Council / Coastal communities fund to reopen but with reduced grant ceiling
A FUNDING scheme administered by Shetland Islands Council (SIC) which has awarded more than £5 million to community projects in the last five years is set re-open – but with a reduced maximum grant on offer.
The Coastal Communities Fund, which uses money given to the council each year by Crown Estate Scotland, will now have an application ceiling of £50,000 compared to £100,000 before.
A report to elected members said the reduced maximum grant available recognises the need for the SIC to be able to use funds from Crown Estate allocations to support “vital strategic projects”.
In addition to the Coastal Communities Fund, the SIC has previously also used money from the allocation for some of its own projects like the new Fair Isle ferry, the Tall Ships Races, an inter-island transport connectivity study and a graduate development programme.
A report to councillors also said a reduced grant ceiling of £50,000 should ensure “as wide access to the scheme as possible”.
Each year the SIC receives an allocation from the distribution of net revenues from Crown Estate assets, out to 12 miles at sea.
The most recent allocation, for 2023/24, amounted to just over £2.4 million.
The council has received around £11.5 million in Crown Estate net revenues from when allocations began in 2017/18 through to 2023/24.
Launched in 2020 as part of efforts to devolve the management of the Crown Estate, the Coastal Communities fund has paid out around £5.1 million to 105 community projects to date.
They cover the gamut – from supporting the new Fair Isle Bird Observatory to helping to fund public hall upgrades, renovations for sailing vessel Swan and a push to get more people playing table tennis.
But the report which went in front of the SIC’s development committee on Wednesday highlighted that the council using Crown Estate money for strategic projects had reduced the available budget for the Coastal Communities Fund, leading to it being temporarily closed in September.
It is now due to reopen on 1 April with a budget of nearly £390,000 after councillors approved updated guidance for the fund.
The council has on average paid out around £1 million year since the scheme started, so the budget stands to be less than before.
Projects with an existing ‘stage one’ application will initially be invited to apply under the revised guidance.
But SIC economic development Tommy Coutts conceded that the new limit of £50,000 could negatively affect some projects with applications already in, such as creating a funding gap.
After the initial closed call, the scheme will reopen for new applications if sufficient budget remains available.
Applicants may submit separate applications for “development and delivery costs” for a revenue project, with the Coastal Communities Fund able to cumulatively award a revenue project up to £75,000.
North Isles members Robert Thomson successfully amended the guidance wording so that if a project secured cumulative funding worth more than £50,000 within the same financial year then it would go in front of councillors on the development committee for decision.
Depute leader Gary Robinson meanwhile highlighted the Coastal Communities Fund as a “tangible benefit” of the former Our Islands Our Future campaign.
He said the campaign sought for both revenue from and control of the seabed around Shetland.
“In some ways having the revenue without the hassle of managing the estate is maybe not so bad after all,” Robinson said.
Shetland Central member Davie Sandison also said some local authorities just use their Crown Estate allocations for general spend, and said it should be recognised that Shetland puts some of its money to community projects.
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