Plans for the proposed £40 million Ayr Care Village have been officially scrapped, ending years of debate over the troubled project. South Ayrshire Council confirmed the decision this week, citing a critical “lack of funding” after NHS Ayrshire and Arran (NHS A&A) withdrew financial support. Opposition councillors have blasted the now-abandoned development as a “failure from the start,” arguing that warnings about the project’s feasibility were ignored.

Concerns over the care village’s viability first emerged in 2023, when the Local Democracy Reporting Service revealed that NHS A&A could not contribute capital funding. The health board insisted on a “cost neutral” rent agreement, making the proposed joint venture unworkable. The ambitious project had been conceived as an alternative use for the former Hourstons department store and Arran Mall, a prime site in Ayr’s town centre that was once considered for a new leisure complex.

Assistant Director of Planning, Development and Regulation, Chris Cox, outlined the discussions between the council, NHS A&A, and the Health and Social Care Partnership. She explained that while a smaller 2,600-square-metre facility offered “limited benefit,” a comprehensive care hub integrating GP services could have delivered “significant benefit.” However, the estimated £38 million cost proved prohibitive. NHS A&A maintained its stance that only a cost-neutral lease would be acceptable, a position deemed untenable. Cox confirmed that NHS A&A could not commit any ongoing revenue, rendering the scheme non-viable.

Financial details presented to councillors revealed that £6.7 million had already been spent since 2018, mainly on property acquisitions and demolition work costs that would have been incurred regardless of future development. A further £140,000 went to consultancy fees. Councillor Bob Shields questioned the council’s persistence given NHS A&A’s early reluctance to fund the project. Cox clarified that NHS involvement had been conditional on preparatory work confirming viability, which ultimately exposed the funding gap.

Reactions among councillors were deeply divided. SNP Group Leader Julie Dettbarn welcomed closure, stating she was “relieved to see a line drawn under this finally,” emphasizing that NHS A&A had been clear from the outset about its lack of funds. Labour Councillor Brian McGinley, however, expressed anger, saying he was “not relieved… rather angry about it,” calling for transparency and accountability over the land’s costly mismanagement. Labour Leader Duncan Townson stressed the urgent need for affordable housing, warning that the site must not fall into neglect like the derelict Station Hotel. Meanwhile, Cllr Hugh Hunter called the decision “disappointing” but saw “a wonderful opportunity to do something new and meaningful.”

Looking ahead, council officers will now develop residential redevelopment options for the site, with recommendations expected by March. Demolition of remaining structures is scheduled to begin in the spring, supported by existing consents. Cox confirmed that options include selling the land to private developers, pursuing council-led housing projects, or adopting a mixed model. The council’s pivot marks a decisive end to one of Ayr’s most controversial planning sagas — and perhaps the beginning of a new chapter for its struggling town centre.