South Ayrshire Council funded a £750,000 business support programme for Ayr town centre after a fire at the former Station Hotel in September 2023, which disrupted trade and reduced footfall in the area. The council approved the relief package in November 2023, redirecting discretionary funds originally set aside for Covid-19 support.
The money backed several projects, including the Gateway to Ayr Town Centre Shopfront Improvement Programme, a refurbishment of the Merlin Cinema, the rejuvenation of Newmarket Street, and a programme of community engagement activities. The council said the initiative helped drive a recovery in town centre activity: visitor numbers to the Cutty Sark attraction doubled from 15,000 to 30,000 over the following year, which it attributed to a successful summer events programme.
What’s happened since
The Station Hotel building itself remains unresolved. The council completed emergency safety works at the site in June 2024, removing the fire-damaged tower and the southern section of the building, but as of 2026 the site is still derelict and a long-running legal dispute with the building’s owner has stalled any permanent solution. Local politicians, including Ayr’s MSP, have since called on the council to use compulsory purchase powers to force progress, and the council has said it remains committed to finding a way forward.
Investment in the wider town centre has continued in parallel. South Ayrshire Council has since announced a further £417,000 for a set of “early win” projects under its Ayr Town Centre Framework, including £222,000 for a Shop Front Improvement Scheme, £70,000 towards the Astoria Ayr cinema refurbishment, and £90,000 for improvements to Newmarket Street — extending several of the same schemes the original 2023 relief package started.
George Hunter, the council’s Assistant Director of Communities, said at the time that challenges remained but that early results pointed to a positive trajectory for Ayr’s economic recovery, with the council planning to continue monitoring the initiatives and adjust its approach as needed.
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Sources: Daily Record; South Ayrshire Council; Ayrshire Daily News.
