North-east councils in race against time to spend 'spare' £20m before government snatches it back

Press and Journal

13-05-2025

North-east council chiefs are scrambling to beat the clock by unlocking a £20 million cash boost pledged to the region almost a decade ago.
The housing infrastructure fund was created for the north-east in 2016 alongside the 10-year Aberdeen City Region Deal.
It was designed to be spent on works to kick-start affordable housing projects. But it has been gathering dust ever since it was announced.
With just one year to go until the deal comes to an end, councillors in Aberdeen City and Aberdeenshire fear time is running out.
Members of the Aberdeen City Region Deal joint committee met recently to discuss the pot of money and how they could use it to benefit residents… If only they could get their hands on it.
Councillors have asked for clearer guidance on what the money could be used for as they hope it could assist with the ongoing Raac crisis in Torry.
The committee were told that the £20m housing infrastructure fund is there to 'unlock difficult sites that are of strategic importance'.
City council strategic place planning officer David Dunne told members that the local authority had 'limited success' when trying to crack open this particular piggy bank.
He revealed that three applications had been made but all of them were unsuccessful.
However, Mr Dunne admitted it was 'more challenging within the city' to unlock the cash due to the nature of infrastructure.
'The two local authorities haven't been successful but that hasn't been for want of trying,' he added.
'If we were allowed to use it for affordable housing we could deliver more housing, we've a proven track record in that regard.'
The officer explained that the £20m fund could help to build around 200 new affordable homes.
Meanwhile, a number of 'key' applications for funding by Aberdeenshire Council were knocked back.
Requests for sites in Balmedie, Blackdog, Ellon, Fraserburgh, Mintlaw and Peterhead were all denied.
The local authority's head of planning, Paul Macari, said: 'We have written to the government requesting feedback and guidance as to how to apply.
'When both councils have approached the government with regards to this funding, our endeavours have been unsuccessful and the feedback is always that we haven't met the eligibility criteria.
'It's a frustration of officers that we can't seem to unlock a lot of this funding.'
Aberdeenshire Council leader Gillian Owen noted that the local authority had 'consistently' sought clarity on why its applications were being rebuffed.
'The £20m that is sitting there, it just looks as if we haven't bothered,' she stated.
Aberdeen housing chief, councillor Miranda Radley, wanted to see action taken: 'I'm very conscious that we have a declared housing emergency within the city.
'We have difficulties providing affordable housing for our citizens across the region and this is a strategic fund that we are not able to access.
'I'm concerned that we are a year out of the deal finishing and we are no closer to accessing that £20m.'
Their worries were echoed by Aberdeen City Council co-leader Christian Allard who said it was 'extremely frustrating' the £20m fund had not been used yet.
Both councils will now join forces and write to the Scottish Government and request a meeting to discuss the criteria and seek to unlock the crucial cash.
A Scottish Government spokesman explained that the funding allocated depends on proposals coming forward from local authorities.
He said: 'Scottish Government housing officials have provided regular advice and guidance to both Aberdeen City Council and Aberdeenshire Council.
'To date, no proposals which meet housing infrastructure fund criteria have been forthcoming from either local authority.
'We continue to urge the UK Government to make additional funding available but to date they have refused to do so.'