£10m of banking fines allocated to major Scottish projects

Fines levied from banks as a result of misconduct are to be funnelled into two major Scottish construction projects, it has been announced.

Penalties totalling £10 million will be evenly split to create a new leisure facility in Helensburgh and contribute to the fundraising campaign for the £80m V&A Museum being built in Dundee.

Penalties imposed on banks that attempted to manipulate the benchmark inter-bank borrowing rate will go towards the new development in Helensburgh, “for use by the local community and military personnel and their families based at HM Naval Base Clyde”, UK Chancellor George Osborne said in his Budget address yesterday.

He said he had allocated the money in response to an appeal made by Scottish Tory leader Ruth Davidson, who said later the funding “will provide first-class leisure facilities for both military personnel and their families, as well as local residents”.

The money will go towards a new swimming pool, leisure centre and improvements to the car park and public spaces in the town.

The UK Government will also provide £5m towards the V&A, being built on the Tay waterfront of Dundee.

The new museum is the first in the UK designed by Kengo Kuma, the architect designing the Tokyo 2020 Olympic stadium, and will open in 2018.

There is also £150,000 for redevelopment schemes in New Cumnock, East Ayrshire.

Mr Osborne said: “We backed the V&A Museum in Dundee and, in response to the powerful case made by Ruth Davidson, we are providing new community facilities for local people in Helensburgh and the Royal Navy personnel in nearby Faslane, paid for by Libor fines.”

Of the V&A cash, Lord Andrew Dunlop, the Under Secretary for State for Scotland, said: “The V&A is a vital project, not just culturally, but also in terms of the part it can play in attracting jobs and investment into Dundee. An iconic enterprise like this will help put the city on the map, bringing in visitors and showing the world what Dundee has to offer.”

The new museum, the cost of which spiralled controversially last year, has already received £25m from the Scottish Government, £12.5m from the Heritage Lottery Fund and other significant funds from Creative Scotland, Dundee City Council, Growth Accelerator Funding and Waterfront Dundee.

Philip Long, director of V&A Dundee, said: “We are delighted to receive £5 million additional funding from the UK Government today, in addition to the generous support from (other) funders.”

Councillor Dick Walsh, leader of Argyll and Bute Council, said: “This is fantastic news.

“This investment highlights Argyll and Bute as one of Scotland’s most promising regions, worthy of investment, with economic potential to drive local and wider prosperity.

“The funding will add greatly to the work already being done by the council to revitalise Helensburgh as a great place to live, work and visit.”