Capital investment for regeneration

Our regeneration strategy focuses on making the most of Scotland's communities' economic potential through targeted funding.   

Regeneration Capital Grant Fund (RCGF)

The Regeneration Capital Grant Fund, delivered in partnership with COSLA and local government, supports locally developed place based regeneration projects that involve local communities, helping to support and create jobs and build sustainable communities.

Applications to the fund are made on an annual basis and, where justified, can potentially cover more than one financial year (subject to available budget).

Call for applications (round 8)

The call for first stage applications for projects that can start in 2021-2022 closed on 19 June 2020. The Regeneration Capital Grand Fund Investment Panel met on the 20 August 2020 and have invited 45 projects to submit full applications to stage 2.

View the list of project successful at stage 1.

Stage 2 documentation

Projects that have been successful at being invited to stage 2 can download the application form and guidance.

The deadline for stage 2 applications is 14:00 on Thursday 5 November 2020. 

The application process follows this indicative timeline:

  • stage 1 applications deadline (project summaries) - June 2020
  • investment Panel meeting stage 1 - August 2020
  • applicants notified of results (invited/not invited to stage 2) - September 2020
  • stage 2 applications deadline (full project proposals) - November 2020
  • investment Panel meeting stage 2 - December 2020
  • recommendations approved by SG Ministers/COSLA - December 2020
  • notification to all applicants of funding recommendations - January 2021

The available budget for RCGF in 2021-22, and into the next parliamentary term, will be subject to our budget setting processes and priorities.

General information on the fund

Eligible organisations

The fund is open to all 32 Scottish local authorities individually, or whether they exercise their functions through urban regeneration companies (URCs) or other special purpose vehicles (SPVs).

Eligible projects

Applications are not restricted in geography, size or type of project. It will be for applicant organisations to demonstrate that projects fit with the aims and objectives of the fund and can demonstrate clear regeneration outcomes in line with our strategy document Achieving a Sustainable Future and local area regeneration plans.

Project focus

  • projects that primarily focus on areas that suffer from high levels of deprivation and disadvantage
  • projects that demonstrate clear community involvement
  • projects that will deliver large scale transformational change with strong regeneration outcomes
  • projects and programmes that can encourage additional investment and address market failure

Application process

All applications will be subject to scrutiny by the Regeneration Capital Grant Fund Investment Panel which will make final recommendations on projects to be funded.

There will be a two-stage assessment. Applicants must submit a summary of their project on the form provided at stage 1. Successful projects at this stage will be invited by the panel to then complete a full stage 2 application.

Projects supported from previous calls

The projects funded to date are supporting or creating jobs, refurbishing and bringing back into use a number of historic and landmark buildings, creating business space, and supporting numerous community facilities across Scotland. 

View the full list of RCGF projects supported from 2014 to 2020.

Additional funding for projects 2020-2021

On 16th June 2020, the Cabinet Secretary for Finance announced a £230 million Economic Recovery Stimulus Package, funded by the reallocation of capital underspends from schemes interrupted by COVID-19. £12m was agreed to be used to bring forward the delivery of a number of established RCGF projects as to accelerate the approval and delivery of a new projects for this year which were ready to progress. View a list of those projects in receipt of this funding.


December 2018, we commissioned Research Scotland to undertake an independent evaluation of the Regeneration Capital Grant Fund (RCGF) and the final report which was published on 20th December 2019. 

Investment panel

The Regeneration Capital Grant Fund Investement Panel includes the following members:

  • David Cowan, Scottish Government (Co-Chair)
  • Calum Lindsay, COSLA (Co-Chair)
  • Richard Cairns, Local Authorities, SOLACE (Chief Executives) 
  • Bryan McGrath, South of Scotland Enterprise 
  • John McCrone, Local Authorities, Scottish Local Authorities Economic Development Group 
  • Robert Emmott, Local Authorities – Directors of Finance
  • Beverly Smith, Local Authorities – Heads of Planning
  • Lynne Ward, Scottish Futures Trust
  • Douglas Cowan, Highlands and Islands Enterprise 
  • Gillian Adam, Scottish Enterprise 
  • Robert McDowall, SURF (Scottish Urban Regeneration Forum)

More information

If you have any questions on the fund, email them to Enter 'request for further information' in the subject heading.

Scottish Partnership for Regeneration in Urban Centres (SPRUCE)

SPRUCE was originally launched in 2011 as a £50 million fund that offers loans and equity investments to revenue-generating infrastructure and energy-efficiency projects to support regeneration in eligible local authority areas in Scotland.

One of SPRUCE's major benefits is that funds once repaid will be recycled and can be used for future regeneration projects. Alongside additional contributions provided by the Scottish Government, SPRUCE is now able to support eligible projects right across Scotland with more than £112m invested in 16 projects

See the list of 16 SPRUCE-supported projects.

As well as the infrastructure delivered, all contractors include Community Benefits in Public Procurement clauses in contracts and so provide jobs and training opportunities for local people.

Interim evaluation of SPRUCE

An interim evaluation of the SPRUCE fund was carried out in 2017. The SPRUCE interim evaluation: final report presents a set of findings and recommendations based on the economic, social and environmental impact of SPRUCE within the context of the policies and strategy that were initially established, and also on the value for money offered by SPRUCE in contrast to traditional grant funding and other approaches to addressing market failure.

The Vacant and Derelict Land Fund

The Vacant and Derelict Land Fund (VDLF) aims to tackle long-term vacant and derelict land in Scotland. Its objectives are:

  • to stimulate economic growth
  • create jobs
  • promote environmental justice and improved quality of life
  • to support communities to flourish and tackle inequalities

It is an element of the local government budget settlement, as agreed with Scottish Government.

It focuses on projects that promote innovation in both temporary and longer term greening techniques for vacant and derelict land sites.

For 2020-21, five local authorities will receive a share of £7.605m reflecting the extent of vacant and derelict land in these areas and levels of deprivation. These local authorities are: 

  • Glasgow City Council
  • North Lanarkshire Council
  • South Lanarkshire Council
  • North Ayrshire Council
  • Fife Council