Investing in community regeneration

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.

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."

Background

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