Councillors disappointed as £5m Perth levelling up funding withdrawn by UK Government in Autumn Budget

Perth and Kinross councillors have expressed their disappointment Perth has had its £5m Levelling Up funding withdrawn by the UK Government.

Councillors learned the news as they gathered in the chambers for a meeting on Wednesday, October 30 at the same time chancellor Rachel Reeves delivered Labour’s budget for the UK.

The previous Conservative UK Government’s Department of Levelling Up, Housing and Communities had allocated £5m to support three city centre projects in Perth city centre.

The projects – creating a visitor attraction and office space at Lower City Mills, creating an exhibition and retail space at The Ironworks and a High Street outlet for micro producers – were hoped to support culture and regeneration in Perth’s city centre.

The council’s SNP deputy council leader broke the news to councillors gathered in the chamber.

Deputy leader Eric Drysdale said: “It is with significant disappointment that I can confirm to council we have been notified within the past hour that the £5m Levelling Up money previously earmarked to fund important projects to help regenerate Perth City Centre has today been withdrawn by the UK Government.”

Council leader Grant Laing described the decision as “short-sighted”.

The SNP leader said: “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.

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

“We will look to see if other sources of funding is possible for these three projects and continue our ongoing efforts to regenerate Perth city centre.”

Local Conservative politicians were equally disappointed.

Conservative group leader John Duff said: “It’s extremely disappointing to hear that the £5m that was so hard won by Perth and Kinross for Perth City has been withdrawn.

“I hope that in whatever comes and replaces Levelling Up funds that Perth will be given a priority.”

Mid Scotland and Fife Conservative MSP Murdo Fraser said: “The decision by the Labour government to withdraw the Levelling Up funding is disgraceful and is a bitter pill to swallow.

“This was vital funding that would have helped make community projects in Perth a reality.

“It would also have directly empowered Perth and Kinross Council by giving the money to them, which is exactly what our councils need after years of savage SNP cuts to their budgets.”

The council’s Liberal Democrat group leader described it as a “body blow” for the Fair City.

The Perth City Centre councillor said. “This is a body blow to Perth City and Perth and Kinross. It is a £5m slap in the face by the UK Labour government.

It was a ‘too little too late’ gesture by the outgoing Conservative government who repeatedly turned down Perth’s bids for Levelling Up funding.”

The council’s chief executive Thomas Glen also described the news as “extremely disappointing”.

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

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

“Consultation on the Perth City Centre Design and Development Framework, which sets out our ambitions for the city, will begin in November.”

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

“But in the grander round of things there is £3.4bn 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.”