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25/03/2025

Highlands To Consider New Approach For £2.1bn Investment Plan

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Highland Councillors are set to deliberate on a revised strategy for the Highland Investment Plan (HIP), a long-term initiative with a potential value of more than £2 billion.

A key decision facing the council is the appointment of a delivery partner and the allocation of funding for the first phase of proposed projects, spanning from 2024/25 to 2029/30. These projects aim to enhance local public facilities and support communities across the region.

The Highland Investment Plan is centred around establishing a new generation of integrated community facilities, known as PODs, which will be supported by a modernised operating model for services provided by Highland Council and partner organisations like NHS Highland.

A report to be presented at the Highland Council meeting on 27 March will update Councillors on the progress of the ambitious HIP. The report highlights the link between the development of Community PODs and the council's plans to modernise service delivery, positioning them as a crucial element of the Highland Community Planning Partnership's future operating model.

The HIP is underpinned by a commitment to allocate 2% of council tax revenue annually, or an equivalent revenue stream, over a twenty-year period, amounting to a total investment of £2.1 billion. This significant funding is intended to address major challenges faced by Highland Council in areas such as transport and roads, schools and community facilities, and depots and public offices throughout Highland communities.
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Highland Council Leader Councillor Raymond Bremner stated that the recommendations to Council will include the appointment of Hub North Scotland Ltd as the preferred delivery partner for the Highland Investment Plan. Additionally, a Commissioning Approval Board, chaired by the Assistant Chief Executive – Place, is proposed to oversee the projects. Councillor Bremner also noted the broader ambition of the HIP: "The wider context of the HIP is to establish a prospectus of investible developments that can attract private sector partners and gain more leverage for public sector investment in local communities."

The Committee will also be asked to approve the allocation of capital funding to the initial group of Phase 1 projects located in Beauly, Charleston, Dingwall, Dunvegan, Fortrose, Inverness High, and Thurso, along with their proposed delivery timelines. Councillors will also consider an option to develop a Community POD for St Clement's and Dingwall Primary schools, based on the potential for greater educational benefits for both schools and maximum economic benefit for the wider community.

The report advises Councillors that the relocation of St Clement's School to the new Dingwall Community POD site would require a statutory consultation. If approved, this new Community POD development is prioritised for the earliest possible delivery, with construction potentially commencing in early 2027 and the new building operational by the end of 2028/29.

Convener of the Council, Councillor Bill Lobban, emphasised the consideration given to local views: "All work to date by the Council on the Highland Investment Plan has taken into account the views of local people and local issues and priorities. Members will have the opportunity to discuss the report on Thursday and if the recommendations regarding St Clement's and Dingwall Primary schools are agreed, the Council will immediately commence an informal consultation period of engagement with relevant stakeholders from both schools. In addition, if agreed by Council, work will also start on a Strategic Outline Case for Lochaber Adult Care Provision."

Members will also receive an update on the Thurso Place-Based review, which aims to determine the preferred model for a Thurso Community POD. If approved, this project is also recommended for prioritisation, with an estimated operational timescale in 2029/30.

In addition to the ongoing development of projects at Tain Campus, Nairn Academy, Broadford, and Tornagrain, five previously prioritised Phase 1 projects are progressing with the following earliest operational dates: Beauly Primary (2027/28); Charleston Academy (2029/30); Dunvegan Primary (2027/28); Fortrose Academy (2029/30); Inverness High (2029/30).

Funding for the Highland Investment Plan was agreed as part of the Council Tax and budget decisions on 6 March 2025, with 2% of council tax income allocated to support the initiative.

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