MP describes PKC loss of £5m for city projects in budget "unjust"

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A Perthshire MP has urged the chancellor to honour £5m of PKC Levelling Up money which appears to have been scrapped in Wednesday’s budget.

Perth and Kinross-shire MP Pete Wishart pointed out in a letter to Rachel Reeves that the money - awarded to PKC in March - has already been formally allocated to landmark Perth city projects.

They are: restoring Perth’s A-listed Lower City Mills as a tourist attraction (£3m); converting the long-vacant former foundry next to Perth Museum into “The Ironworks” (£1.5m) and turning the VisitScotland tourist information centre on Perth High Street into a shopfront for Perthshire food and drink providers (£500,000).

The UK Government are dropping ‘Levelling Up’ as an initiative, leading to concerns that the funding could be lost. PKC councillors have branded the withdrawal of the £5m for Perth as a huge setback.

In his letter to the chancellor, dated October 31, Mr Wishart said: “I appreciate that this funding was awarded by the previous government, and we now have a new administration with a different set of priorities.

“However, it still seems to me to be deeply unjust for this funding to be taken away when it had been already been formally committed and allocated to specific projects prior to the election, thanks to the hard work and time spent by council officers.

“I therefore urge for you to look into this matter with the view of granting the £5 million award, in order that PKC can progress on with developing these essential projects, which will undoubtedly have a transformative impact on the Perth’s city life, its businesses and its residents.”

Council leader Grant Laing had said following the budget: “We are all well aware of the financial challenges facing the UK but this is an extremely disappointing – and, in my opinion, short-sighted – decision.

“We have three excellent projects ready to start, all of which would help to breathe new life into Perth city centre for the benefit of residents, businesses and visitors.

“Perth fought hard for a share of funding. When the £5m was announced in March this year I was pleased the UK Government had finally recognised the value of investing in Perth and Kinross, even if we received a smaller share than many other areas.”

The only Labour PKC councillor Alasdair Bailey said: “Obviously it’s bitterly disappointing to lose that £5m of capital funding specifically for the city of Perth.

“But in the grander round of things there is £3.4 billion of Barnett consequentials coming to the Scottish Government. If those were to be distributed evenly per capita across Scotland that would give our local authority area something like £100m.

“Let’s wait and see what else is coming. For me it’s a good day at the office if you perhaps lose £5m but gain £100m in the same stroke but let’s wait and see what the Scottish Government does with those Barnett consequentials.”

The PA has contacted the Treasury for comment.

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