The leader of Perth and Kinross Council is demanding answers after a major jobs and housing project missed out on millions of pounds in Levelling Up funding.
The council had been seeking £10 million from the UK Government fund to support the Perth West scheme.
The Broxden business and housing development is forecast to bring thousands of jobs to the area.
But this week chiefs learned Perth West was not among the latest round of 55 Levelling Up recipients.
It’s the second time this year that it has been snubbed.
And it means Perth and Kinross is now the only Scottish local authority containing a city which has not benefited from the fund.
Council leader Grant Laing said he would be seeking assurances from the UK Government that Perth would not become “Scotland’s forgotten city”.
“This is not about a project that would be a nice addition for Perth,” he said.
“This is about categorically changing the future of the city and the lives of our residents.”
Perth bid discussed with Levelling Up Minister days before announcement
The third round of awards from the Levelling Up fund was announced on Monday.
Six Scottish bids were among the 55 success stories.
However, there was no competitive bidding process this time round.
Instead the UK Government re-examined the unsuccessful bids from round two.
Perth and Kinross Council had previously submitted a request for £10 million towards the Perth West project.
The £500M business park and housing scheme is expected to create around 2,300 jobs. Another 3,000 could come in the construction phase.
Bosses said the money would go towards building an access to the development, and particularly to the Perth Eco-Innovation Park.
They learned in January 2023 that the bid had failed, and had been hoping for a positive outcome at the next attempt.
Mr Laing said he had discussed Perth’s case personally with Jacob Young MP, the Minister for Levelling Up, only last week.
“Following this meeting I also wrote to him directly hoping for a positive outcome in the recent allocations of funds,” he said.
“For reasons unknown to me, Perth and Kinross remain the only local authority area in Scotland containing a city to not receive any funding through this scheme.”
Investment needed to raise Perth wages
The average weekly pay for someone working in Perth and Kinross is £575, compared to the Scottish average of £622.
In order for this to change, Mr Laing said the area needed to provide new opportunities and diversify the economy.
That means a shift away from its historical reliance on tourism, retail and hospitality and towards higher paid, technology-based jobs.
Mr Laing added: “We know that unless we change our economy, people living in Perth and Kinross will have to look further afield for better paid jobs.”
Perth and Kinross councillors approved the Perth West scheme in September.
The project is expected to bring around 1,500 new homes, plus shops, businesses, hotels, a healthcare centre and school, to a 257-hectare site next to Broxden.
The UK Government said priorities were decided using a clear methodology.
Announcing the successful bids this week, Scottish Secretary Alister Jack said: “Our levelling up commitment to communities across Scotland so far stands at almost £2.7 billion.
“We are focused on working with local partners to deliver the change that the country needs to put the UK on the right path for the future.”
Conversation