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Exclusive: ‘Conversation’ needed on Aberdeen market £20m if Union Street pedestrianisation is ditched, says Chancellor Sunak

Chancellor Rishi Sunak has warned there would be a 'conversation' on the £20m levelling up grant for a new Aberdeen market if Union Street pedestrianisation is ditched.
Chancellor Rishi Sunak has warned there would be a 'conversation' on the £20m levelling up grant for a new Aberdeen market if Union Street pedestrianisation is ditched. Picture by HM Treasury/Aberdeen City Council.

The chancellor has warned councillors that £20 million in funding for Aberdeen’s new market could be on the line – if Union Street is not pedestrianised.

Rishi Sunak told The P&J there would be a “conversation” between UK and city officials about the cash.

Levelling up funding for the redevelopment of the BHS site on the Granite Mile was announced last October.

An Aberdeen City Council image of how the new market could look on a pedestrianised Union Street. The UK Government has put £20m towards the project.
An Aberdeen City Council image of how the new market could look on a pedestrianised Union Street. The UK Government has put £20m towards the project.

As well as promising the market, the city’s application pledged there would be “some pedestrianisation”.

The return of buses and taxis to Union Street central this week came as city planners once again encouraged councillors to back full pedestrianisation.

A decision could be taken on Wednesday.

Sunak: ‘Conversation to ensure Aberdeen market £20m is still delivering things we expect it to deliver’

And speaking to The Press And Journal in the Granite City yesterday, Mr Sunak warned the government would have to consider the £20m grant if it did not go ahead.

Chancellor Rishi Sunak spoke to The P&J while in Aberdeen for a meeting with oil chiefs - and warned the £20m market grant could be affected if Union Street is not pedestrianised. Picture by HM Treasury.
Chancellor Rishi Sunak spoke to The P&J while in Aberdeen for a meeting with oil chiefs – and warned the £20m market grant could be affected if Union Street is not pedestrianised. Picture by HM Treasury.

The chancellor told us: “There would be conversation between the Department for Levelling Up and the local area in receipt of the funds, for them to make sure the funding is still delivering things we expect it to deliver.

“There’s various stages of a process that these bids go through with various business plans and the department would engage with the local area on that process.”

Councillors have been fighting for almost a year about the long-term future of the central part of Union Street.

The disputed 1,000ft of road was closed temporarily as part of the NHS-backed Covid response in summer 2020.

But it has taken two years for it to reopen.

Buses and taxis have been allowed back on the Market Street to Bridge Street stretch only this week.

And the insides of the BHS building and all of the former 1970s marketplace have already been demolished as part of the £50m work.

New Aberdeen council co-leader Nicoll slams chancellor’s Union Street intervention

During those two years, the SNP and Liberal Democrats have taken over the running of the council.

However, that came after they – as opposition – had already set the wheels in motion for bus prioritisation.

And the SNP council co-leader Alex Nicoll was quick to try and put Mr Sunak in his place.

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He fired back: “If the chancellor is keen to deliver for Aberdeen, might I recommend delivering an agreement on Network Rail pay, support for a just transition, an increase to benefits in line with inflation, and access to the EU single market.

“Our partnership of SNP and Liberal Democrat councillors will make decisions about what to deliver in Aberdeen.

“That will be based upon what offers the greatest benefits to this city and the people who live here.”

Mr Nicoll previously called talk of the £20m grant being reviewed a “scare story”.

It all comes as council chiefs trawl all major building projects for way to slash budgets in the face of the rising cost of materials.

There is a warning delays are likely, as has already been the case in the refurbishment of Union Terrace Gardens.

Putting Aberdeen market £20m at risk ‘an act of folly’

And warnings that the UK Government would want to re-examine the £20m cash award enraged opposition councillors.

Labour and the Conservatives were in charge as Aberdeen secured the funding.

Their top councillors from their then ruling coalition personally campaigned Levelling Up Secretary Michael Gove.

For Labour group leader Sandra Macdonald, pedestrianisation and the new market “go together” as the “best way” to bring more people to the city centre.

Labour group leader Sandra Macdonald said risking the Aberdeen market £20m would be "an act of folly". Picture by Aberdeen City Council.
Labour group leader Sandra Macdonald said risking the Aberdeen market £20m would be “an act of folly”. Picture by Aberdeen City Council.

“It would be an act of folly to put this major investment in our city centre at risk,” she said.

“Labour will press SNP councillors to deliver pedestrianisation and major new investment as planned.”

Conservative group leader Ryan Houghton added: “Putting £20m of UK Government investment at risk with no coherent alternative vision for the city will be a damaging step.

“If the SNP/Lib Dem administration can’t see this, then there are huge problems for the city ahead.”

More on Chancellor Rishi Sunak’s trip to Aberdeen:

Conversation