Funding gap for flagship projects

Perth and Kinross Council is facing a near £21 million funding gap to move forward with its five flagship capital projects.

But the most controversial - the Cross Tay Link Road - has no gap, acording to council papers.

A PKC statement said the road will enable nearly £1 billion in private sector investment in the region and allow the development of over 12,000 new homes.

A cumulative £20.9 million potential funding gap has been identified for the council’s four other less expensive and less controversial capital projects.

The report by PKC’s chief executive Karen Reid and head of finance Stewart MacKenzie later explains construction costs are estimates and actual constructions costs may be higher or lower than anticipated.

Councillors will meet on Wednesday, September 30 to discuss the five main capital projects - the CTLR; the replacement of Perth High School, Blairgowrie Recreation Centre and North Muirton/Balhousie PS, as well as the redevelopment of Perth City Hall.

Details around all five projects are included in an update from officers on the Investment Blueprint and Capital Budget 2020/21 - 2028/29.

The setting of the capital budget was delayed by the knock-on effect of the general election in December 2019 and then the onset of the COVID-19 pandemic.

The five main capital projects make up 32 per cent of the allocation of gross capital budget for 2020/21-2028/29.

PKC has received a draft offer grant letter from Transport Scotland of £40m for the CTLR. The paper also outlines a prediction the road will generate around £17m in developer contributions over the course of 20-25 years. It also says it will enable the development of 12,207 homes - 25 per cent of which will be affordable - which will generate over £10m in additional annual council tax revenue.

But the road is not without controversy. The Scottish Greens launched a Stop the Cross Tay Link Road plans petition which, to date, has attracted 125 signatures.

Meanwhile the Perthshire Chamber of Commerce has pleaded with councillors to press ahead with plans saying the route is vital to protect the future growth of Perth and the surrounding area.

Council leader Murray Lyle said: “These five exciting capital projects are not just key to our continued economic growth and sustainability, they will bring lasting benefits for all our residents.”

The Conservative leader said the CTLR was “pivotal” to the region’s future.

He said: “Standing still is not an option and the CTLR is pivotal to our ambitions for the future of Perth and Kinross so it continues to be a place where people want to live, work and invest for years to come.

“It will deliver an enormous economic boost to the area in terms of new housing, and subsequent council tax receipts, and new employment.”