Perth city centre plans in jeopardy as £5m government aid ‘withdrawn’

Perth city centre has lost out on £5 million in government funding, say council bosses.

The money was earmarked for three Perth projects by the Conservatives when they were in power at Westminster

But Perth and Kinross Council chiefs say they have now had confirmation that the Labour government has withdrawn the ‘Levelling Up’ funding.

And that leaves uncertainty over all three schemes.

The council had been counting on:

• £3m to restore Perth’s Lower City Mills as a tourist attraction with office space.

• £1.5m to convert a long-vacant former foundry next to Perth Museum into “The Ironworks” – an exhibition and work space for local makers.

• £500,000 to turn the former VisitScotland tourist information centre on Perth High Street into a shopfront for Perthshire food and drink providers.

Perth and Kinross Council leader Grant Laing says the withdrawal is “an extremely disappointing – and, in my opinion, short-sighted – decision”.

He added: “When the £5 million 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.

“To have the rug pulled out from under us by the new Labour government now simply
adds insult to injury.”

He said the council would now look to see if other sources of funding are available.

Change of government dealt blow to Perth funding ambitions

Perth and Kinross Council was only invited to bid for the £5m in Levelling Up money following the Conservatives’ spring budget.

It came with strict criteria, meaning the money had to be spent on cultural projects that would bring about city centre regeneration.

The council also had to demonstrate that it could deliver all three bids by March 2026.

Officers submitted the three ideas in time for the June 3 deadline.

But Labour’s landslide victory on July 4 threw the plans into disarray.

Party bosses made clear they regarded Levelling Up as a relic of the Boris Johnson era.

And Wednesday’s Budget appeared to sound the the death knell for Perth’s dreams.

Officially, the UK Government says it is “minded to cancel” awards which are not yet under way.

It says consultations will follow.

Civic leaders in Dundee, Arbroath and Dunfermline are now scrambling to establish what the move means for them.

But the Perth and Kinross Council statement suggests local leaders have already accepted defeat.

Chief executive Thomas Glen says he shares Mr Laing’s frustrations.

“It is extremely disappointing the new UK Government has chosen not to uphold the pledge made to Perth and Kinross in March,” he said.

“These three projects are part of our ambitious plans to regenerate Perth city centre. But they require funding to become a reality.”

The proposals were not universally popular.

In May Labour councillor Alasdair Bailey labelled the package “two projects that nobody asked for and one [the Lower City Mills] that nobody else would fund”.

Speaking at Wednesday’s meeting of the full council, he said he hoped Perth and Kinross would be entitled to a fairer share of funding under future plans at Westminster.