Before applying please read the application guidance.
Who can apply for the Union Street empty shop grant scheme?
Applications will be considered from :
- owners of vacant properties on Union Street, or their representatives, can apply. If someone applies on behalf of the owner, they must show proof that they have permission to act for the owner and can make a legal agreement with Aberdeen City Council regarding the grant.
- people who want to rent or lease an empty property on Union Street, where businesses have not started yet, can also apply. If a new tenant is applying, the property owner must give a letter showing they agree to the grant application.
Property owners who are applying should have a new tenant ready for the premises or be in the process of finding one.
Leaseholders who are new or expanding business owners will be prioritised. Applications from existing businesses moving elsewhere within the city boundary will be considered on a case-by-case basis.
Ineligible businesses include, but are not limited to, large national chains (ie. Tesco, Boots, Starbucks), betting shops, sex shops, pawn brokers, tanning salons, tobacconists and vape shops. Where the leaseholder applying is a registered charity or not-for-profit organisation, Aberdeen City Council would need to be satisfied that the new venture adds to the amenity of Union Street.
How much funding is available?
The Union Street Empty Shops Grant Scheme offered by Aberdeen City Council totals £500,000, with grants available to be paid from now until 31 March 2026.
Grant awards from this Fund will offer up to 50% of project costs for eligible physical works and reconfiguration with a maximum award amount of £35,000 per premises. Remaining project costs should be met by the applicant and/or private investment or sourced from alternative public funds.
Only one application per premise may be submitted over the duration of the scheme.
What can the funding be used for?
This fund will support project costs for eligible internal physical works and reconfiguration of ground floor vacant Union Street units to enable reoccupation, new commercial activity and support new employment opportunities.
Funding can be spent on capital investment costs only. Revenue or operating costs are not eligible.
Eligible project costs include:
- internal reconfiguration to support new retail, office, work, exhibition space or similar
- room partitioning
- installation of permanent WC and kitchen facilities
- upgrade of heating, lighting, plumbing, electrics and sales points
- permanent flooring
- installation or upgrade of fixtures
- installation of fixtures including slat walling and shelving or fittings such as display units or business equipment (fittings only considered where essential for new business operations)
- internal improvements as recommended on the building’s Energy Performance Certificate
- accessibility improvements above and beyond those required to meet legal requirements
The fund should be used to complete works which enable the space to become functionable, rather than to deliver a bespoke fit-out.
Architect fees and professional costs associated with the capital expenditure may be included (with 10-12% of total project costs considered maximum). Irrecoverable VAT can be included as an eligible cost.
External works and improvements (including replacement windows and doors, signage and frontages, exterior upgrades) and residential conversions are not eligible project costs under the Union Street Empty Shops Grant Scheme. This is a non-exhaustive list and additions may be made at any time.
Is consent required?
Consents required could include Planning Permission, Listed building Consent and Building Warrant Approval. You must obtain any relevant consents and meet any other legislative requirements prior to commencement of works. This will be a condition of the Grant Agreement. Please contact pi@aberdeencity.gov.uk for pre- advice about obtaining these consents through the Council.
Statutory consent fees are eligible for grant funding where they clearly relate to the Project.
When can applications be submitted?
Applications will be accepted until 30 September 2025, or until such time as funding has been fully allocated. Therefore early applications are strongly encouraged. All grants must be paid out by the Fund end date of 31 March 2026.
Who allocates the funds?
All applications will be assessed by the Project Team with consideration given to:
- meeting eligibility requirements and minimum application guidance;
- demonstrating value for money;
- demonstrating strategic alignment with the Grant Scheme objectives and priorities.
A final award decision on applications recommended for funding will be made by the Project Review Panel including Chief Officers.
Completing your application
Section 1 - Applicant details
Please provide information about who is making the request for funding. Note the sections for further information from an owner/landlord applicant or a new/prospective tenant applicant.
A due diligence check will be carried out, including a check on to-date payment of business rates, and we ask for some organisational background information to enable this. We may ask for additional paperwork and references to be provided to ensure applicant eligibility or to enable us to prioritise applications.
Section 2 - Works proposal
Description of works
Please provide a Project Title which can be used to refer to the application throughout the assessment and approval process. The Project Title should include the address of the Union Street property for which the application is being made.
All other fields should be completed. Please refer to how much funding is available.
Works overview
Please provide a summary of the proposed works covering the bullet points directed.
Section 3 - Funding
Expenditure
Please provide a full breakdown of expenditure for the Project. This can be based on estimates if quotes have not yet been sought. Please ensure familiarity with Section 10 (Public subsidy) when seeking quotes.
Follow the format of the tables provided. Table 1 should detail the breakdown in full, line by line, of ALL expenditure expected to complete and deliver the Project.
Table 2 should breakdown spend across the grant scheme and the additionally sourced funding; and across the two financial years (if relevant). Please refer closely to the eligible costs under the grant scheme as detailed in what can the funds be used for? when completing this table.
Funding is available for 2024/25 and 2025/26 financial years. If your Project will complete in 2024/25 then please only detail spend against this financial year.
Please note for successful bids, evidence of quotations will be sought at issuing of Grant Agreement. All applicants should be aware that they will be required to share evidence of all costs incurred during the Project at reporting stages, and failure to provide satisfactory evidence of costs incurred and adherence to public procurement rules may result in deduction of grant.
Additionality
Please explain the impact of the Grant Scheme on the Project, for example de-risking a new venture or accelerating the project timeline.
Payment Arrangements
Grant funding for approved projects will be paid in arrears, in agreed instalments on production of invoices as detailed in the Grant Agreement.
Of the total funding award, 5% will be retained and payable on production of certificates at Project end (completion certificate; renewed Energy Performance Certificate; end of Project report).
If these arrangements will not support delivery of your project, please give an explanation as to why and suggest a proposed milestone and funding release schedule for consideration.
Please note that ‘advance works’ milestones will only be considered on an exceptional basis.
Section 4 - Strategic alignment
In this section you should indicate and explain how your project aligns with Aberdeen City Council strategic policies and action plans. A number of relevant interventions have been outlined and you should detail which, if any, your Project will deliver on.
The relevant interventions are adapted from Aberdeen City Council’s Local Outcome Improvement Plan, Net Zero Aberdeen Routemap, City Centre Masterplan and Union Street Empty Shops Action Plan.
It is not essential that the Project delivers on any of these interventions, but those that do will be allocated additional points at the assessment stage.
Section 5 - Equality and diversity
Provide information about how your project is open and encourages diversity and how it removes potential barriers allowing for equal opportunity. Describe ways in which your organisation does, or will, consider and seek to improve the impact on the people connected with the project be that employees, customers, suppliers and the wider community.
If your organisation has n equality and diversity statement or policy, please attach this in your application submission or refer to Aberdeen City Council’s Diversity and Equality Policy.
Section 6 - Project deliverability
We need to know that the project as described is deliverable and has a good chance of success. Please provide details of who will project manage the works and their experience of delivering similar projects. If known please include who will be contracted to deliver the works, confirming their capacity and capability to do so.
It is important that you have robust processes, especially around project finance that will enable you to submit reports which include a breakdown of eligible grant-funded expenditure against total expenditure. Please describe how you will approach this. We also need to know what your governance structure is.
Please give the expected timeline for the project to include dates from initial application through to quotation and appointment of contractors, start and end dates for works, and finally the expected occupation of the unit.
Please give details about how the property will be used on completion of the Project. Details from the Business Plan of the new tenant should be provided, or it can be attached in full to the application.
Details of the lease being offered to the new tenant should be provided, or a copy of the lease can be attached to the application. Given the fund objectives, a lease at commercially- attractive rent levels, of minimum term 5 years and offering incentives such as a rent-free period will be scored highly at assessment stage. Where the term is less than 5 years, justification should be given.
Section 7 - Risk
Please describe what you perceive to be the main risks to your Project and what mitigation plans you have in place. If a Risk Register has been completed for the Project please include this as a supporting document.
At a minimum we are expecting each project to consider cost contingencies and expand on:
- Cost increases
- Material availability
- Time delays
- Contractor availability and/or Business Recruitment
- Meeting costs not covered by the Grant Scheme i.e. revenue and maintenance costs
Section 8 - Documents and statements
Alongside your application form, you should submit the following documents and confirm on the application that you have done so:
- Proof of ownership (mandatory if landlord applicant)
- Proof of lease
- Supporting Letter indicating consent of the grant application and work as proposed in Section 2 from landlord (mandatory if tenant applicant)
- Proof of additional project funding secured (mandatory – a signed confirmation letter or similar)
- Equality and Diversity Policy
- Risk Register
- Business Plan
- Any other supporting materials – information about your Organisation, a marketing plan, relevant consultation, stakeholders/partners information or evaluation of previous projects
Section 9 - Procurement
How to do business with Commercial & Procurement Shared Services will provide information on procurement and thresholds.
Section 10 - Public subsidy
Provide a breakdown of all public funding received by the organisation in the last 3 years. This is to ensure the public subsidy threshold has not been exceeded. UK subsidy control regime page will provide more information.
Section 11 - Declaration and use of your information
Please read the data protection statement and declaration carefully and sign and date the form before submitting by email to unionstreet@aberdeencity.gov.uk
What happens next ?
All applications will be assessed by officers within the Project Team (see notes on scoring below) with the final decision on fund allocation at the discretion of the Project Review Panel including Chief Officers.
The Project Review Panel will meet monthly to make funding decisions and applicants will be notified of the outcome thereafter.
Grant agreements will be issued to successful applicants as soon as possible.
Unsuccessful applicants will be provided with feedback on their submission and, where this can be addressed, have the right to reapply within the Project timescale.
Notes on scoring
Applications received to the Grant Scheme will be scored against the core objectives as detailed at the beginning of this Guidance, and funding awards prioritised accordingly.
The Grant Scheme offers funding for the specific purpose of reconfiguring these vacant units for a new use; providing capital funds that a new tenant may not have available to do the works required; de-risking (to an extent) lease commitment by new tenants; and sustainably enhancing the ‘stock’ of units on Union Street to allow new ventures, be they retail, cultural, hospitality or office space, to embark on trading.
The vast majority of Union Street ground floor units are privately owned. The match funding element of the grant award aims to leverage private sector engagement and investment in Union Street, acting as a catalyst for regeneration and reactivation of spaces which subsequently will increase interest and footfall on the street.
The Grant Scheme is borne from the Council’s Empty Shops Action Plan. Therefore applications to the fund which will support delivery of the Plan’s programme areas (distinctive Aberdeen; culture and heritage; net zero Union Street; enterprising Union Street) will be scored highly. Key outcomes which will be measured include the m2 of floor space improved; number of new jobs created; and the reduction in CO2 emissions from the improved units.
With support in promoting and raising awareness of the Grant Scheme from city stakeholders, including Our Union Street, we encourage a collaborative approach to applications between landlords and new tenants. Sustainable new ventures on Union Street, supported by commercially attractive rent levels and flexible lease terms, will ensure impact from the Grant Scheme and score highly.
The Grant Scheme is being offered over the 2024/25 and 2025/26 financial years.
Interest and applications will be evaluated and monitored during this period and there is scope that the Fund conditions and priorities may change. It is hoped that the Fund will result in a reduced number of vacant units on Union Street and consequently, increased footfall and a revitalised city centre offering.