Argyll and Bute growth deal put on hold by UK government

Funding for a growth and investment deal in Argyll and Bute has been put on hold by the UK government.

The Scottish and UK administrations had each committed £25m to projects in the area over the next 10 years, including housing developments and facilities for business and tourism.

The UK government now says a final decision on the funding will not be made until after its review of the national finances.

Argyll and Bute Council said it was “obviously concerned” about the news, noting that it is the only area in Scotland without some kind of growth deal in place.

Argyll and Bute’s Rural Growth had hoped to create 300 jobs and bring an additional 70,000 visitors to the area each year.

Among the projects set to receive funding was the refurbishment of the Rothesay Pavillion building – which closed in 2015 – and a sea sports training facility in Campbeltown.

Housing developments on the Islands of Mull and Islay were also earmarked for funding.

The funding was announced in 2019 and confirmed in 2021. The final deal was due to be signed off in June, but that was delayed by the general election.

First Minister John Swinney had promised to sign the deal as part of his programme for government earlier this month.

He said he remains “wholly committed” to the deal.

He added: “The Scottish government is prepared to go ahead and sign this – it’s an important contribution to the regeneration of Argyll and Bute and to ensure that a most magnificent part of our country is able to benefit from new economic opportunities.”

A spokesperson for the UK government said it was “assessing the challenge of a £22bn in-year black hole”.

The spokesperson said: “We understand the decision creates issues for affected projects and programmes. We recognise this is challenging and are working closely with Argyll and Bute and partners. We will seek to provide clarity as soon as possible.”

Argyll and Bute Council and had committed to contribute at least £20m of matched funding. A spokesperson for the council said they would continue work to ensure the area was treated “fairly”.

The spokesperson said: “As it stands, Argyll and Bute is the only area in Scotland without a deal.

“This is despite the fact that Argyll and Bute’s rural growth deal invests in sectors that are key drivers for long-term economic benefit, locally and more widely at Scotland and UK level.

“We are obviously concerned that Argyll and Bute as it stands has not yet been afforded the support and commitment that all other rural growth deal areas have.”