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Levelling Up Fund

The UK Government’s Levelling Up Fund is investing in transformational projects that improve everyday life, strengthen local economies and help town centres thrive.

Moray Council secured £18 million in Levelling Up funding in November 2023 to support delivery of the Elgin City Masterplan programme. This is a once-in-a-generation investment opportunity focused on revitalising Elgin town centre, delivering a stronger cultural offer, more welcoming public spaces, improved accessibility and sustainable travel connections and upgraded infrastructure to support long-term growth.

2025 saw the programme progress through detailed design development, site surveys, statutory consenting and procurement activity. A key milestone was the appointment of Pat Munro Construction Ltd, enabling projects to progress into construction planning.

In 2026, the programme is entering a key delivery phase. Design and procurement activity is progressing into mobilisation and construction planning. Communities will begin to see visible progress as key projects move towards on-site works.

The programme is made up with linked regeneration projects including the redevelopment of key town-centre assets, public realm improvements, active travel and junction upgrades, and flood alleviation/sustainable drainage infrastructure. Together, these projects will improve Elgin’s attractiveness, accessibility and resilience, supporting residents, local businesses and future investment.

The projects:

South Street Regeneration

South Street is one of Elgin’s most significant town-centre regeneration opportunities. Through the Levelling Up Fund, Moray Council is working in partnership with Moray College UHI and Robertson Property Ltd to transform this long-derelict area into a vibrant and connected part of the town centre.

The South Street development will deliver a mixed-use neighbourhood that supports town-centre living, business growth and improved public spaces, including:

  • A new Business Enterprise Hub
  • 38 one and two-bedroom flats
  • Opportunities for small retail / commercial units
  • High-quality public realm improvements
  • A reinstated pedestrian connection between South Street and High Street via Newmarket Close
 

Progress update (2025 milestone)

A major milestone was achieved in 2025, with demolition works completed to clear the development site. This was followed by extensive archaeological investigations, ensuring the site’s heritage was appropriately recorded and understood ahead of construction.

With site clearance and archaeology now complete, South Street is ready to progress into the next phase of delivery planning, including detailed design development, construction programming and procurement activity.

Construction has now begun (June 2026), marking the start of the next phase to bring forward new homes, business space and improved public areas. As delivery progresses, the project will help strengthen Elgin town centre by creating a more active, welcoming and better-connected environment for residents, businesses and visitors.

Cooper Park

Cooper Park Regeneration

Cooper Park is being re-imagined to enhance one of Elgin’s valuable green space’s, improving accessibility, biodiversity and visitor facilities while protecting the park’s natural character. The project will create a more welcoming and inclusive destination for families, park users and visitors, and will complement wider town-centre investment including the Moray Growth Deal Cultural Quarter project and Pride in Place funding managed by the Elgin Neighbourhood Board.

The regeneration programme includes:

Pond restoration and enhancement to improve the quality and function of the pond environment, with upgraded and accessible pathways, new seating, and sensitive landscaping designed to increase biodiversity and improve the overall visitor experience.

Toilet block extension and repurposing , transforming the existing building to provide an accessible café facility and a Changing Places facility, supporting a broader range of park users and significantly improving inclusivity.

Delivery position (early 2026)

Detailed design development and site investigations are now complete, and the appointed contractor is progressing initial activities. Pat Munro Construction Ltd started preparations in January/February 2026, with early works following.

Ecology and biodiversity:

The project team recognises the importance of Cooper Park as a wildlife habitat and has undertaken a careful design approach supported by specialist ecological advice. Pond and landscape works are continuing through value engineering and detailed design, with an emphasis on making sure the final proposals are ecologically responsible, support biodiversity enhancement, and promote a safe and habitable environment for wildlife. Engagement with ecological experts is ongoing to ensure the works are delivered in a way that is both sustainable and proportionate.

Former Gordon Arms Hotel

Former Gordon Arms Hotel – Creative Arts Centre

The redevelopment of the former Gordon Arms Hotel and M&Co is one of the Levelling Up Fund programme’s flagship projects and a key regeneration anchor within Elgin town centre.

The project will bring a landmark building back into active use, supporting a stronger cultural offer, improving town-centre vitality, and contributing to increased footfall and economy.

What will the project deliver?

The facility is expected to include:

  • An art gallery and exhibition space
  • Artist studios and booths
  • A making / workshop space for creative activity and learning
  • Flexible rooms to host other creative organisations, groups and individuals
  • Space for community engagement and cultural programming
 

The project will also protect the building’s character and heritage as it is brought back into active use for the benefit of Elgin and the wider Moray community.

Delivery position (2026 onward):

During 2025, the project progressed through extensive architectural development, supported by detailed condition and specialist surveys to reduce risk and strengthen design certainty. A key milestone was achieved in December 2025 with the submission of the planning application, enabling the project to progress into its next delivery phase.

Detailed design is planned January 2026 to June 2026, followed by mobilisation and construction commencing later in 2026. The council continues to progress the project alongside it’s delivery partners and finalisation of the delivery programme. 

Creative partner:

Moray Council appointed Moray Arts Development Engagement (M:ADE) as its creative partner for the redevelopment and operation of the Creative Arts Centre. M:ADE are continuing to develop a robust delivery plan to ensure the facility is locally responsive and ready for a long-term delivery of social and economic benefit through the arts.

Sawmill Site

Former Sawmill Site – Flood Alleviation, SuDS and Green Infrastructure

The former Sawmill site, to the south of the railway line near Linkwood Road, has been empty for many years and is constrained by flood risk and drainage limitations. This Levelling Up Fund project will deliver a coordinated package of flood alleviation and green infrastructure works, improving the resilience of the local area while creating a safer, more attractive environment.

The project scope includes:

  • A new SuDS pond and drainage network designed to manage surface water more effectively
  • Increased flood water storage capacity through carefully engineered earthworks and landscape design
  • A strengthened green corridor / wetland-style environment, enhancing local biodiversity and providing wider environmental benefit
 

Delivery position (2026 onward):

The project is supported by detailed flood modelling, design development and technical validation work to make sure the solution performs as intended during extreme rainfall events and reduces downstream impacts. Design progression continues to refine the balance between engineering performance, constructability and environmental enhancement.

Subject to approvals, works are due to begin in the second half of 2026. Transitioning the site from long-term dereliction into a more resilient and environmentally positive asset.

Active Travel Measures

Active Travel & Junction Improvements

The Levelling Up Fund programme includes a package of town-centre active travel and traffic management improvements aimed at supporting safer walking, wheeling and cycling, improving accessibility, and enhancing the overall streetscape environment. The focus is on targeted interventions which improve connectivity and safety.

Key elements being progressed through detailed design include:

  • Improved traffic management and streetscape upgrades to support a safer and more accessible town centre environment.
  • Measures to reinforce and enhance existing pedestrian priority areas, supporting town-centre vibrancy and appropriate use of outdoor space.
  • Improved pedestrian and cycle connectivity between key town-centre routes and destinations, including safer crossing points and upgraded footway links.
 

Design development and current focus (2026):

As designs have progressed, the project team has undertaken detailed reviews to make sure proposals remain deliverable, affordable and proportionate. In particular, the programme is prioritising improvements to how pedestrians navigate key junctions including Laighmoray and Edgar Road. Works continue to focus on a package of connected accessibility improvements,including:

  • New and improved controlled crossings at key locations.
  • Better connected footway routes to support safe movement through and around junctions.
  • Resurfacing, visibility and safety enhancements, supporting pedestrian priority and road user awareness.

 

Engagement and statutory process:

The council remains committed to an open engagement led approach. Feedback gathered from consultation activity continues to be reviewed and incorporated where practical, with the design evolving to reflect local priorities alongside technical requirements.

Traffic Regulation Orders (TROs) remain a key dependency and are currently expected to be prepared and finalised ready promotion during the Autumn of 2026.

Levelling Up Fund News

Progress continues at Cooper Park as plans adapt to site challenges

Progress continues to be made towards the rejuvenation of Elgin’s Cooper Park Pond and surrounding area. The coming weeks will see more significant and visible changes to the popular area. Changes at Cooper Park in Elgin are funded as part of the UK Government’s £18M Levelling Up Fund, with these improvements representing a significant investment in Elgin’s public spaces and will help ensure Cooper Park continues to be a vibrant and inclusive destination for generations to come. Steady progress is being made around the pond, including improving pathways and repairs to the pond walls. These repairs are a complex and detailed process, made more challenging by the discovery of worse erosion than anticipated once work began and therefore the need to consult with specialist engineers. This work is

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Partnership-led South Street project in Elgin takes major step forward

Full construction has now begun on the South Street regeneration project following completion of preparatory works, marking a significant milestone in one of Elgin’s most important town-centre regeneration projects. This major milestone follows significant enabling works including demolition and archaeological surveys that took place over 2025. An innovative partnership between Moray Council, UHI Moray, Cairn Housing Association and developer Robertson Property Ltd; the project is a cornerstone initiative within the wider Elgin City Centre Masterplan. The development includes the Moray Growth Deal’s Business Enterprise Hub, with £750,000 of UK Government funding contributed by Pride in Place (Elgin Neighbourhood Board); 38 affordable one and two-bedroom flats as part of

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Moray Council updates Levelling Up programme to focus on Auction Mart and Sawmill regeneration

Moray Council updates Levelling Up programme to focus on Auction Mart and Sawmill regeneration Moray Council has agreed a number of updates to the Elgin Levelling Up Fund programme to ensure projects can be delivered on time and provide the greatest benefit for the local area. Following recent design work and community consultation, the Council has decided not to progress the Moss Street active travel proposals at this time. Many residents raised concerns about the changes, and with no confirmed timetable for an A96 bypass to ease traffic in the town, the Council will revisit the proposals once there

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