The £70 million rural growth deal for PվɫÇéƬ and Bute will progress following a spending review by the UK Government. The Treasury’s share of the project had been put on hold ahead of the Budget, but the Chancellor has now given the green light in a move welcomed by the local authority.
Progress updates
Our £70 million Rural Growth Deal for PվɫÇéƬ and Bute continues to progress. We are pleased to provide a progress update here:
- Progress update - March 2024
- Progress update - December 2023
- Progress update - September 2023
- Progress update - May 2023
- Progress update - January 2023
- Progress update - March 2022
- Progress update - June 2022
- Progress update - September 2022
What is the Rural Growth Deal?
The Rural Growth Deal (RGD) is a 10-year programme that will deliver £70 million of investment to develop PվɫÇéƬ and Bute’s economic potential into a successful future for the area.
The Scottish and UK Governments have each allocated £25 million to the programme, and the council and its partners will contribute at least £20 million of match funding.
What will it achieve?
The RGD will create opportunities for people living in PվɫÇéƬ and Bute and attract future investment by increasing productivity, growing the working-age population, addressing key infrastructure and skills gaps and delivering a more inclusive economy. Through the programme, we aim to:
- Deliver at least 300 additional jobs
- Create 6,500 m2 of new business space
- Deliver training opportunities to over 6,000 students and individuals
- Support local businesses to thrive
- Construct new housing and worker accommodation to help address the local housing emergency
- Generate over 70,000 additional visitors to the area per annum
How will this happen?
The programme brings together partners committed to delivering inclusive economic growth. We consulted our communities and partner organisations to put together a list of proposals based on achieving three things:
- Connecting: our high-value business sectors with national and international business markets; our local economic successes with national strategic priorities
- Attracting: additional skills, training and learning opportunities; new residents, visitors and businesses
- Growing: doing more of what works and making more of our natural and built resources
Investment themes
Our RGD proposals are about placing investment where it will best develop PվɫÇéƬ and Bute as a successful region and economic driver for Scotland and the UK. Our proposals are underpinned by the RGD’s seven investment themes:
- Tourism – Creating a World Class Visitor Destination
- Creating a Low Carbon Economy
- Rural Skills Accelerator Programme
- Housing to Attract Economic Growth
- Clyde Engineering and Innovation Cluster
- West Coast UAV Logistics and Training Hub
- Marine Aquaculture Programme
From these themes, we identified the following projects:
| Project | *Projected start date: |
|---|---|
|
Tourism – Creating a World Class Visitor Destination theme |
|
| Rothesay Pavilion | 2024/25 |
| Kintyre Seasports | 2025/26 |
|
Rural Skills Accelerator Programme |
|
| Business Skills | 2024/25 |
| STEM Hubs | 2026/27 |
| UHI PվɫÇéƬ Estate Enhancements | 2028/29 |
|
Creating a Low Carbon Economy |
|
| Islay Low Carbon Economy | 2032/33 |
|
Housing to Attract Economic Growth |
|
| Isle of Mull | 2025/26 |
| Isle of Islay | 2029/30 |
|
Clyde Engineering and Innovation Cluster |
|
| HM Naval Base (HMNB) Clyde | 2030/31 |
|
West Coast UAV Logistics and Training Hub |
|
| UAV Hub at Oban Airport | 2025/26 |
|
Marine Aquaculture Programme: |
|
| Machrihanish Innovation Campus | 2025/26 |
| SAMS Seaweed & Shellfish Industry R&D Centre | 2026/27 |
| Marine Industry Training Centre | 2027/28 |
*Please note: Project start dates are subject to the approval of full business cases by the Scottish and UK Governments. They are also dependent on securing any match funding necessary to meet funding gaps.
Next steps
The council, UK and Scottish Governments agreed the ‘Heads of Terms’ on 11 February 2021. This sets out the general areas for investment.
You can read the Head of Terms Agreement here
These include aquaculture, innovation, tourism, housing, digital connectivity and skills for a rural economy.
The next stage is for the council and its rural growth deal partners to develop business cases that will set out the detail of projects for delivery. This is expected to take 1-2 years to complete and it is only following approval of these business cases by both Governments that rural growth deal funding becomes available for use.
The rural growth deal programme is expected to be delivered over a 10 – 15 year period.
Find out more
Read some of the comments from the consultation: Public backing for a
rural growth deal for PվɫÇéƬ
Read our Rural Growth Deal proposals: Areas for investment
Answers to some questions you may have: Questions and answers