The Scottish Government has pledged to award £1m to Perth and Kinross Council (PKC) to help meet costs incurred by the fatal fire at 41 Scott Street.
A man died and a number of people were injured in the city centre fire, which started in the early hours of June 14 and destroyed several flats and popular Perth pub, The Royal Bar.
To date, the council has spent £934,000 in the aftermath, with costs expected to rise to £3.2m.
The majority of the costs relate to the demolition and the reinstatement of the street-scape. The council is currently in talks with insurance companies to recover costs and has appointed its own loss adjuster to represent PKC in complex discussions.
However, councillors were previously told the costs which would probably be irrecoverable were around welfare support, which the local authority undertook as part of its statutory responsibility.
Council leader Eric Drysdale recently wrote to the Minister for Public Finance Ivan McKee for financial assistance “urging a quick and clear answer in terms of the provision of support from the Scottish Government for this work that has been done by the council since the tragic fire in Scott St”.
A total of 55 households were rehoused. As part of its response, PKC provided emergency support to both residents and businesses in the surrounding area.
Demolition work continues and several residents remain in temporary accommodation.
At a meeting of PKC’s Finance and Resources Committee on Wednesday, November 26, the council’s finance chief Scott Walker told councillors of the Scottish Government funding allocation.
Mr Walker said: “Just this morning, funding from the Scottish Government of £1m was confirmed and this will be paid on December 15.”
SNP council leader Eric Drysdale was delighted.
The Perth City Centre ward councillor said: “I’m delighted to see my letter to the Minister has secured £1m of financial support from the Scottish Government towards the costs associated with the tragic Scott Street fire.
“I remain committed to doing what I can and need to do to secure the best outcomes for Perth and Kinross as a whole.”
He added: “I would like to extend my thanks to officers for working together to deliver this funding.”
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