Business case to be drawn up for Mull school and community campus
Argyll & Bute Council is to develop an outline business case for a £43 million proposed school and community campus on Mull, despite fears that borrowing costs could inflate the bill to £113 million.
Councillors were yesterday presented with a report on the potential costs and benefits of the campus, which is described as “one of the most substantial community infrastructure projects on the island in a generation”.
The cost of building the campus is estimated at £43 million. The council secured LEIP (Learning Estate Investment Programme) funding from the Scottish Government, which would provide up to 50% of eligible costs.
However, the council would have to provide the full funding upfront. The costs of borrowing such a significant level of funding, as well as covering costs not eligible for LEIP support, could increase the demand on the council to as much as £113 million over the lifetime of the loans.
Yesterday’s decision by councillors means that the council will develop an outline business case, including factors that will significantly impact costs such as the preferred site selected, design of the campus, community facilities and availability of infrastructure.
This outline business case will be developed with community input, including a site selection, process with community and statutory engagement the first step.
The full business case, including more detailed proposals for the campus and costs, will be considered again by councillors in late 2026, and at other significant milestones before the campus could move to a construction phase, which is provisionally forecast for 2027 with opening late 2028.
Councillor Audrey Forrest, policy lead for education, said: “We would like to deliver a campus for Mull. There’s no question about that. It has the potential to deliver important benefits for our young people, the island and wider area. At the same time however we have to be realistic about what is possible.
“Our decision today is about remaining ambitious for Argyll and Bute, and doing what we can as a council to deliver what communities want.
“While more difficult decisions lie ahead, this is an exciting next step towards a campus for Mull.”