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£70 million Growth Deal signed for ɬ

The Scottish and UK governments have signed a £70 million investment programme with ɬ Council to deliver vital economic growth for the area.

The 10 year Rural Growth Deal (RGD) for ɬ will see the Scottish and UK Governments each contributing £25 million to the programme, and the council and its partners providing at least £20 million of match funding.

The RGD is designed to deliver at least 300 additional jobs, training opportunities for more than 6,000 people, support for business growth, new housing and worker accommodation, and more than 70,000 additional visitors to the area every year.

Scottish Secretary Ian Murray said: "It was an absolute privilege to visit the Isle of Bute to sign the transformational £70 million ɬ Rural Growth Deal. Being the final of Scotland's 12 city and growth deals, it was an extra special moment. This means a package of more than £3 billion UK Government and partner investment is driving local growth and improving living standards for communities the length and breadth of Scotland.

"The UK Government is investing around £1.4 billion into important local projects across Scotland over the next 10 years - including £25 million for the ɬ Rural Growth Deal. This is our Plan for Change in action, working with the Scottish Government and local partners with investment and reform to turbocharge growth and put more money in people’s pockets."

Deputy First Minister Kate Forbes said: “ɬ is full of potential with its rich history, spectacular scenery, vibrant communities and abundance of natural resources.

“We are providing £25 million through this Deal to create jobs, attract investment and secure the region’s economic future. The Deal will support projects to drive innovation in marine science, support training that enables local people to access jobs and boost tourism to deliver sustainable economic growth.

“The Deal’s signing fulfils our commitment to ensuring that all areas of Scotland are supported by Growth Deal funding.”

Leader of ɬ Council, Councillor Jim Lynch said: “This is significant and very welcome investment in the economy and longer term future of ɬ. Our area boasts a number of key industries that support not only our local economy, but that of Scotland and the UK more widely.

“Scotland and the UK need rural and island areas like ɬ to succeed, and this growth deal is key to achieving that success. Partnership has been key in reaching this stage and will continue to be so. I look forward to working with our national and local partners in transforming this investment into economic benefit for ɬ.”

The Deal was signed on Bute, home of Rothesay Pavilion, the first project expected to be delivered with support from the Rural Growth Deal. The renovation of the 1938 Pavilion is designed to transform the building into a valuable resource for day-to-day life on Bute, and a driver for the island economy as a national tourist destination.

Projects for delivery through the ɬ Rural Growth Deal are:

Project

Project Details

Projected start date

Tourism – Creating a World Class Visitor Destination theme
Rothesay Pavilion The RGD will provide £9m of funding to support the internal fit-out of the renovation and refurbishment of the Grade A Listed Rothesay Pavilion.

When completed, the Pavilion will include an events space, office facilities, the caretaker’s house, flexible exhibition space, craft retail/café space, the dressing rooms, young people’s studio, the outdoor spaces and corridors.

When completed, the Pavilion will include an events space, office facilities, the refurbished caretaker’s house, flexible exhibition space, craft retail/café space, dressing rooms, young people’s studio, and outdoor spaces.
2024/25
Kintyre Sea Sports

The RGD will provide funding of £2m for a new water sports hub on Campbeltown Loch, creating an outstanding natural destination for sailing and other water sports.

KSS currently operates from Campbeltown Sailing Club; however, this facility no longer meets the required standards to sustain the increasing demand in the wide variety of water sports that exist in the community. The proposed new development will see the existing site redeveloped to form a two-storey building that will house changing facilities, space for learning, offices, a community café, a kitchen, and a range of storage space.

2025/26
Rural Skills Accelerator Programme (RSAP)
Business Skills This project will provide £500k of revenue funding from the Scottish Government for a programme of leadership skills training for current and future business and community leaders in ɬ so they can benefit from and contribute to the transformational opportunities from Rural Growth Deal Investment. This element of the RSAP is being led by Highlands and Islands Enterprise (HIE) and focuses on leadership interventions that will cover the whole of ɬ. 2025/26
STEM Hubs

Creating new Community STEM Hubs within the RGD will provide a platform for STEM engagement opportunities for people of all ages in ɬ. £2.5 million funding from the Scottish Government will deliver modern, aspirational facilities for online (remote) and face-to-face learning.

The RGD will also create two physical STEM Hubs – one in Dunoon and one within the European Marine Science Park near Oban.

2026/27
UHI Argyll Estate Enhancements

This project will provide £1.5 million of funding from the Scottish Government to support UHI Argyll’s campus enhancements at their Construction, Engineering, and Renewables Centre (CERC) in Lochgilphead.

The proposal seeks to expand the scope of UHI Argyll’s STEM curriculum, and significantly increase student volumes at the organisation’s construction and engineering hub in Lochgilphead to meet regional and national skills needs, maximise job opportunities aligned with emerging technologies, tackle the Climate Emergency and support the Just Transition to Net Zero.

2028/29
Creating a Low Carbon Economy
Islay Low Carbon Economy The RGD will invest up to £3 million, with £1.5 million from both the Scottish Government and UK Government, to fund the delivery of low carbon infrastructure to support the island’s pathway to net zero. The RGD presents an opportunity for public sector investment that will create an impactful change for the community. The island is also one of six included in the Scottish Government’s Carbon Neutral Islands (CNI) programme. 2032/33
Housing to Attract Economic Growth

Isle of Mull – Enabling Worker Accommodation

Isle of Islay –building our island communities

The RGD Housing proposals will be supported with an investment of up to £3 million from the Scottish Government.

The focus of this investment will be Mull and Islay. Both islands have experienced pressure in the local housing market due to above average construction costs, lack of private housing construction, and competing demand from high levels of second home ownership and holiday accommodation. These islands have also seen growth in local employment sectors such as tourism, aquaculture, and distilling; however, local workers and residents find it difficult to access accommodation, creating local recruitment challenges. The council will work with key stakeholders, developers, and community groups to explore innovative housing pilots to help provide local workers access to affordable, high-quality homes.

2025/26

 

 

2029/30

Clyde Engineering and Innovation Cluster
Colgrain The Clyde Engineering and Innovation Cluster (CEIC) project will be supported with investment of up to £7 million from the UK Government. Expansion of HM Naval Base (HMNB) Clyde through the Maritime Change Programme (MCP) provides the impetus for this project. The MCP will consolidate the UK’s submarine fleet and all its support services to HMNB Clyde, and the RGD provides a unique opportunity to support this and maximise the local economic benefits. This project will deliver new, modern commercial business space and will represent Phase 1 of a potential business and engineering cluster at the Colgrain business park site near Helensburgh. 2030/31
West Coast UAV Logistics and Training Hub
UAV Hub at Oban Airport

The West Coast UAV Logistics and Training Hub project will be supported with investment of up to £4 million from the UK Government.

This project will involve investing in new business park infrastructure at Oban Airport to allow it to become a leading research and development centre for UAV technologies, building on the success of recent pioneering trials using drone technology to provide essential services to some of Scotland’s most fragile rural and island communities. The investment will deliver Scotland’s first specialised drone training and research centre. It will also provide state-of-the-art hangars with maintenance facilities for UAVs and general aviation aircraft.

2032/33
Marine Aquaculture Programme:
Machrihanish Innovation Campus

This project will be delivered by the University of Stirling, supported by an investment of £3.8 million from the UK Government.

The RGD investment will enable research and development facilities to be upgraded at MIC to improve water quality, tank capacity, power and fresh water supplies, provision of a controlled laboratory environment and disease challenge facilities. These improvements will provide the facilities required to extend research and development opportunities for visiting researchers, students and other site users. MIC will continue to support growth in the blue economy by increasing high-value jobs both directly through the additional research and support staff required and also by enabling the expansion of existing companies and the creation of new businesses through start-ups.

2027/28
SAMS Centre for Seaweed and Shellfish Innovation and Development

The Centre for Seaweed and Shellfish Innovation and Development (C-SSIDe) will be led by the Scottish Association for Marine Science (SAMS) and supported by an RGD investment totalling £3.33 million, with £1 million from the Scottish Government and £2.33 million from the UK Government.

This project will create a platform for industrial innovation that will allow a direct commercialisation of the world-leading research expertise at SAMS to catalyze growth in the area’s high-value seaweed and shellfish industries, underpinning a diversified aquaculture system development. The new facility will be located within the European Marine Science Park and will provide the necessary capability to upscale Scotland’s seaweed and shellfish industries, particularly higher value species, at the same time as enabling the development of industry through access to state-of-the-art research and development facilities.

2028/29
Marine Industry Training Centre

UHI Argyll will deliver this project with £6 million of funding from the Scottish Government and £1.83 million from the UK Government.

This investment will create a new state-of-the-art education and training facility to provide an inspiring and engaging environment for students, staff, and business customers. It will support the growing aquaculture industry (currently worth £3.6 billion) and will directly and indirectly address the population decline and help to create local and regional employment opportunities.

2027/28

Please see the council website for more information about the Rural Growth Deal in ɬ.

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