£3.2 million grant for funding shortfall at Lews Castle
2 May 2015
A £3.2 million cash shortfall which threatened rescue plans for the Lews Castle in Stornoway has been plugged.
Western Isles Council as well as Highlands and Islands Enterprise (HIE) have stepped in with extra money.
Both bodies previously funded architectural works to the castle’s ground floor plus construction of an adjoining modern new Hebridean history and heritage centre.
The costs of the overall project has soared to £18 million overall.
The latest funding gap was previously described as posing a “critical” risk by the council.
Negotiations over the financial blackhole have been going on for nearly a year.
Development agency HIE has now announced an additional £1.7 million grant while the isles’ authority will contribute a further £1.5 million.
The latest tranche of money is required to undertake structural repairs and to build
26 rooms and plush self-
It also includes fitting out of the castle’s restored ground floor with a commercial kitchen, café, shop and bar area.
Natural Retreats -
Council leader Angus Campbell said the last year was very anxious time trying to find ways of shoring up the funding shortfall.
Mr Campbell said: “We were waiting for the last brick in the wall -
“Its been a very hard road to get here but we now have a fully funded programme in place.
“The council has gone out of its way to make this happen and has put in a lot of its own money.
Gordon Macdonald, HIE’s senior development manager, said: “This is a very exciting project which promises to develop the potential of the Lews Castle as both a cultural and economic asset and will benefit the islands’ communities by creating employment, increasing tourism and further developing the Outer Hebrides as a world class destination.”
He said HIE was “delighted to support this phase of the project as it takes another significant step forward.
“The new facilities will be a huge asset for the island community and a major attraction for visitors to the islands and we look forward to seeing Lews Castle return to its former glory.”
The funding issues delayed plans to publicly open the new museum and restored ground floors of the castle in the summer. The date has been pushed back to October.
The hotel and visitor apartments should be finished by spring 2016.
The project has been dogged with recent controversy after it emerged the council
quietly changed the initial proposals for a hotel into a self-
The local authority admits the bigger, outside tourism operator will take trade away from some existing hospitality providers but insists there would be an overall boost to the local economy.
