Perth and Kinross councillors have expressed their disappointment over Perth having its £5m of Levelling Up funding withdrawn by the UK Government.
Councillors learned of the funding withdrawal on Wednesday as Chancellor Rachel Reeves delivered Labour’s budget for the UK. The £5m was originally allocated to support three city centre projects in Perth, including the creation of a visitor attraction at Lower City Mills, an exhibition space at The Ironworks, and a High Street outlet for micro-producers.
Council leader Grant Laing described the decision as “short-sighted,” stating: “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.”
Deputy council leader Eric Drysdale expressed his dismay, saying: “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Levelling Up money previously earmarked to fund important projects to help regenerate Perth City Centre has today been withdrawn by the UK Government.”
In contrast to Perth’s disappointment, Drumchapel has received confirmation of £14,637,600 in Levelling Up funding for its town centre regeneration project. Jacob Young MP, Minister for Levelling-Up, announced the award, which will support the second phase of Drumchapel’s regeneration efforts.
The withdrawal of Perth’s funding has sparked criticism across party lines. 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“It’s extremely disappointing to hear that the £5m that was so hard won by Perth and Kinross for Perth City has been withdrawn.”
Mid Scotland and Fife Conservative MSP Murdo Fraser called the decision “disgraceful,” stating: “This was vital funding that would have helped make community projects in Perth a reality.”
Liberal Democrat group leader Peter Barrett described it as a “body blow” to Perth City and Perth and Kinross, calling it a “£5m slap in the face by the UK Labour government.”
Despite the setback, Perth and Kinross Council remains committed to its regeneration plans. Council chief executive Thomas Glen said: “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.”
