FUNDING for an investment deal in Argyll and Bute has been put on hold by the UK Government, leaving it the only area in Scotland without some form of growth deal, the council has said.
Both the Scottish and UK administrations had each committed £25 million for projects including housing developments and facilities for business and tourism in the area for the next 10 years.
However, the UK Government has now said a final decision on the funding will not be made until after its review of the national finances, leaving Argyll and Bute Council “obviously concerned” about the news.
First Minister John Swinney promised to sign the deal as part of his programme for government earlier this month.
The Argyll and Bute's Rural Growth project had aimed to create 300 jobs and bring an additional 70,000 visitors to the region each year.
Housing developments on the Islands of Mull and Islay were among projects earmarked for funding from the project, along with a sea sports training facility in Campbeltown and the refurbishment of the Rothesay Pavillion building.
Funding was initially announced in 2019 and confirmed in 2021 with the final sign-off on the deal scheduled for June this year – which was pushed back due to the General Election.
Swinney said he remains “wholly committed” to the deal.
He added: “The Scottish Government is prepared to go ahead and sign this – it’s an important contribution to the regeneration of Argyll and Bute and to ensure that a most magnificent part of our country is able to benefit from new economic opportunities.”
A spokesperson for the UK Government said it was “assessing the challenge of a £22bn in-year black hole”.
The spokesperson said: “We understand the decision creates issues for affected projects and programmes.
“We recognise this is challenging and are working closely with Argyll and Bute and partners. We will seek to provide clarity as soon as possible.”
Argyll and Bute Council had committed to contributing at least £20m of matched funding for the project.
A spokesperson for the local authority said they would continue work to ensure the area was treated “fairly”.
The spokesperson said: “As it stands, Argyll and Bute is the only area in Scotland without a deal.
“This is despite the fact that Argyll and Bute’s rural growth deal invests in sectors that are key drivers for long-term economic benefit, locally and more widely at Scotland and UK level.
“We are obviously concerned that Argyll and Bute as it stands has not yet been afforded the support and commitment that all other rural growth deal areas have.”
The Scottish Government has been approached for comment.
