Official Report 378KB pdf
Our next item of business is a statement by Tom Arthur on Scottish Government investment in Our Union Street and the People’s Palace.
15:03
I welcome the opportunity to update the Parliament on progress and further investment in two significant projects—Our Union Street in Aberdeen and the People’s Palace in Glasgow—both of which will support wider regeneration of their local communities. Our commitments on those projects, which were set out in our manifesto, form part of our commitments for our first 100 days. I will lead on the statement, in which I will reflect on both the Our Union Street project and—on behalf of the Cabinet Secretary for Education, Culture and Gaelic—the People’s Palace commitment, which sits in the culture portfolio.
Although the two projects are located in different cities, they both play an important role in driving place-based regeneration and supporting the physical, economic and social renewal of local communities. Through our regeneration strategy and targeted investment programmes, we are supporting thriving places and regions, which are central to Scotland’s long-term economic success. That is reflected in our commitment of up to £52 million in the 2026-27 budget to accelerate regeneration across the country.
I am pleased to confirm that the Scottish Government will provide up to an additional £600,000 for the Our Union Street campaign, building on our existing funding of £400,000. That will bring total investment of up to £1 million. That funding will complement wider Scottish Government investment in the north-east, including £125 million over 10 years through the Aberdeen city region deal and £13.4 million in regeneration capital investment since 2014.
Union Street has long been the heart of Aberdeen and, like many town and city centres, it has faced significant challenges in recent years. In response, in 2023, local businesses and communities came together to form Our Union Street, a volunteer-led movement aimed at tackling vacancies, improving the streetscape, supporting new businesses and rebuilding civic pride. A defining feature of that initiative has been its strong community engagement. More than 70 local groups were engaged with, more than 500 people attended a major public meeting, and more than 10,000 ideas were generated to help to shape the future of the street.
Three years on, there has been a reduction in the number of vacant units. With support from our £400,000 of investment to date, the project has delivered tangible outcomes, including shop-front improvements, cleaning and maintenance, volunteer mobilisation and stronger partnership working with local organisations and businesses. The Our Union Street team has worked closely with landlords and agents to bring vacant units back into use. Simple interventions, such as cleaning empty premises, have helped to attract new tenants and have created opportunities for new hospitality and commercial activity. There have also been visible improvements to the street itself, including exhibits and makeovers of vacant units that have drawn people back into the centre. I was particularly impressed by the efforts to work with local artists, including the graffiti grannies, a local street art group of over-60s that not only helps to tackle social isolation but has also reinvigorated neighbourhoods with local art.
Our investment has supported innovative digital solutions in reimagining the city. In particular, the introduction of a smartphone app is helping people to engage with the city centre in new ways. Launched last month, the app acts as a guide to local events, gives users exclusive deals at independent shops and has interactive trails uncovering Aberdeen’s lesser-known history and heritage.
Those practical interventions are making a real difference on the ground. Increased occupancy and footfall have helped to reinforce confidence in the city centre as a place to live, work and invest. My officials have already met the Our Union Street team and Aberdeen City Council to discuss delivery of the commitment, and we will ensure that the additional funding builds on existing investment and momentum in revitalising the city centre.
Crucially, the project can complement further action led by the Aberdeen Inspired business improvement district, which is another key player in driving the economic and cultural vibrancy of Aberdeen city centre through initiatives such as the Nuart Aberdeen art festival and the biannual Aberdeen restaurant weeks. In parallel, initiatives such as the award-winning upper floors project, which is being delivered by Aberdeen City Council and the Aberdeen Inspired BID, are addressing long-standing challenges by converting underused upper floor spaces into homes, workplaces and creative hubs. Together, those efforts are helping to revitalise Union Street and breathe new life into Aberdeen’s city centre. They reflect a town centre first approach that we are committed to supporting across Scotland. The work of Our Union Street is something that others can look to and learn from.
Presiding Officer, the additional investment in Our Union Street is about more than physical change. It also sends a clear message that Aberdeen city centre is open for business and committed to attracting investment, talent and new enterprises. It is about supporting communities, strengthening the local economy and fostering a strong sense of place. Our Union Street has already played a key role in that progress and I look forward to seeing what more can be achieved.
I turn to the People’s Palace and winter gardens project, which aims to save a cornerstone of Glasgow’s cultural heritage. The People’s Palace opened in 1898 at the iconic Glasgow Green, with a pioneering vision to create a cultural, educational and recreational community space for the working-class residents of the east end.
At the heart of the People’s Palace redevelopment project is an ambitious vision for the local communities in the east end of Glasgow. The project will use a community-led approach to create a museum by the people, for the people. Inclusion, access and participation will be increased through that approach, and the project will focus on local and national priorities including supporting learning, wellbeing, skills development and net zero. It will reimagine the People’s Palace to create one of the world’s most socially engaged and internationally significant local museums.
The restoration project will also demonstrate the benefits of reusing and adapting historic buildings to ensure that they can thrive again and support the wellbeing of Scotland’s people and the economy. A significantly improved and accessible cultural venue will also make the local area a better place to live and will support local businesses and jobs. It will create new employment opportunities during the redevelopment and beyond.
The project aims to build on the success of the redeveloped Burrell Collection, which generated more than £21 million in economic value in its first year of reopening, and almost £25 million in its second year. It is clear that the renewed People’s Palace will play a pivotal placemaking role in one of Glasgow’s most deprived neighbourhoods. However, the grade-A listed museum is now at risk of permanent closure, and we must ensure that that does not happen. That is why I am pleased to confirm that the Scottish Government will establish a partnership group to support the redevelopment of the People’s Palace, recognising its status as a building of national cultural and historic significance and its role in the regeneration of Glasgow’s east end.
The group will bring together key partners, including Historic Environment Scotland, the National Lottery Heritage Fund, Glasgow Life, Museums Galleries Scotland and Scottish Enterprise, alongside wider sectoral expertise, to work collaboratively with Glasgow City Council in progressing the refurbishment of the People’s Palace and winter gardens. The partnership group will facilitate the sharing of expertise, support the achievement of value for money for the public purse and seek to agree a viable and deliverable funding package, including appropriate match-funding arrangements.
Investing in Our Union Street and the People’s Palace demonstrates our clear commitment to regeneration that is locally led, nationally supported and focused on delivering real change. By investing in our places, we are investing in people, opportunity and long-term prosperity. I am confident that, together, we will continue to build stronger, more resilient communities across Scotland.
We will now have questions. I intend to allow about 20 minutes for questions, after which we must move on to the next item of business.
I draw members’ attention to my entry in the register of members’ interests, as a sitting councillor on Glasgow City Council. I thank the minister for providing advance sight of his statement. I will focus my question on the People’s Palace in Glasgow.
Reform members welcome the announcement, although, as a Glaswegian, I regret that it has taken so long. The images that we saw leaked a few years ago from inside the winter gardens were devastating for Glaswegians. The museum is a pillar of working-class history and heritage for our city, and it is vital. Will the local community therefore be involved in the partnership group that has been announced, in particular the hard-working and dedicated local activists from the Friends of the People’s Palace, Winter Gardens and Glasgow Green group?
Lastly, unless I am mistaken, there is no solid announcement of funding—but then, we do not have a by-election coming up in Glasgow. Will the minister tell Glasgow, therefore, how much the Government will cough up to help the redevelopment go forward?
I highlight that the commitment in Aberdeen was a manifesto commitment—I want to put that on the record to avoid any dubiety or misunderstandings that members may innocently stray into.
However, I welcome the member’s question, which recognises the importance of the People’s Palace and winter gardens, and the fact that it is cherished by many, not only across the east end of Glasgow but across Scotland. Indeed, many members in the chamber will have childhood memories of visiting it, perhaps as part of a school outing.
The member’s two central points were about the funding that the Scottish Government will bring forward and the securing of ongoing community engagement. I want to be clear that the work must be community led—I sought to reflect that in my statement. I want to ensure that the work of the partnership group that we bring together complements that engagement and provides national support for something that is community led. I am open to all suggestions from members to ensure that the voices of communities are heard. Too often, communities, particularly those in places such as the east end of Glasgow, had things done to them, not with them. This is their People’s Palace, and I want to make sure that their voices are not just heard but integral to what comes next.
With regard to funding, there have been challenges, which have been recognised and covered in the media. I want us to sit down and work with a range of partners, recognising that there are many shared interests and funders, to identify an appropriate funding package to make sure that that work can be delivered. With regard to the commitment from the Scottish Government, I will endeavour to keep Parliament up to date.
I welcome the hard work that Our Union Street is doing to re-energise Union Street and the centre of Aberdeen. The project is working along with partners to bring together a shared vision of the future of the city centre.
Can the minister say a little more today about how the Scottish Government will assist with the funding of that regeneration and the delivery of the shared vision that the partners are developing?
I join Mr Marra in recognising the hard work of all those involved in Our Union Street. To date, we have committed £400,000 to the project and, today, I am announcing an additional commitment of up to £600,000, which will mean a total investment of up to £1 million. As I touched on in my statement, my officials have already met local partners, and we will continue to engage.
Having rejoined the regeneration portfolio, which I previously covered, my reflection is that what is of the utmost importance is not what ministers—or even members—think should happen, but is the utilising of the expertise of local communities. When we look at Our Union Street as a model, we see that the involvement of partners such as the chamber of commerce and the BID is integral to the success of the project. We see that in other examples of successful regeneration elsewhere in Scotland. At the heart of that success are community and business voices.
I want to ensure that we are focused not just on the quantum of funding but on maximising its impact. That is about ensuring that we work constructively with local partners to ensure that every pound that is invested has the maximum impact. That will be achieved by having close, ongoing engagement on the ground. I will be happy to keep members updated and to engage with any members who want to discuss the matter further.
For too long, Aberdeen has paid the price for Westminster mismanagement of our energy industry. My constituency is the energy capital of Europe, and it should look and feel like it, so I welcome the significant Scottish National Party regeneration package for Our Union Street. Will the minister outline the wider benefits that he hopes that it will deliver with regard to high street footfall and Aberdeen’s wider economy?
The benefits that will be conferred are significant in and of themselves. An immediate impact can be achieved simply by improving the appearance of an area. For example, dressing a shop front can significantly change attitudes and perceptions. Such simple, small interventions can be impactful in catalysing an investment. I highlighted some of those small interventions in my remarks—the shop-front improvements, cleaning and maintenance of the street, and digital innovation.
Cumulatively, all of that can help to boost confidence, but it creates a multiplier effect because, when one shop becomes occupied and starts trading, that acts as a catalyst for shops next door to become occupied. It draws more people into the centre and, indeed, can help to encourage more residents to move into the centre as well. The investment that has been put in over the past few years, as well as working in partnership, is having a positive impact and we are keen to accelerate that, which is why we are going to provide additional investment of up to £600,000.
The welcome investment in Our Union Street should not simply regenerate buildings but empower communities and ensure that the wealth created by Union Street’s revival is retained locally for the benefit of the people of Aberdeen.
Will the minister commit to ensuring that the investment in Our Union Street is accompanied by practical support for community asset transfers, co-operative enterprise and social economy initiatives, so that the town centre first approach delivers not only physical regeneration but democratic ownership and community wealth building in the heart of the city?
Maggie Chapman raises important points. One of the lessons of regeneration in previous decades has been that, although it is possible to come in with significant capital investment to improve infrastructure and buildings, if there is not accompanying work to rewire local economies, we can sometimes, 10, 15 or 20 years later, find ourselves back at square 1. Regeneration must be about more than coming in and improving just the façade and appearance of an area; it must be sustainable. The points that Maggie Chapman made about retaining the wealth that is generated in a place are crucial in that regard.
This week is Scotland loves local week. The small local businesses that will be populating Union Street and many other high streets the length and breadth of Scotland disproportionately employ and procure locally, and the wealth that they generate therefore remains within their communities.
Such an initiative, which involves working in partnership with the business improvement district, is consistent with community wealth building. Of course, community wealth building is now on the statute book, and we can look forward to its implementation over the course of this parliamentary session.
The deeply cynical timing of this statement—reannouncing money that was promised months ago, £400,000 of which has been repackaged from three years ago, two days before the Aberdeen South by-election—will fool no one. We all know that this statement has been made because the Scottish National Party is hearing on the doorsteps that it is the Scottish Conservatives who stand against the SNP’s catastrophic presumption against oil and gas, who found £10 million for Torry reinforced autoclaved aerated concrete victims and who defend the people of Aberdeen against the disastrous low-emission zone and bus gates.
The chair of Our Union Street, Bob Keiller, has argued that the SNP’s sky-high business rates regime is a significant obstacle to Union Street’s regeneration. Does the minister agree? If so, what concrete action will he take?
I do not know whether the member misheard me. Just in case he missed it, today, we have announced additional investment in Aberdeen. The SNP Scottish Government is investing up to £1 million in the centre of Aberdeen. [Interruption.] I will say that again, because I do not think that Mr Kerr caught it the first time: up to £1 million of investment is being put into the centre of Aberdeen by the SNP Scottish Government. He could at least show some cheer and support that.
I thank the minister for providing advance sight of his statement. Union Street is vital to the local economy of Aberdeen and the wider north-east region, and we want to see it full of life once more, so that the granite can shine.
I welcome the Government’s announced investment, but I agree with Mr Kerr that we must ensure that it does not become too expensive for businesses to remain on Union Street and all our high streets. That is why we need action on non-domestic business rates and to build on the rates relief that the Liberal Democrats secured in the previous parliamentary session. Will the Scottish Government look into reforming business rates to ensure that shops and businesses have a secure future?
Yi-pei Chou Turvey raises an important point about non-domestic rates—in fairness, Mr Kerr did so as well. We recognise some of the challenges that have arisen following the revaluation, which was reflected in the package of reliefs that was brought forward as part of the budget process. From memory, that package now totals in excess of £870 million—that is an £870 million tax cut from this Government to businesses.
However, we recognise that there is more work to do, and we are committed to engaging constructively, including in the process of reviewing our rates system. It is open to all members to make representations to the Scottish Government on those matters ahead of the annual budget process.
Folk tend to go into city centres not because they are city centres, but because of the businesses that occupy them and the events that take place there. Will the minister share with us how the Scottish Government is supporting Aberdeen to tell the story of Union Street and what is happening in the city centre?
Jackie Dunbar raises a really important point. It is about how we utilise retail and hospitality. On a day-to-day basis, there is a functional element to city centres—people need to pop out for a pint of milk and a loaf of bread, so they go into a shop to buy them—but there is also an experiential element, which is about the range of shops, particularly unique ones that are specific to a place, the environment and the interaction between the retail and hospitality offer. That is extremely important.
The other, intangible aspect is heritage—the cultural history and stories of a particular place. Community-led regeneration projects are important because they bring to bear the stories and shared experience of a place.
The Our Aberdeen app is just one example of the work that the Our Union Street team have been involved in. It is an innovative digital tool that has helped to engage the community and showcase the wide range of activity that is taking place across the city centre. It is an outstanding example of using contemporary technology—a digital app—to enable people to fully explore an area’s heritage and to discover the fantastic range of shops and services that are on offer.
I draw members’ attention to my entry in the register of members’ interests: I am a member of Aberdeen City Council.
I am pleased that the Scottish Government is supporting the Our Union Street campaign in Aberdeen. Our Union Street is a tremendous community-led organisation that has become essential in helping to regenerate and reinvigorate the city, especially given the backdrop of the downturn in the oil industry and the many negative impacts on footfall from SNP policies such as the LEZ and bus gates.
My understanding is that the SNP manifesto specifically promised £600,000 extra funding. However, the statement seemed to water that down somewhat by suggesting that the funding is only up to £600,000.
Can we have a question, please?
Yes. Will the minister confirm that Our Union Street will get the full £600,000, or does he see that as a contingent number? If so, on what contingency is it based?
For the avoidance of doubt, the total investment is up to £1 million. The amount will be determined through engagement with Our Union Street to ensure that effective project management systems are in place to maximise the impact of the funding. We have committed to delivering up to £1 million—that is on the table for the Our Union Street campaign.
I welcome the Scottish Government’s ongoing support for the regeneration of Aberdeen and the north-east. Does the minister share my view that community-led regeneration initiatives such as the Our Union Street campaign demonstrate the power of local people to shape the future of their neighbourhoods and that they deserve our full backing here and elsewhere?
I concur entirely with Dawn Black. A powerful point that cannot be stressed enough is the importance of community-led regeneration. Empowering communities and giving them national support is a fundamentally different approach from what prevailed in decades past, when things were done to communities.
Community-led regeneration is not just good in terms of engaging communities in the here and now—it leads to better outcomes. No one knows their place as well as the people who live there. Harnessing that expertise, as the Our Union Street campaign is doing, is leading to the excellent, tangible results that we are seeing.
I remind members who wish to ask a question to press their request-to-speak button.
In 1898, when the People’s Palace was opened, it was declared
“open to the people forever and ever”.
I am sad to say that it has been closed for two years now. However, I pay tribute to the friends of the People’s Palace, who have kept its spirit alive, particularly the pioneering curator, Dr Elspeth King, who passed away in November 2025.
We have been waiting two years. It was due to reopen next year, but a £12 million funding gap that the Scottish Government refused to fill has left the project stalled indefinitely. During the election, the SNP promised Glasgow all the funding that it needed to complete the restoration, but now that the votes have been counted, that promise seems to have shrunk to starting yet another partnership group, with no sign of the remaining £12 million in capital funding that Glasgow City Council needs to get the restoration project under way.
Will the minister guarantee that that group will not be just another talking shop that covers for more delays? Will he upgrade the “appropriate match funding” to a guarantee that all necessary capital funding will be found, and set a firm reopening date for this key Glasgow cultural institution, which has been largely closed to the public for nearly a decade?
I recognise the member’s significant and long-standing interest in this area. He is right to draw attention to what was promised when the People’s Palace was opened in 1898. That is a commitment that we have a collective responsibility to keep, so I assure him that there is no watering down of it. I want to ensure that we are working collaboratively; we recognise that a range of partners is involved in the delivery of the project—including, most importantly, the local community—as well as a range of funders.
I recognise the member’s interest in the matter, and I am happy to engage with him closely on it. I assure him of the Scottish Government’s commitment to working constructively with partners to ensure that the People’s Palace and the winter gardens are reopened.
In the 1970s, the then-Labour Glasgow City Council proposed demolishing the People’s Palace building to put in a motorway—a potential work of historical vandalism of epic proportions. That was followed by decades of the Labour council not adequately investing in the building or the winter gardens, which allowed one of the most precious buildings in Glasgow to go to wrack and ruin. Therefore, I welcome the minister’s statement and commitment to forming a partnership group to ensure the survival of the People’s Palace.
Can we have a question?
Will the minister assure my constituents and the people of Glasgow that the People’s Palace will reopen, and can he give a timescale for that work to be completed?
I assure Clare Haughey and her constituents of the Scottish Government’s commitment on that. I am not in a position to give a definitive timescale for the reopening, but, naturally, I want that to happen as quickly as is practicably possible.
Clare Haughey highlights to the chamber another important point, which is the value of learning lessons from history, particularly of the post-war era, when many treasures of our architectural heritage—not just in Glasgow, but more widely across Scotland—were lost to post-war planning. That is a mistake that we must never repeat. The People’s Palace and its winter gardens are a treasure and a national asset, as well as an asset for the east end of Glasgow. We have to work constructively and collaboratively to save them, and that is what the Scottish Government will do in partnership.
I am hoping to squeeze in two more questions. I call Iris Duane, to be followed by Colm Merrick.
I thank the minister for sight of his statement before the debate.
I share the concerns of my fellow Glasgow region MSPs about funding for the People’s Palace, but I am thankful that the minister has recognised that it is a cultural icon in Glasgow. It is quite disappointing, however, to hear that the Scottish Government is only using convening powers that it could have—and should have—used before now.
Will the minister confirm whether funding from the Scottish Government will be forthcoming as part of the collaborative package that he speaks of, and whether, in the scenario in which a funding partner is not found, the Government is willing to shoulder the cost?
I appreciate the question that the member asks. I want to provide reassurance on the Government’s commitment to working constructively towards the reopening of the palace and winter gardens. I do not want to pre-empt where those discussions will lead to and the specific funding package that will be brought together, which could include elements of match funding.
However, we are committed to working on that constructively. I have come to Parliament, proactively, to make a statement on the back of a manifesto commitment—and Government commitment—to working towards the reopening of the People’s Palace. I hope that that provides the member with reassurance.
As the discussions progress, I am happy to keep Glasgow region members—and, indeed, members across the wider chamber, should they be interested—updated on the nature of the discussions and the progress that we are making, including specifically on the financing of the project.
As many people across Glasgow will be today, I am delighted to welcome the support for the People’s Palace. As its name suggests, the People’s Palace has always been at the centre of the community and it holds a special place in the hearts of Glaswegians.
Therefore, what assurances can the Scottish Government provide to Glaswegians that their voice will be at the heart of the plans for the palace, to ensure that it has a sustainable, inclusive and accessible future for generations to come?
I have covered some of those points in previous answers, but I note that community voices have been central to shaping the project, with more than 6,300 people contributing their views, stories and lived experiences. That extensive engagement has directly informed the refurbishment designs, ensuring that the museum will reflect the diversity and identity of the city. It is a significant project, and I reiterate the Government’s commitment not just to working with partners to deliver it, but to ensuring that it reflects the priorities, views and values of the people who live in the area.