Investing in community regeneration

Projects to unlock economic growth and tackle poverty

Projects across Scotland will benefit from Scottish Government investment to help regenerate communities and drive economic growth.

More than £21.5 million from two Scottish Government funds will bring 24 disused or derelict sites and buildings into use, creating more than 160 jobs and support nearly 900 training opportunities.

Deputy First Minister Kate Forbes confirmed the 2025-26 allocations from the Regeneration Capital Grant Fund (RCGF) and Vacant and Derelict Land Investment Programme (VDLIP) during a visit to Powderhall in north Edinburgh.

City of Edinburgh Council will receive £1.4 million for remedial works at the former waste disposal site, paving the way for a housing-led regeneration project that will provide 259 homes, including affordable housing.

There’s also £60,000 for Spartans’ youth facility at Ainslie Park.

Other initiatives being supported include:

  • reviving a slate quarry in Cullipool owned and operated by the Isle of Luing Community Trust
  • converting a former tram depot in Dundee into a new transport museum
  • redeveloping a former derelict school into energy efficient housing units in Borrodale on the Isle of Skye
  • creating film production suites and a training centre at a former glue factory in Glasgow
  • extending Lochvale House community centre in Dumfries to include a café and soft play area

The announcement coincides with a call for expressions of interest in 2026-27 funding to support regeneration projects in disadvantaged communities. As set out in the 2025 Programme for Government, future Scottish Government support for regeneration projects will be channelled through one national fund – the Regeneration Capital Grant Fund – to streamline the application and delivery process.

The Deputy First Minister said: “This funding will help to transform derelict sites the length and breadth of Scotland, creating homes, jobs and facilities that drive economic growth, tackle poverty and help support and growing thriving communities.

“This funding forms part of a wider £62.15 million investment by the Scottish Government towards regeneration projects in 2025-26. This will help to revitalise green spaces, town centres and derelict sites to benefit people across Scotland.

“The 2025 Programme for Government stets out our renewed commitment to supporting regeneration projects across the country with one streamlined fund delivering this vision from next year.”

The RCGF is delivered in partnership with COSLA. COSLA’s Spokesperson for Environment and Economy, Councillor Gail Macgregor, said: “Today’s announcement sees the return of invaluable tools and resources for local authorities to help deliver on the regeneration aspirations of the communities which they represent.

“The diversity of successful projects on show demonstrates how localised approaches can deliver benefits across the country and showcase the best of partnership between local authorities and our communities to deliver economic and social renewal.

“We look forward to continuing to work with Scottish Government on regeneration in the months to come.”

City of Edinburgh Council’s Housing, Homelessness and Fair Work Convener Lezley Marion Cameron said: “Our development plans at Powderhall are breathing new life into an excellently located, long unused industrial site, and are set to deliver hundreds of much-needed new homes and work and community spaces too.

“The transformation of Powderhall is already well underway with the restoration of the former stable block, which retains unique heritage features of the site’s former use.   

“Regenerating a historic, brownfield site like Powderhall is complex, challenging, and costly therefore I warmly welcome this Scottish Government investment.”

Regeneration Projects supported through the RCGF and VDLIP fund in 2025/2026:

FundOrganisationProjectAward
RCGFAngus CouncilArbroath Courthouse Community Trust£2,138,985
RCGFArgyll & Bute CouncilFyne Futures Local Food Production and Training Centre£250,000
RCGFArgyll & Bute CouncilIsle of Luing Community Owned Slate Quarry£1,747,936
RCGFCity of Edinburgh CouncilSpartans Youth Work and Education Building£60,000
RCGFClyde GatewayBaltic Street Play£850,000
RCGFDumfries and Galloway CouncilLet’s Get Sporty – Lochvale House£1,572,370
RCGFDundee City CouncilDundee Museum of Transport – A Catalyst for Regeneration of Stobswell£1,001,430
RCGFFife CouncilTogether Cowdenbeath People’s Centre£1,000,000
RCGFGlasgow City CouncilSEC Possilpark£600,000
RCGFGlasgow City CouncilGlue Factory£398,169
RCGFHighland CouncilGlen Urquhart Public Hall£602,500
RCGFInverclyde CouncilBank St. Community Hub£515,000
RCGFSouth Lanarkshire CouncilCathcart Road Net Zero Industrial Units£963,000
VDLIPCity of Edinburgh CouncilPowderhall Housing-Led Regeneration£1,400,000
VDLIPClyde GatewayCuningar Loop Woodland Park Completion£500,000
VDLIPDumfries and Galloway CouncilAnnan Harbour Regeneration – Phase 1£1,343,683
VDLIPDundee City CouncilPlacemaking Lochee£695,000
VDLIPEast Dunbartonshire CouncilLennoxtown Community Greenspace Project£472,952
VDLIPGlasgow City CouncilMilton Discovery Wood£655,200
VDLIPGlasgow City CouncilTureen Street School Conversion£1,978,441
VDLIPHighland CouncilBorrodale School Renovation Project£450,000
VDLIPNorth Ayrshire CouncilKyle Road Phase 2 Development£892,990
VDLIPNorth Lanarkshire CouncilCumbernauld Village Green-Blue Space£735,770
VDLIPRenfrewshire CouncilFerguslie Green Line – Belltrees£650,436

£25 million for regeneration projects

Go-ahead for Granton Station and Nourishing Leith Hubs

More than £25 million is going to disadvantaged and remote communities around Scotland to support regeneration and employment projects. Two Edinburgh projects, Granton Station Enterprise Hub (above) and Nourishing Leith Hub, will receive funding of over £2.2 million.

The money from the Regeneration Capital Grant Fund (RCGF) will go to 26 projects all over Scotland to tackle inequalities and deliver inclusive growth.  

Over 400 business and organisations will benefit from the projects which will support or create more than 1220 jobs as well as thousands of training places by refurbishing and bringing back into use 26 empty buildings to provide space for community enterprises.

Communities Secretary Aileen Campbell said: “Together with COSLA we have invested almost £200 million through this fund since 2014 in support of locally-led regeneration projects which help to build the resilience and wellbeing of communities. I am pleased that a further 26 projects will benefit from the fund as we look to a period of recovery from the COVID-19 pandemic.

“We have had to lead our lives locally, pulling together more as communities, to see off the many challenges arising from coronavirus. This latest round of investment into local projects continues our ongoing support for vibrant and accessible town centres and communities.”

Earth in Common (formerly Leith Crops in Pots) were delighted to hear that their funding application has been successful at last. The Leith initiaitve recieves £944,744.

A spokesperson for the community project said: “Our team are over the moon with this news today! After many years and huge effort we finally done it. Our pixies went on one small outing today and look what they managed to achieve. Must have been all that fairy dust. They ‘Saved the PAV’!”

COSLA’s Environment and Economy spokesperson Councillor Steven Heddle said: “This work has never been more important as we look to rebuild from the devastating impact of COVID-19. Recovery from the virus must be fair to our communities and promote inclusivity, growth and wellbeing.

“The innovative projects announced today can empower our communities to deliver better places to live and work.”

While many of the awards are for projects based in urban areas, there’s funding for initiatives in some far-flung communities too

Among the projects being funded this year is The Old Clyne School Redevelopment Project in Brora, Highland. It will redevelop a derelict C-listed building to become a community-owned museum and heritage centre, and to be a base for the Clyne Heritage Society.

Dr Nick Lindsay, Chairman of the Clyne Heritage Society said: “This is the best news that we could have hoped for, in what has been a very difficult year. This should unlock the final ‘brick-in-the-wall’ funds from other funding partners, so we can deliver this major development for Brora.

“We can now fulfil our dreams by regenerating the Old Clyne School into a must-visit destination, transforming a current eyesore into a welcome attraction for the whole community and future generations.”