Hours before voting through a 10% increase in Council Tax, councillors met behind closed doors and agreed to give more money to the Rothesay Pavilion project – which has already received £16m from the cash-strapped authority.
Restoration of the A-listed building on Bute was due to be complete five years ago, but work is still underway and costs have now risen to £30m.
Last November the UK government announced that the council would receive £20m in levelling up funding, but more than four months later there is still no indication of this will be spent.
Last month Argyll and Bute Council imposed a 10% council tax increase, despite a freeze being promised by First Minister Humza Yousaf.
Council leader Robin Currie said cuts in funding from the Scottish Government meant the authority faced a £30m hole in its finances – though the tax increase will only raise £6m.
Half an hour before the public budget meeting last month – which saw a bitter split between opposition councillors the ruling coalition of Conservative, Liberal Democrat and some independents – a separate meeting of the full council was held at its headquarters near Lochgilphead.
The press and public were excluded as the meeting contained ‘information relating to the financial or business affairs of any particular person (other than the authority)’.
Afterwards a council statement said: “The council provisionally agreed funding to support the completion of Rothesay Pavilion subject to a follow-up report going to council in May, with updates on additional funding sources and cost implications.”
The council has already given the project £1m in 2020 and £15.1m in 2023 – partly at the expense of restoring Helensburgh’s pier.
A report last year said the restoration still had a £4m funding gap, but the Rothsay Pavilion Charity’s website states: “An additional £15m is needed to transform this magnificent, Bauhaus-inspired, 20th century landmark building into a modern day interconnected 21st century engine for community wealth and island economic regeneration.”
The £20m levelling up funding has to be spent by 2025-26 and it can only be used for capital projects, not to fund day-to-day council services.
A council spokesperson said: “Discussions with the UK Government and the council are ongoing regarding the Levelling Up Partnership Funding.
“Once further details on the process are confirmed this will be made public.
“However, it should be noted that this is a UK Government initiative and not the council.”
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