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Policy actions 3 of 4

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 £25 million-a-year Regeneration Capital Grant Fund supports projects that involve local communities in delivering local regeneration in disadvantaged areas.

Funding is available to all local authorities and their special purpose vehicles. The fund focuses on projects that engage and involve local communities and those that can demonstrate the ability to deliver sustainable regeneration outcomes. Applications to the fund are made annually and, where justified, can potentially cover more than one financial year, depending on the Spending Review cycle.


The call for Stage 1 applications, for projects that can start in 2018 to 2019, is now live. An indicative timetable for the call is provided below.

Indicative timetable 2017

All dates are indicative and remain dependent on the timing and result of Spending Review.

  • Round 5, Stage 1 opens: week beginning 22 May 2017
  • Stage 1 closes: Friday 18 August 2017 at noon
  • RCGF Investment Panel meeting: week beginning 25 September 2017
  • Applicants notified of results: week beginning 9 October 2017

  • Stage 2 opens: week beginning 16 October 2017

  • Stage 2 closes: Friday 8 December 2017
  • Investment Panel: week beginning 22 January 2018
  • Notification of funding recommendations: week beginning 19 February 2018

Funding to support projects will be subject to the Spending Review for 2018 and 2019.

The deadline for first stage applications is noon, Friday 18 August 2017.

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 process. 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.

Further information

If you have any questions on the fund, email them in the first instance to Please enter 'Request for further information' into the subject heading.

Scottish Partnership for Regeneration in Urban Centres (SPRUCE)

SPRUCE is a £50 million fund that offers loans and equity investments to revenue-generating infrastructure and energy-efficiency projects. It supports regeneration in 13 eligible local authority areas in Scotland.

One of SPRUCE's major benefits is that funds will be recycled and can be used for future regeneration projects. It has now entered the recycling phase, as the original fund has been invested in seven projects (see list of 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.

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.

The following local authorities will receive funding of £7.835 million in 2016 and 2017, reflecting the extent of vacant and derelict land in these areas and levels of deprivation:

  • Glasgow
  • North Lanarkshire
  • South Lanarkshire
  • North Ayrshire
  • Fife