THE Love Local Argyll and Bute gift card is set to be discontinued in the area – but customers will still have almost two years to use it.
The facility was introduced by the council in 2021 as part of its response to Covid-19, and is reportedly closing in on having enabled almost £1million to be spent in the area’s economy.
However, council officials have said that the scheme has reached “a natural conclusion” and should be terminated in October 2027.
A report evaluating the project is set to go before the council’s policy and resources committee at its meeting on Thursday, December 4.
Executive director Kirsty Flanagan said: “Delivered locally with support from the supplier Miconex, the scheme aimed to stimulate community-level economic activity, retain spend within the region and provide a secure, flexible mechanism for distributing public funds to support households and local businesses.
“The first year of operation was funded by the Scottish Government, with responsibility thereafter falling to individual local authorities.
“It was agreed at full council on April 28 2022 that funding from Local Authority Covid Economic Recovery (LACER) could be used to support the annual facilitation fees and associated marketing costs for operating the gift card.
“The LACER funding previously agreed to fund the gift card scheme will be fully expended during this financial year (2025/26) however, circa £22,000 of uncommitted LACER funding remains in earmarked reserves due to underspend on other projects. It is intended to use this funding to pay for the remaining contract costs up until October 2027.
“The council have also undertaken an evaluation to determine whether the scheme represents good value for money to seek additional funding to take into future years.
“Over the course of its operation, the scheme has facilitated over £939,000 in spend across Argyll and Bute and enabled the participation of more than 350 local businesses, including both town centre and rural enterprises.
“It has been used both for direct consumer purchases and for the delivery of public funding allocations, including the LACER and Islands Cost Crisis Funds. Latterly corporate gifting has been targeted as a potential area to grow sales.”
Ms Flanagan then said: “While unsubsidised sales provide the clearest indicator of the scheme’s long-term viability, it is important to note the gift card also played a significant role in supporting the local economy through the targeted disbursement of public funding.
“This directly benefited local businesses across Argyll and Bute, helped sustain employment and provided residents with a flexible, dignified way to access financial support.
“The scheme therefore made a meaningful contribution to local economic resilience during a period of significant challenge and demonstrated the value of place-based delivery mechanisms in channelling support where it was most needed.
“Officers are however unable, given the demonstrated use, to justify a recommendation which seeks additional funding to continue the scheme past the contract term date of October 12, 2027.”
The committee is recommended to agree proposals to continue the scheme until that date, and endorse proposals to continue the ‘Shop Local’ message through corporate communications and other activities.
