Perth and Kinross Council is facing a projected financial hit exceeding two hundred thousand pounds due to unexpected hold-ups in filling office space at the newly acquired Pullar House. This prominent civic building on Kinnoull Street, intended as a bustling public sector hub, has encountered delays in securing a firm commitment from a key government partner for its occupancy.
The local authority took full ownership of Pullar House in September, a strategic acquisition following an earlier leasing arrangement that cost the council £3.2 million annually. The decision to purchase the building, along with the adjacent Kinnoull Street car park, was finalized in September 2024. This move was a central pillar of an ambitious urban regeneration strategy for Perth, designed to inject new life and activity into the city centre by centralizing civic functions and creating a more dynamic community hub. This extensive renewal initiative also encompasses other significant projects, such as the proposed PH2O leisure centre at Thimblerow.
The vision for Pullar House was to create a collaborative environment, bringing together various public agencies and council staff under one roof. The Scottish Government was earmarked as a pivotal partner in this enterprise, alongside other established organizations like the Perth and Kinross Countryside Trust and VisitScotland. The aspiration was to foster synergy, improving public service delivery and boosting footfall and economic vitality in Perth’s bustling heart.
However, the latest financial report for the 2025/26 budget, presented by Chief Finance Officer Scott Walker, reveals a concerning projected overall overspend of £3.46 million for the council. A notable portion of this financial shortfall – precisely £222,000 – is directly attributed to the prolonged vacancy of key office space within Pullar House. This figure represents a significant reduction in anticipated rental income, highlighting the direct financial repercussions of the ongoing delays for the council’s fiscal health.
The report explicitly points to the Scottish Government’s ongoing review as the primary cause of this financial strain. “In Facilities Management, there is a projected overspend of £418,000 due to the timing of the roll out of the new cleaning regime (£196,000) and delays in public sector partners confirming their relocation into Pullar House (£222,000). This has been a particular issue with the Scottish Government who have not been able to make a formal commitment despite the best efforts of council officers to make progress, resulting in a projected reduction in rental income in the current year compared to the business case assumptions.”
During discussions at a recent finance and resources committee meeting, councillors sought clarification on the unfolding situation. Stephen Crawford, the council’s head of property services, conveyed a message of measured optimism despite the challenges. When questioned about the potential necessity of seeking alternative tenants, Mr. Crawford indicated that this option is not currently under active consideration. He expressed confidence in an imminent decision from the Scottish Government, stating that the council “haven’t crossed that line yet,” implying that the preferred outcome of co-location remains the focus, even amidst these protracted discussions.
A spokesperson for the Scottish Government provided an official statement on their progress: “A review of the Scottish Government’s office requirements in Perth is being finalised, and the outcome will be set out in the coming weeks. In line with the principles of Public Service Reform, the review includes an option to co-locate at Pullar House with Perth and Kinross Council. While the Scottish Government remains supportive in principle, due diligence must be carried out to ensure the best value solution in line with the Scottish Public Finance Manual.” This statement clarifies that while the concept of co-locating is favoured, the final endorsement is contingent upon a thorough financial and operational assessment, a process that naturally requires time and careful consideration.
For the community of Perth and Kinross, the resolution of this matter is keenly anticipated. The broader vision for Pullar House extends beyond simply providing office space; it is a critical element of a comprehensive urban renewal strategy aimed at fostering a more vibrant, dynamic, and accessible city centre. Persistent delays not only exacerbate financial pressures on the council’s budget but also have the potential to impede the momentum of other crucial regeneration projects throughout Perth. Local businesses, hoping for increased footfall and improved civic infrastructure, along with residents anticipating enhanced public services, will be closely monitoring the forthcoming announcement. The timely and successful integration of all planned partners into Pullar House is seen as paramount to realizing the ambitious goals of establishing Perth as a truly thriving and modern urban hub for years to come. The financial implications, while substantial, are intertwined with the broader strategic impact of a fully functional and collaborative public sector presence on Kinnoull Street.
The local authority took full ownership of Pullar House in September, a strategic acquisition following an earlier leasing arrangement that cost the council £3.2 million annually. The decision to purchase the building, along with the adjacent Kinnoull Street car park, was finalized in September 2024. This move was a central pillar of an ambitious urban regeneration strategy for Perth, designed to inject new life and activity into the city centre by centralizing civic functions and creating a more dynamic community hub. This extensive renewal initiative also encompasses other significant projects, such as the proposed PH2O leisure centre at Thimblerow.
The vision for Pullar House was to create a collaborative environment, bringing together various public agencies and council staff under one roof. The Scottish Government was earmarked as a pivotal partner in this enterprise, alongside other established organizations like the Perth and Kinross Countryside Trust and VisitScotland. The aspiration was to foster synergy, improving public service delivery and boosting footfall and economic vitality in Perth’s bustling heart.
However, the latest financial report for the 2025/26 budget, presented by Chief Finance Officer Scott Walker, reveals a concerning projected overall overspend of £3.46 million for the council. A notable portion of this financial shortfall – precisely £222,000 – is directly attributed to the prolonged vacancy of key office space within Pullar House. This figure represents a significant reduction in anticipated rental income, highlighting the direct financial repercussions of the ongoing delays for the council’s fiscal health.
The report explicitly points to the Scottish Government’s ongoing review as the primary cause of this financial strain. “In Facilities Management, there is a projected overspend of £418,000 due to the timing of the roll out of the new cleaning regime (£196,000) and delays in public sector partners confirming their relocation into Pullar House (£222,000). This has been a particular issue with the Scottish Government who have not been able to make a formal commitment despite the best efforts of council officers to make progress, resulting in a projected reduction in rental income in the current year compared to the business case assumptions.”
During discussions at a recent finance and resources committee meeting, councillors sought clarification on the unfolding situation. Stephen Crawford, the council’s head of property services, conveyed a message of measured optimism despite the challenges. When questioned about the potential necessity of seeking alternative tenants, Mr. Crawford indicated that this option is not currently under active consideration. He expressed confidence in an imminent decision from the Scottish Government, stating that the council “haven’t crossed that line yet,” implying that the preferred outcome of co-location remains the focus, even amidst these protracted discussions.
A spokesperson for the Scottish Government provided an official statement on their progress: “A review of the Scottish Government’s office requirements in Perth is being finalised, and the outcome will be set out in the coming weeks. In line with the principles of Public Service Reform, the review includes an option to co-locate at Pullar House with Perth and Kinross Council. While the Scottish Government remains supportive in principle, due diligence must be carried out to ensure the best value solution in line with the Scottish Public Finance Manual.” This statement clarifies that while the concept of co-locating is favoured, the final endorsement is contingent upon a thorough financial and operational assessment, a process that naturally requires time and careful consideration.
For the community of Perth and Kinross, the resolution of this matter is keenly anticipated. The broader vision for Pullar House extends beyond simply providing office space; it is a critical element of a comprehensive urban renewal strategy aimed at fostering a more vibrant, dynamic, and accessible city centre. Persistent delays not only exacerbate financial pressures on the council’s budget but also have the potential to impede the momentum of other crucial regeneration projects throughout Perth. Local businesses, hoping for increased footfall and improved civic infrastructure, along with residents anticipating enhanced public services, will be closely monitoring the forthcoming announcement. The timely and successful integration of all planned partners into Pullar House is seen as paramount to realizing the ambitious goals of establishing Perth as a truly thriving and modern urban hub for years to come. The financial implications, while substantial, are intertwined with the broader strategic impact of a fully functional and collaborative public sector presence on Kinnoull Street.