£70m rural growth deal for Argyll and Bute is signed

A £70m investment in economic growth for Argyll and Bute was agreed today, with the formal signing of the area’s rural growth deal.

The deal brings together £25m each from the Scottish and UK Governments, and at least £20m via Argyll and Bute Council and partners, creating opportunities for people living in the region and attracting future investment.

Last month it was revealed here that the ‘regeneration’ of Rosneath Peninsula villages and Garelochhead as part of the deal had been discussed behind closed doors by the council and Ministry of Defence.

With today’s signing, the council, the UK Government and Scottish Government will agree themes for a programme of investment lasting up to 15 years.

Aquaculture, tourism, housing, digital connectivity and skills for a rural economy are among the sectors set for development.

Council leader Robin Currie said:“The Rural Growth Deal is about turning economic potential into a successful future for Argyll and Bute.

“This transformational investment will focus on connecting our high value business sectors with national and international business markets, on attracting additional skills, residents, visitors and businesses, and on growing benefit from our fantastic natural assets.

“Reaching this milestone has been a partnership effort – thank you to everyone involved. Especially in these times of unprecedented challenge, this is an important day for Argyll and Bute.”

The investment will support projects including:

• A Clyde engineering and innovation cluster aiming to develop local economic benefits, from the MoD’s Maritime Change Programme, by addressing the lack of commercial accommodation for supply services.
• Housing to attract economic growth: provide affordable housing for key workers to support growing business sectors and help attract the people and skills the area needs.
• Tourism: Developing the area as a West of Scotland ‘must visit’ location for the maritime leisure market, as well as delivering waterfront infrastructure ‘to support the regeneration of some of Argyll and Bute’s key coastal towns and villages’.
• Aquaculture: Developing the area as ‘a national and international centre for excellence in innovation and research; as well as creating marine industry training centre to support the growth of marine sectors
• Low carbon economy: Using renewable energy resources to help deliver more sustainable local energy systems on Islay.
• Rural skills accelerator programme: Creating ’21st century infrastructure for skills, training, education and enterprise’ for rural communities.
• A West Coast Aviation, UAV, robotics and compliance hub, with Oban Airport becoming a leading research and development centre for unmanned aerial vehicle (UAV) technologies and the UK’s first dedicated drone training centre with indoor facilities.
• Argyll and Bute digital connectivity: rolling out superfast broadband to key areas without it, and expanding 4G and 5G coverage.

Cabinet Secretary for Transport, Infrastructure and Connectivity Michael Matheson said:

“Today marks the signing of the Heads of Terms agreement, a significant step forward for the Argyll and Bute Rural Growth Deal. The Scottish Government is supporting this deal with investment of up to £25m.

“This deal will drive and deliver projects, designed by local partners, that will help to reinvigorate the region’s economy and build strategically for its long-term growth and prosperity. Playing to Argyll and Bute’s strengths, projects will focus on creating a world class visitor destination and building on its world leading marine research expertise reflected in the marine aquaculture programme.

“At a time of such economic uncertainty and challenge, the projects and investment committed through the deal will be more important than ever and will play a key role in the region’s recovery from the pandemic. Investments through the deal will create new jobs, protect existing jobs and extend economic opportunities to communities, businesses and individuals across the region.

UK Government Minister Iain Stewart said: “This is an important milestone for the Argyll and Bute Rural Growth Deal which will play a vital role in building back better from COVID-19.

“These innovative and ambitious plans will unlock jobs, opportunities and sustainable growth for communities throughout the region.

“The UK Government has committed more than £1.5bn to growth deals across Scotland to secure our future prosperity.”

The next stage is for the council and its partners to develop outline business cases that will set out the detail of projects for delivery. Projects will be delivered across Argyll and Bute once the detailed business cases are agreed.