The Scottish Government has announced an investment of over £21.5 million from two key funds to regenerate communities and stimulate economic growth across Scotland.

This funding is set to bring 24 disused or derelict sites and buildings back into productive use, projecting the creation of over 160 jobs and support for nearly 900 training opportunities.

Deputy First Minister Kate Forbes confirmed the 2025-26 allocations from the Regeneration Capital Grant Fund (RCGF) and the Vacant and Derelict Land Investment Programme (VDLIP) during a visit to Powderhall in north Edinburgh. The City of Edinburgh Council will receive £1.4 million for remedial works at the former waste disposal site in Powderhall, paving the way for a housing-led regeneration project that will deliver 259 homes, including affordable housing.

Other initiatives benefiting from this investment include:

• The revival of a slate quarry in Cullipool, owned and operated by the Isle of Luing Community Trust.

• The conversion of a former tram depot in Dundee into a new transport museum.

• The redevelopment of a derelict school into energy-efficient housing units in Borrodale on the Isle of Skye.

• The creation of film production suites and a training centre at a former glue factory in Glasgow.


• The extension of Lochvale House community centre in Dumfries to include a café and soft play area.

This announcement coincides with a call for expressions of interest for 2026-27 funding to support regeneration projects in disadvantaged communities. As outlined in the 2025 Programme for Government, future Scottish Government support for regeneration projects will be streamlined into a single national fund – the Regeneration Capital Grant Fund – to simplify the application and delivery process.

The Deputy First Minister stated: "This funding will help to transform derelict sites the length and breadth of Scotland, creating homes, jobs and facilities that drive economic growth, tackle poverty and help support and growing thriving communities. This funding forms part of a wider £62.15 million investment by the Scottish Government towards regeneration projects in 2025-26. This will help to revitalise green spaces, town centres and derelict sites to benefit people across Scotland. The 2025 Programme for Government sets out our renewed commitment to supporting regeneration projects across the country with one streamlined fund delivering this vision from next year."

COSLA's Spokesperson for Environment and Economy, Councillor Gail Macgregor, highlighted the importance of these funds for local authorities: "Today's announcement sees the return of invaluable tools and resources for local authorities to help deliver on the regeneration aspirations of the communities which they represent. The diversity of successful projects on show demonstrates how localised approaches can deliver benefits across the country and showcase the best of partnership between local authorities and our communities to deliver economic and social renewal. We look forward to continuing to work with Scottish Government on regeneration in the months to come."

City of Edinburgh Council's Housing, Homelessness and Fair Work Convener Lezley Marion Cameron welcomed the investment for Powderhall: "Our development plans at Powderhall are breathing new life into an excellently located, long unused industrial site, and are set to deliver hundreds of much-needed new homes and work and community spaces too. The transformation of Powderhall is already well underway with the restoration of the former stable block, which retains unique heritage features of the site's former use. Regenerating a historic, brownfield site like Powderhall is complex, challenging, and costly therefore I warmly welcome this Scottish Government investment."