which is
being taken forward as part
of Islands Programme
funding award. 
October 2023
RGD4 Housing – Isle of
Islay
Agreed with Government to
submit in October 2023 to
allow confirmation of
preferred site. 
October 2023
RGD5 Clyde Engineering
& Innovation
Centre
Submitted to Government
on 18th July 2023.
Currently awaiting
feedback. 
Submitted
July 2023
RGD6 West Coast UAV Submitted to Government
on 21st June 2023 with
feedback now received.
Stantec revising economic
case and further
amendments to be made
with input from project
team.
October 2023
(revised
OBC)

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RGD 7
MAP
Marine
Aquaculture
Programme –
Marine Industry
Training Centre
Feedback on first draft
OBC received 31st May.
UHI Argyll currently
working to address
feedback and hope to
submit next iteration in
August 2023 
August 2023
RGD 7
MAP
Marine
Aquaculture
Programme –
SAMS
International
Seaweed &
Shellfish Industry
R&D Centre
HIE advising that further
work is required on
Economic Case. PMO
expect to receive in 
September 2023. 
September
2023
RGD 7
MAP
Marine
Aquaculture
Programme –
Marine
Environmental
Research
Laboratory
PMO hope to receive OBC
in late September 2023. 
October 2023 
4.5 Deputy Directors from Central Government met with Council staff and project
leads at SAMS on the 1st June 2023 to discuss progress towards signing of the
Full Deal Agreement.  Government indicated that they are content with the
progress being made across the deal programme and encouraged the Council
aim to sign the Full Deal in advance of the next UK General Election as this
would result in delays to the process.
5.0 Rural Growth Deal Budgets and Change
5.1   The quantum figure for City Region and Growth Deals is fixed as part of the
Heads of Terms agreement and Central Government have advised that there
will be no additional funding throughout the lifetime of the deal.  As such, Argyll
and Bute Council will receive a maximum of £50m from Central Government
over the 10-year RGD programme.  
5.2 There is limited capacity within deal programmes to account for construction
price inflation and it will be necessary to secure external match funding to meet
any funding gaps on projects.  The programme will continue to be reviewed
frequently by the Programme Board to ensure that projects remain affordable
throughout the lifetime of the deal and protocols are in place should changes be
necessary to the programme.  
5.3 The Council and key delivery partners also require to consider operational costs
and potential impacts on revenue budgets.  The RGD is predominantly capital

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funding with very limited revenue available to meet future operational costs
(maximum of £2.5m across deal programme).  
5.4 Table 5.1 below, sets out further detail on the emerging split of funding across
the RGD programme. 
Table 5:1  - Proposed RGD funding Split 
Project Name Funding
Committed
UK
Government
Scottish
Government
Tourism  Rothesay Pavilion £9m £4.5m £4.5m
KSS £2m - £2m
Creating a low carbon economy £3m £1.5m £1.5m
Rural Skills Accelerator Programme
Dunoon STEM Hub £2.5m - £2.5m
SAMS STEM Hub £2.5m - £2.5m
Business Skills £0.5m - £0.5m
Built Environment Argyll College UHI  £1.5m - £1.5m
Housing  £3m - £3m
CEIC £7m £7m -
UAV Logistics & Training Hub £4m £4m -
Marine Aquaculture Programme
Machrihanish Innovation Campus £3.84m £3.84m -
SAMS International Seaweed and
Shellfish Industry R&D Centre £3.33m £2.33m £1m
Marine Industry Training Centre £7.83m £1.83m £6m
Total Funding £50m £25m £25m 
6.0  RGD PROJECT UPDATES
6.1  Tourism - Creating a World Class Visitor Destination
6.1.1 Following the decision by the Programme Board in May to re-profile funding
within the Tourism / Place programme to focus on completion of the Rothesay
Pavilion project, the RGD PMO and members of the Internal Programme Board
met with Government on the 30th June 2023 to seek an agreement in principal
to support this proposal.  The UK and Scottish Government have subsequently
confirmed that they are content to give agreement in principal to re-profiling
funding within the Tourism programme as follows:-
 £9m – Rothesay Pavilion;
 £2m – Kintyre Sea Sports.
6.1.2 It should be noted that this is an “in principal” commitment and these projects
still require full business cases to be approved prior to RGD funding being drawn
down.  This will however, reduce risk to the Council of progressing further

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phases of the Pavilion contract and it is anticipated that the full business case
for this project will be submitted to Central Government in September 2023.
6.1.3 The P&R Committee endorsed the decision to include Rothesay Pavilion within
the RGD programme on the 10th August 2023.  Government are content that
this demonstrates a clear commitment by the Council to continue to work with
key partners to secure the funding necessary to complete this project. 
6.1.4 The RGD PMO have received feedback from the Scottish and UK Government
on the first draft OBC for the Kintyre Sea Sports project.  Stantec and the project
leads are currently working on a revised draft taking account of the comments
received by Government policy leads.  The Council have also submitted a stage
1 RCGF funding bid for this project for funding totalling £700k.  If successful, this
will provide significant match funding for the project and a decision is expected
from the Scottish Government in September 2023.  If the stage 1 bid is
approved, a more detailed stage 2 funding bid will be submitted later in the year.  
6.2 Creating a Low Carbon Economy
6.2.1 The emerging project proposals for this theme focus on the delivery of domestic
home energy efficiency and heat decarbonisation measures including potential
pilots in conservation areas and heritage properties. The focus on domestic
properties follows advice from the local Distribution Network Operator regarding
grid constraints on Islay.  This makes it very challenging to deliver projects of
scale without the requirement to balance electricity generation and demand.  
6.2.2 Stantec and project stakeholders continue to work on the investment priorities
and OBC for this project. It is anticipated that a draft OBC will be submitted to
Government in September 2023. In advance of this, a meeting was held with
Stantec and Government Economists to raise awareness of the project and the
economic modelling approaches that Stantec have used in the development of
the OBC. 
6.2.3 A series of meetings have been held to identify partners and potential match
funders for the project. The funding landscape for net-zero projects is
particularly complex and it will be important to ensure that the RGD provides
additionality without duplicating existing schemes.  To date, the Council has
been engaging with stakeholders including Historic Environment Scotland, BE-
ST, Energy Systems Catapult and Home Energy Scotland. 
6.2.4 It is likely that this project will be delivered later in the Rural Growth Deal
programme as significant work is still required to finalise investment priorities
and develop future delivery models.  The Council are also working closely with
key industries on Islay to investigate where RGD investment could support a
more transformational infrastructure project in light of the distilling sectors
commitments to decarbonise and the potential for significant offshore wind
developments in the area.  
6.3 Rural Skills Accelerator Programme (RSAP)

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6.3.1 The Rural Skills Accelerator Programme (RSAP) is being progressed as a
programme level OBC including three component parts as follows:
 STEM Hubs (physical, outreach & mobile)
 Argyll College UHI built environment
 Business Skills
6.3.2 The STEM Hubs will include a mix of physical hubs, mobile and outreach
activities and the overarching focus of this project is to provide a platform for a
transformational step change in local STEM education aligned to emerging
job opportunities.
6.3.3 Due to receipt of match funding, work has advanced to take forward the
repurposing of the council owned Hill Street building, to create a Dunoon
Community STEM Hub in the south of Argyll. With planning permission and a
building warrant in place, the Stage 1 construction works tender for the
Dunoon facility was published on 11th May 2023. The tender has now
progressed to Stage 2, with a tender award likely to be made in September
2023 (subject to affordability). 
6.3.4 The second STEM Hub will be located within the European Marine Science
Park at Dunstaffnage and will be operated by SAMS.  This Hub will include a
particular focus on marine STEM education however, it is vital that this facility
complements the wider STEM programmes being delivered by the Council.
6.3.5 The RGD will also provide an opportunity to ensure that regional STEM
activities are delivered in a more coordinated manner given that programmes
are currently being delivered by UHI Argyll, SAMS, the Council and private
sector stakeholders.
6.3.6 It has been agreed that the Business Skills element will be led by HIE and the
focus of this programme will be developing business leadership skills.  This
will align with and complement the UK Shared Prosperity Fund Investment
Plan business support programme being delivered by the Business Gateway
Team until the end of March 2025. 
6.3.7 UHI Argyll continue to develop options for their estate enhancements in
Dunoon.  A HubNorth facilitated workshop was held in June to explore site
options for this project. At present, it is likely this will focus on UHI Argyll’s
current facility at West Bay, Dunoon.
6.4 Housing to Support Economic Growth  
6.4.1 This project is focused on housing pilots on the islands of Mull and Islay and
will aim to support wider work being undertaken to address our housing
emergency. Match funding of up to £700k has been awarded from the
Scottish Government’s Islands Programme to fund enabling infrastructure
works at the Council owned Rockfeild Road site in Tobermory.  This will
include roads, key utilities and the submission of a detailed planning
application for the wider site. Stantec are progressing work on a site layout,

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infrastructure and design. The enabling infrastructure work is programmed for
completion by October 2024. 
6.4.2 It is anticipated that the OBC for the Tobermory housing project will be
submitted to Government in October to allow sufficient time to incorporate
some of the work being delivered by the Islands Programme funding.
6.4.3 Discussions continue with Islay Estates and ACHA in terms of developing
housing at Bowmore. The intention is for the Rural Growth Deal to assist with
infrastructure works that will enable the delivery of local housing. The Council
intend to secure 4 plots from Islay Estates and deliver 4 houses for sale with a
Rural Burden attached ensuring that the houses are occupied as principal
homes. 
6.4.4 In addition, Kilarrow House in Bowmore that is owned by the Council is
subject to an options appraisal for future use as it has been deemed surplus
to requirements. If the option chosen is to demolish the building then this site
could be used to deliver the Rural Growth Deal housing project on Islay.
6.4.5 The Council are working with Stantec to draft an OBC for the Islay housing
project and it is anticipated this will also be submitted to Government in
October 2023.
6.4.6 The Scottish Government confirmed on 27th June that the intention is to
recommend to Scottish Ministers that they make an Order designating Argyll
and Bute Council as a Rural Housing Body. Further consultation will take
place with businesses on Mull and Islay before the final recommendation is
made. 
6.5.0 Clyde Engineering and Innovation Cluster
6.5.1 This project is the main UK Government funded project in the RGD programme
and will focus on providing commercial accommodation within Helensburgh to
maximise local benefit from the Royal Navy’s £1.3bn Maritime Change
Programme.  
6.5.2 The preferred site is located at Iona Stables, Colgrain and has Planning
Permission in Principal for the creation of 60,000 sq. ft. (5,574 sqm) of high-
quality office development, a public house/restaurant with car parking and
external landscaping.  The site at Colgrain is privately owned however, the
Council are working with the landowner and agents to progress land
negotiations.
6.5.3 The OBC for the CEIC was submitted to Government on the 18th of July 2023
for first stage feedback.  Concept design work has been progressed by Stantec,
and initial costings have been reported. It is likely that the preferred option (floor
area of 3,000sqm) will have a funding gap of circa £3m - £5m depending on
when the project is delivered.  Project leads have been working with Scottish
Enterprise to identify potential sources of match funding for this project.

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6.5.4 Site investigations at Colgrain commenced in early April 2023 and Stantec are
preparing reports on the findings.  This will inform future detailed design and
price estimation work required for the full business case. 
6.5.5 The Council continue to work in partnership with the MOD, Royal Navy and key
industrial partners as part of the design process.  Where possible, we will ensure
that this project is programmed to meet the needs of contractors being re-
located to the area or away from the base.  
6.6.0 West Coast UAV Logistics and Training Hub
6.6.1 This project aims to create a permanent base at Oban Airport to fly and
maintain drones, as well as train pilots, educate and inspire children, and
develop further uses for drones.  The draft OBC for this project was submitted
to Government in May 2023 with feedback received in August.  The Council
are currently working with consultants Stantec to revise the OBC taking
account of comments received from Government policy leads. 
6.6.2 Further proof of concept trials will be funded using a £250k grant secured from
the UK Government’s Regulators Pioneer Fund. Trials are starting in September
and these will focus on the regulation of drones operating beyond visual line of
site within controlled airspace.  Oban Airport is ideally situated to enable such
trials given its proximity to clear airspace. These trials could have national
significance for the safe integration of drones in controlled airspace.
6.6.3 The Council continue to work with private sector stakeholder Skyports to deliver
local drone trials in Argyll and Bute.  SAMS are also a key stakeholder who are
keen to develop local testing capabilities for drones and robotics and are
supportive of the UAV Hub proposals.
6.7.0 Marine Aquaculture Programme (MAP)
6.7.1 The MAP is being led by HIE and consists of the following 3 projects:-
 UHI Argyll College Marine Industry Training Centre (MITC);
 SAMS International Seaweed and Shellfish Industry R&D Centre;
 Stirling University Machrihanish Innovation Campus.
6.7.2 These projects are at varying stages of development.  The OBC for MITC was
submitted to Central Government for first stage feedback on 4th April. HIE /
UHI Argyll are currently revising the OBC taking account of feedback received
by Government Policy Leads. 
6.7.3   SAMS are working with EKOS to develop the business case for the
International Seaweed and Shellfish Industry R&D Centre. The PMO expect
to receive a draft OBC in September 2023.  
6.7.4 Stirling University are also working with EKOS to develop their OBC for a new
or refurbished facility at Machrihanish. It is anticipated that a draft OBC for this
project will be submitted to Government in October 2023.  This project will
also complement marine aquaculture projects being delivered as part of the
Stirling and Clackmannanshire Growth Deal.

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7.0 FULL DEAL DOCUMENTATION
7.1 As part of the Full Deal process, the RGD PMO will require to draft the following
documents:-
 Full Deal Agreement;
 Implementation Plan;
 Governance Plan;
 Financial Plan;
 Communications Plan
7.2 There may also be the requirement for projects to include some or all of the
following:- 
 Equality Impact Assessments; 
 Fairer Scotland Impact Assessments; 
 Environmental Impact Assessments (if required);
 Islands Impact Assessments (if required)
 Carbon Management Plans. 
8.0 CONCLUSION
8.1 The RGD PMO are working towards signing of the Full Deal Agreement, which
represents the next key milestone in the RGD process. Project leads have been
working with Stantec to prepare a series of outline business cases that require
to be submitted to Government in advance of deal signing. To date the Council
have submitted 4 outline business cases with a further 7 nearing draft
completion.  
8.2 It is currently anticipated that the Full Deal Agreement will be signed early in
2024 however; this is reliant on the time taken for business cases to be
reviewed and approved by Government.  It should be noted that business cases
can require multiple iterations prior to approval by Government and this process
can take several months.  
8.3 The RGD PMO continue to work with key stakeholders and Stantec to develop
RGD projects and the suite of documents required for Full Deal Signing.  
8.4 The Policy and Resources Committee have previously approved the release of
3 tranches of funding totalling £450k from the Inward Investment Fund with
authority delegated to the Internal Programme Board to authorise spend to
support Rural Growth Deal business case and project development work.  At the
time of writing this report, total approved spend on RGD development work
stands at £367,616.
8.5 Following signing of the Full Deal Agreement, it will be necessary to draft full
business cases for the approval of Central Government prior to the drawdown of
RGD funding.  This will require further project development work such as
detailed design, planning and consultancy support to inform full business cases.

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8.6 The Policy and Resources Committee are asked to approve a further
£150,000.00 draw down from the Inward Investment Fund to support the
development of full business following signing of the Full Deal Agreement.  This
is necessary to ensure draw down of RGD funds in the earlier stages of the
programme.   
9.0 IMPLICATIONS
9.1 Policy – The RGD is consistent with the Council’s Economic Strategy.
9.2 Financial – The RGD requires financial and staff resources from the Council.
9.3  Legal – The RGD may require input from Legal Services as part of the Full Deal
Signing.
9.4  HR – None at present.
9.5  Fairer Scotland Duty: Required as part of OBC process.
9.5.1   Equalities - protected characteristics - Equality Impact
Assessments are required for all RGD projects.
9.5.2   Socio-economic Duty - The Rural Growth Deal will follow
Scottish Government guidance on Inclusive growth including
measures to address socio-economic disadvantage
9.5.3   Islands – Islands impact assessments required as part of OBC
process where necessary.
9.6  Climate Change – Carbon Management Plans are required for all RGD
business cases. 
9.7 Risk – Spend incurred in advance of approval of FBCs will be at risk to lead
partner.
9.8 Customer Service – None at present. 
Kirsty Flanagan Executive Director with responsibility for Development and
Economic Growth 
Policy Lead for Economy and Rural Growth: Councillor Robin Currie 
September 2022                                      
For further information contact: 
Jonathan Welch, Rural Growth Deal Programme Manager
Jonathan.Welch@argyll-bute.gov.uk   
Fergus Murray, Head of Development and Economic Growth 
Fergus.Murray@argyll-bute.gov.uk