What is the Rural Growth Deal?

The Rural Growth Deal (RGD) is a 10-year programme that will deliver £70 million of investment to develop ߣsirÊÓƵ and Bute’s economic potential into a successful future for the area.
The Scottish and UK Governments have each allocated £25 million to the programme, and the council and its partners will contribute at least £20 million of match funding.
What will it achieve?
The RGD will create opportunities for people living in ߣsirÊÓƵ and Bute and attract future investment by increasing productivity, growing the working-age population, addressing key infrastructure and skills gaps and delivering a more inclusive economy. Through the programme, we aim to:
- Deliver at least 300 additional jobs
- Create 6,500 m2 of new business space
- Deliver training opportunities to over 6,000 students and individuals
- Support local businesses to thrive
- Construct new housing and worker accommodation to help address the local housing emergency
- Generate over 70,000 additional visitors to the area per annum
How will this happen?
The programme brings together partners committed to delivering inclusive economic growth. We consulted our communities and partner organisations to put together a list of proposals based on achieving three things:
- Connecting: our high-value business sectors with national and international business markets; our local economic successes with national strategic priorities
- Attracting: additional skills, training and learning opportunities; new residents, visitors and businesses
- Growing: doing more of what works and making more of our natural and built resources
Investment themes
Our RGD proposals are about placing investment where it will best develop ߣsirÊÓƵ and Bute as a successful region and economic driver for Scotland and the UK. Our proposals are underpinned by the RGD’s seven investment themes:
- Tourism – Creating a World Class Visitor Destination
- Creating a Low Carbon Economy
- Rural Skills Accelerator Programme
- Housing to Attract Economic Growth
- Clyde Engineering and Innovation Cluster
- West Coast UAV Logistics and Training Hub
- Marine Aquaculture Programme
From these themes, we identified the following projects:
Project | Project Details | Projected start date |
---|---|---|
Rothesay Pavilion |
The RGD will provide £9m of funding to support the internal fit-out of the renovation and refurbishment of the Grade A Listed Rothesay Pavilion. The RGD will provide £9m of funding to support the internal fit-out of the renovation and refurbishment of the Grade A Listed Rothesay Pavilion. The transformation is about developing the Pavilion as a top cultural tourist destination for Scotland, a local jobs provider for Bute, and a modern-day resource for residents and visitors to Bute. As well as a major tourist attraction, the Pavilion is being developed as a leisure, culture and entertainment hub for local communities, and a driver for the local and wider economy When completed, the Pavilion will include an events space, office facilities, the refurbished caretaker’s house, flexible exhibition space, craft retail/café space, dressing rooms, young people’s studio, and outdoor spaces.
|
2024/25 |
Kintyre Sea Sports |
The RGD will provide funding of £2m for a new water sports hub on Campbeltown Loch, creating an outstanding natural destination for sailing and other water sports. KSS currently operates from Campbeltown Sailing Club; however, this facility no longer meets the required standards to sustain the increasing demand in the wide variety of water sports that exist in the community. The proposed new development will see the existing site redeveloped to form a two-storey building that will house changing facilities, space for learning, offices, a community café, a kitchen, and a range of storage space. |
2025/26 |
Project | Project Details | Projected start date |
---|---|---|
Business Skills | This project will provide £500k of revenue funding from the Scottish Government for a programme of leadership skills training for current and future business and community leaders in ߣsirÊÓƵ and Bute so they can benefit from and contribute to the transformational opportunities from Rural Growth Deal Investment. This element of the RSAP is being led by Highlands and Islands Enterprise (HIE) and focuses on leadership interventions that will cover the whole of ߣsirÊÓƵ and Bute. | 2025/26 |
STEM Hubs |
Creating new Community STEM Hubs within the RGD will provide a platform for STEM engagement opportunities for people of all ages in ߣsirÊÓƵ and Bute. £2.5 million funding from the Scottish Government will deliver modern, aspirational facilities for online (remote) and face-to-face learning. The RGD will also create two physical STEM Hubs – one in Dunoon and one within the European Marine Science Park near Oban. |
2026/27 |
UHI ߣsirÊÓƵ Estate Enhancements |
This project will provide £1.5 million of funding from the Scottish Government to support UHI ߣsirÊÓƵ’s campus enhancements at their Construction, Engineering, and Renewables Centre (CERC) in Lochgilphead. The proposal seeks to expand the scope of UHI ߣsirÊÓƵ’s STEM curriculum, and significantly increase student volumes at the organisation’s construction and engineering hub in Lochgilphead to meet regional and national skills needs, maximise job opportunities aligned with emerging technologies, tackle the Climate Emergency and support the Just Transition to Net Zero. |
2028/29 |
Project | Project Details | Projected start date |
---|---|---|
Islay Low Carbon Economy | The RGD will invest up to £3 million, with £1.5 million from both the Scottish Government and UK Government, to fund the delivery of low carbon infrastructure to support the island’s pathway to net zero. The RGD presents an opportunity for public sector investment that will create an impactful change for the community. The island is also one of six included in the Scottish Government’s Carbon Neutral Islands (CNI) programme. | 2032/33 |
Project | Project Details | Projected start date |
---|---|---|
Isle of Mull – Enabling Worker Accommodation Isle of Islay –building our island communities |
The RGD Housing proposals will be supported with an investment of up to £3 million from the Scottish Government. The focus of this investment will be Mull and Islay. Both islands have experienced pressure in the local housing market due to above average construction costs, lack of private housing construction, and competing demand from high levels of second home ownership and holiday accommodation. These islands have also seen growth in local employment sectors such as tourism, aquaculture, and distilling; however, local workers and residents find it difficult to access accommodation, creating local recruitment challenges. The council will work with key stakeholders, developers, and community groups to explore innovative housing pilots to help provide local workers access to affordable, high-quality homes. |
2025/26
2029/30 |
Project | Project Details | Projected start date |
---|---|---|
Colgrain | The Clyde Engineering and Innovation Cluster (CEIC) project will be supported with investment of up to £7 million from the UK Government. Expansion of HM Naval Base (HMNB) Clyde through the Maritime Change Programme (MCP) provides the impetus for this project. The MCP will consolidate the UK’s submarine fleet and all its support services to HMNB Clyde, and the RGD provides a unique opportunity to support this and maximise the local economic benefits. This project will deliver new, modern commercial business space and will represent Phase 1 of a potential business and engineering cluster at the Colgrain business park site near Helensburgh. | 2030/31 |
Project | Project Details | Projected start date |
---|---|---|
UAV Hub at Oban Airport |
The West Coast UAV Logistics and Training Hub project will be supported with investment of up to £4 million from the UK Government. This project will involve investing in new business park infrastructure at Oban Airport to allow it to become a leading research and development centre for UAV technologies, building on the success of recent pioneering trials using drone technology to provide essential services to some of Scotland’s most fragile rural and island communities. The investment will deliver Scotland’s first specialised drone training and research centre. It will also provide state-of-the-art hangars with maintenance facilities for UAVs and general aviation aircraft. |
2032/33 |
Project | Project Details | Projected start date |
---|---|---|
Machrihanish Innovation Campus |
This project will be delivered by the University of Stirling, supported by an investment of £3.8 million from the UK Government. The RGD investment will enable research and development facilities to be upgraded at MIC to improve water quality, tank capacity, power and fresh water supplies, provision of a controlled laboratory environment and disease challenge facilities. These improvements will provide the facilities required to extend research and development opportunities for visiting researchers, students and other site users. MIC will continue to support growth in the blue economy by increasing high-value jobs both directly through the additional research and support staff required and also by enabling the expansion of existing companies and the creation of new businesses through start-ups. |
2027/28 |
SAMS Centre for Seaweed and Shellfish Innovation and Development |
The Centre for Seaweed and Shellfish Innovation and Development (C-SSIDe) will be led by the Scottish Association for Marine Science (SAMS) and supported by an RGD investment totalling £3.33 million, with £1 million from the Scottish Government and £2.33 million from the UK Government. This project will create a platform for industrial innovation that will allow a direct commercialisation of the world-leading research expertise at SAMS to catalyze growth in the area’s high-value seaweed and shellfish industries, underpinning a diversified aquaculture system development. The new facility will be located within the European Marine Science Park and will provide the necessary capability to upscale Scotland’s seaweed and shellfish industries, particularly higher value species, at the same time as enabling the development of industry through access to state-of-the-art research and development facilities. |
2028/29 |
Marine Industry Training Centre |
UHI ߣsirÊÓƵ will deliver this project with £6 million of funding from the Scottish Government and £1.83 million from the UK Government. This investment will create a new state-of-the-art education and training facility to provide an inspiring and engaging environment for students, staff, and business customers. It will support the growing aquaculture industry (currently worth £3.6 billion) and will directly and indirectly address the population decline and help to create local and regional employment opportunities. |
2027/28 |
*Please note: Project start dates are subject to the approval of full business cases by the Scottish and UK Government. They also depend on securing match funding necessary to meet funding gaps.
Next steps
The Council, UK and Scottish Governments agreed the ‘Heads of Terms’ on 11 February 2021. This sets out the general areas for investment.
You can read the Head of Terms Agreement here
The next milestone will be the signing of the Full Deal Agreement.
The council and its Rural Growth Deal partners are developing projects and Full Business Cases are required to be endorsed by Government prior to Rural Growth Deal funding becomes available for use. In order for Full Business Cases to be endorsed, the projects will all require have to have been to tender, addressed any funding gaps, have all consents and permissions in place and have a plan in place for construction and operation.
The Rural Growth Deal programme is expected to be delivered over a 10 year period. This is currently programmed to be from 2024/25 to 2033/24.
Find out more
Read some of the comments from the consultation: Public backing for a
rural growth deal for ߣsirÊÓƵ
Read our Rural Growth Deal proposals: Areas for investment
Answers to some questions you may have: Questions and answers
Progress updates
See the latest progress updates here:
- Progress update - December 2024
- Progress update - September 2024
- Progress update - March 2024
- Progress update - December 2023
- Progress update - September 2023
- Progress update - May 2023
- Progress update - January 2023
- Progress update - March 2022
- Progress update - June 2022
- Progress update - September 2022
