'Highly likely' Dunard Centre project scrapped without Scottish Government funding

John Swinney said it would have been a “terrible shame” if the Dunard Centre, which is largely backed by philanthropist Carol Grigor, did not “get over the finishing line” due to a lack of funds.

He said the UK Government’s refusal to offer any more cash when the project warned costs had spiralled and it was facing a critical funding gap, was “disappointing”.

The concert hall - which will host music from pop and rock, to classical, folk and jazz as well as providing a permanent home for the Scottish Chamber Orchestra and a new venue for the Edinburgh International Festival - is set to become Edinburgh’s first purpose-built venue of its kind in over 100 years.

In October, a funding gap was bridged when the Scottish Government pledged £20 million in match funding for an extra £20m donated by philanthropist Dr Carol Colburn Grigor.

At a breaking of ground ceremony at the site of the new concert hall on a plot of land off St Andrew Square in the capital, Mr Swinney said the UK Government had been “nowhere to be seen” when Impact Scotland, the charity behind the creation of the Dunard Centre, spoke to its original backers in hope of securing more funds.

Jo Buckley, chief executive of Impact Scotland, pledged that she was “as confident as I can be” that the concert hall would be delivered on time by 2029 and within budget.

The ceremony was attended by philanthropist Ms Grigor - a former concert pianist and long-term funder of the arts in Scotland, who drove the creation of the new concert hall with an initial £35m donation as well as the recent £20m cash injection. Singer Dougie MacLean, who performed his classic song Caledonia, backed by a group of children from Broughton Primary School, also appeared at the event.

Mr Swinney said: “The Scottish Government originally committed £10 million pounds to this project, which is mirrored by the contribution of the United Kingdom Government. But over the course of the last couple of years, there have been enormous inflationary pressures in construction projects and this project was so close to getting over the line, but it needed more money.

“I decided we were so close, there was such enormous philanthropic contributions made by Carol Colburn Grigor, that it would have been just such a terrible shame to lose that opportunity. I responded to the request of the Dunard centre with the Scottish Government's increased contribution of another £20 million so that Edinburgh can have the first new concert hall in 100 years, a home for the Scottish Chamber orchestra and a magnificent new venue in the City of Edinburgh that will enhance the cultural landscape of Scotland.”

He added: “I think it's highly likely that the project would have stumbled at the finishing line, and that was why I decided that I couldn't allow that to happen, that the Scottish Government had to give the extra commitment that would make the project a reality. and I’m vey pleased that we’ve done that.”

Mr Swinney claimed the UK Government’s decision not to fund the project any further had swayed him to invest public money in ensuring that it went ahead.

The Dunard Centre was awarded £25m in City Deal Funding in 2022, with £20m split between Scottish and UK Government and a further £5m from the City of Edinburgh Council.

He said: “The UK Government refused to increase their contribution from the original £10 million. Of course it is [disappointing]. In the spirit of partnership, we worked on the City Deal together, we put in £10m each, this project faced more financial challenges and when push came to shove, the UK Government was nowhere to be seen.

“They refused to give any more financial commitment, which has obviously influenced my judgement about the necessity of making sure a project here in Scotland had to happen - and it’s going to happen with the support of the Scottish Government.”

Mr Swinney said the project was now at “financial close” and said he expected it to “live within the resources available to it”.

Ms Buckley said the Scottish Government’s contribution had been “hugely important”, stressing the importance of both public and private funding.

She said: “We have never had a blank check for this project, let me make that really clear. We have a very generous principle donor who has given an extraordinary amount to this project, but we have always needed it to be that public-private partnership and that has always been very important to the Dunard Fund as well.

“Genuinely, without that [Scottish Government] money, which was then matched pound for pound by Carol, we wouldn’t be standing here today. When we could see that the costs were rising, we had a conversation with all of our partners and talked to them about what would be possible. We did talk to the UK Government as well, it wasn’t possible for them, but we’re very glad that it was for the Scottish Government.”

She added: “A lot of people have been waiting 20, 25, years for this project to happen, and there have been really challenging moments, but it's very exciting today.”

She said the concert hall would also be a “community centre”, hosting pop up performances and community classes, as well as outdoor events and food vans in summer.

The Dunard Fund, founded by Dr Grigor, has secured more than £100m in private funding for the project, including $1m from the Carnegie Foundation.

Following the Scottish Government match funding pledge, a contract was finally signed in October with Balfour Beatty to complete the job by 2029, with work starting this week.

UK Government Scotland Office minister Kirsty McNeill said: “The Dunard Centre will be a tremendous addition to Edinburgh’s cultural landscape and I welcome construction getting underway.

“The UK Government is a big supporter of the project, investing £10 million as part of our £300 million commitment to the Edinburgh and South East Scotland City Region Deal.”