Doubt has been cast over how secure government funding is for major regeneration projects in Perth.
Earlier this year the former Conservative UK government committed £5 million of Levelling Up funding to three city centre projects, while £15 million from the Tay Cities Deal has been committed to the transformation of Perth’s bus and train station.
Council leader Grant Laing has told councillors the secretary of state for housing, communities and local government Angela Rayner gave him “little comfort” the £5 million promised to Perth would be delivered.
The three projects which were set to benefit from the funding are:
- A £3 million development of Lower City Mills into a tourist attraction
- Transforming The Ironworks into an exhibition and Unesco City of Craft makers and retail space
- Creating A Taste of Perth and Kinross outlet for micro-producers
Following the July general election the new Labour government reverted to the department – which Ms Rayner is responsible for – being called the department of housing, communities and local government rather than the department of housing, communities and Levelling Up.
As councillors considered the Perth City Plan at a meeting last week, Perth and Kinross Council’s SNP leader Grant Laing revealed he wrote to the deputy prime minister asking if the £5 million of Levelling Up funding would still come to Perth.
Letter to Angela Rayner
Cllr Laing told councillors: “Over the last few days and weeks funding has been discussed and the lack of funding on various things moving forward.
“I wrote to Angela Rayner – in a personal capacity – congratulating them on forming a new government but asking what the status was on the £5 million we have been awarded by the previous Conservative government.
“I got no comfort in the response that we would get that.
“And unfortunately, our funding is decided at levels above us.”
After the meeting, when the same question was posed to the department of housing, communities and local government, a UK Government spokesperson simply told the Local Democracy Reporting Service “further details on this will be set out in due course”.
Tay Cities deal concern
Cllr Laing also shared his concern about the £15 million from the Tay Cities Region Deal which has been committed to the transformation of Perth Railway Station.
Plans for the station include adding a bus interchange and re-exposing the original Victorian building to create a new civic square in front.
At last Wednesday’s meeting, Cllr Laing said: “Governments are clawing back money, and if we don’t spend the money within the timeframe, is there a danger that both governments would take the Tay Cities Deal money that is unspent back?”
David Littlejohn, the council’s strategic lead for economy, development and planning, said the money was “absolutely safe – for now”.
Mr Littlejohn added: “I think ultimately in the very long term that’s a possibility but the £15 million is programmed to be spent towards the end of the deal period.
“Officers had meetings with Scottish and UK government directors earlier this week and there’s no indication whatsoever that any of this money is going to be removed from the Tay Cities Deal.
“And the management group is very clear that at the moment there is no appetite to remove money from particular projects unless it’s absolutely clear there’s no prospect of them being delivered.”
Conversation