Concerns raised over deal spending power
Delays, inflation and cost increases to City Region Deal
Stirling politicians have expressed concern over the status of the flagship Stirling and Clackmannanshire City Region Deal, after fresh figures revealed a 40 per cent reduction in spending power due to delays, inflation and projected cost increases.
The deal was agreed between the UK and Scottish Governments in February 2020.
But SNP politicians are worried that it won’t now deliver as much as was originally hoped, particularly in the wake of the recent cancellation of a £10million National Tartan Centre, a central project in the overall scheme.
Stirling SNP Council Group Leader Scott Farmer said: “The City Deal was, and still is, a fantastic opportunity to invest in Stirling’s future.
“However the longer projects take to get off the planning board and into being, the more they’ll cost and the less bang for our buck we’ll get.”
Stirling MP Alyn Smith said: “It’s been four years since this deal was signed, and many folks around Stirling will be scratching their heads wondering what it has achieved thus far.
“Whilst we should all appreciate the world has vastly changed since February 2020, with the pandemic, Brexit and the war in Ukraine all bearing down on ambitions, we’re at real risk of squandering this golden opportunity.”
At a recent full meeting of Stirling Council, SNP councillor Gerry Mclaughlan described the cancellation of the Tartan Centre as “disappointing” and asked council leader Chris Kane to confirm “that the delay in progressing this project and the impact that delay had on the finance available was a significant contributory factor”.
Councillor Kane said: “Work on the development of the outline business case for the project concluded at the start of 2024. This was in line with City Region Deal governance process and the programme milestones agreed with Joint Committee, UK Government and Scottish Government.
“The outline business case (OBC) process identified a construction capital funding gap of £13.8million not including the public realm development of the site.
“A revenue funding gap of £7million over a 25 year period was identified for the operational, maintenance and life-cycle costs of the building.
“These costs do not include the additional costs that would be required for the provision of collections, displays and loans.”
In April, Stirling and Clackmannanshire City Region Deal Joint Committee on April 18 agreed that the Tartan Centre would be removed from the City Region Deal Programme and a report with options for an alternative project be brought back to committee for consideration prior to submission to the UK and Scottish Governments.
Councillor Mclaughlan told the full council meeting: “If you look at the business plan it talks about numerous sites at the beginning and that was narrowed down to three sites.
“Two of those sites were discarded as unsuitable so we were then left with a newbuild at the Engine Shed at a cost of £21million.
“I do find it strange considering that this council was looking at relocating into the centre of the town at a cost of £1.2million for a building, it does seem strange in comparison to a building of £21million. Then there’s the problem of the lack of progress entirely on this project.
“We’ve now lost 40 per cent of the value. The £10million is now only worth £6million.
“If the Tartan Centre was a visitor centre, it was going to be a reason for people to visit Stirling and be a much needed draw into the town centre.
“Can we get some reassurance that progress of the next project is quicker than the tartan centre and secondly that city centre projects are given primary consideration in any substitute project?”
Councillor Kane said: “I can’t give that assurance because, in the City Region Deal Joint Committee, a third of the votes are Stirling Council, a third are Clackmannanshire Council and a third are the university, so I cannot go into that room and guarantee anything.
“I continue to work with Councillor Benny [Stirling Conservative group leader] and Councillor Farmer and on this issue we are working well together.
“I think as the three voting members of the City Region Deal Joint Committee it is encumbent on Councillor Farmer, Councillor Benny and I to go in there and best represent Stirling which collectively we are doing.
“But I think we collectively share much of your concerns.
“On the wider point of the City Region Deal we are on track, there are no delays to the progress.
“The City Region Deal is an incredibly complicated governance procedure and series of events that have to be gone through to get anything done.
“Like you, I find that coordinating the three partners along with the UK Government and the Scottish Government is incredibly slow, but I’m not really sure what we can do about that.”