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Extensive fiscal office renovations in Elgin will ‘not be replicated’ after costs soar by £1.3 million

The Scottish Government says "lessons will be learned" from the work to decarbonise the South Street building.

Exterior of procurator fiscal office in Elgin.
Work on the procurator fiscal's office in Elgin was initially due to end in May. Image: David Mackay/DC Thomson

Extensive and vastly over-budget renovations to the procurator fiscal office in Elgin “will not be replicated”, the Scottish Government has confirmed.

Work has been ongoing on the South Street building since August last year to decarbonise the historic structure.

When the project was announced it was heralded as part of a “Scotland-wide commitment” by the Crown Office and Procurator Fiscal Service to embrace renewable energy.

However, costs on the project have soared from an initial £2.2 million to a projected £3.56 million – a massive increase of 61%.

The Scottish Government has now confirmed the Elgin fiscal office renovations are currently “under scrutiny” and will “not be replicated”.

Why are Elgin fiscal office renovations costing so much?

The Elgin fiscal office renovations have been commissioned to better understand the “deep retrofitting” of historic buildings.

Work has included replacing all the windows, installing a new heating system and insulating all external walls.

The building previously had solar panels installed to reduce its reliance on fossil fuels.

Looking down South Street with construction traffic.
Concerns have been raised about the impact on South Street footfall due to the two construction projects. Image: David Mackay/DC Thomson

Inverness and Nairn MSP Fergus Ewing has criticised the £3.56 million spent on a building that was valued at just £275,000 in 2022.

The SNP veteran has welcomed scrutiny on the “eye-watering” sums being spent on the Elgin fiscal officer renovations – describing them as “misguided and absurd”.

He said: “I have long believed that the household implement of which the Scottish Government was in most dire need was a new broom.

“From what I have heard, I am pleased that we appear to have found, in the minister, that new broom and can secure value for money and avoid waste of money in investment in our public buildings in general.”

Fergus Ewing looking concerned while looking off camera.
Fergus Ewing has raised concerns about the spending on the project. Image: Sandy McCook/DC Thomson

Public Finance Minister Ivan McKee said: “Fergus Ewing has raised valid concerns about the value-for-money aspects of that particular investment: I have to say that I share those concerns very much.

“The project was intended to increase understanding of the technology and processes around deep retrofitting of historic buildings.

“As such, it will not be replicated, but the lessons that have been learned should support cost-effective delivery of future projects.”

When will fiscal office works be completed?

The extensive renovations of the South Street building were initially due to be completed in May.

Businesses on South Street have raised concerns about the impact the large project is having on footfall due to its proximity to the separate Gordon and MacPhail renovations.

It is understood fencing will be removed from the fiscal office during July.

During the works a small team has been based at Elgin police station while the rest have worked from home.

The Crown Office and Procurator Fiscal Service has repeatedly stressed it is committed to ensuring value for public money in all contracts.

However, it has also added it is committed to becoming carbon neutral by 2040.

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