Union Street Funding and City Centre Next Steps

Over £1 million of funding from the Scottish Government has been awarded to permanently transform Union Street into an accessible pedestrianised space. 

A report on the next steps of a thirty-year strategy to improve Dundee City Centre reveals that Transport Scotland has recently confirmed the construction funding grant for this financial year. 

This will enable the final phase of the Union Street project to be undertaken, marking the culmination of a journey that began with the removal of through traffic in the summer of 2020. 

Councillors will also hear that a masterplan for the Eastern Quarter of the City Centre has been developed, and that environmental improvements are planned for Murraygate including lighting upgrades, new paving, refurbished street furniture and improved wayfinding. 

The City Growth and Infrastructure Committee will consider an update on the City Centre Strategic Investment Plan (CCSIP) which is helping to shape plans for improvement and growth up to 2050. 

Recent developments in the City Centre are outlined including: 

• Social housing completions at Murraygate and social housing projects underway at Thorter Row, Gellatly Street and Trades Lane. 

• Completion of BT Headquarters on West Markegait 

• Openings of major new stores at Overgate 

• Launch of LiveHouse event space 

• Youth diversionary activities in City Square 

• Discussions with City Centre Stakeholders regarding proposals for a business led Business Improvement District (BID).  

• New programme of Christmas activities including lights switch-on event  

Cabinet Secretary for Transport Fiona Hyslop said: “I’m pleased that over £1 million from the Scottish Government’s Active Travel Infrastructure Fund will support the final phase of the Union Street transformation in Dundee. This investment will help create a high-quality, accessible public space that prioritises walking, wheeling and cycling, while enhancing the character and connectivity of the city centre.  

“This project is part of a further £12.9 million allocated for construction-ready active travel schemes, and it reflects our commitment to building healthier, more inclusive communities.   

“In 2025-26, the Scottish Government will invest over £188 million in active and sustainable transport. This funding will help people save money, improve health, and support our efforts to tackle the climate emergency and reduce emissions.” 

Committee convener Councillor Steven Rome said: “A number of exciting developments have come to fruition recently, with the transformation of Overgate and opening of LiveHouse showing real faith by investors in Dundee city centre as a destination of the future. 

“While many challenges still remain, I am heartened by the progress that we are continuing to make. 

“Confirmation of funding from the Scottish Government for Union Street will help us to complete this ambitious project which started during the pandemic and has been co-designed by local people and businesses. 

“Improvements to Murraygate also represent an important step in the long-term strategy to respond to the challenges and emerging opportunities in this part of the city centre. 

“The CCSIP is helping to guide us to new ways to think about the use of spaces for the years ahead.” 

The CCSIP covers five broad themes of:  

• Living 

• Working 

• Visiting 

• Connectivity 

• Public Realm 

The full plan can be found online here 

Dundee City Council’s City Growth and Infrastructure Committee meets on Monday November 17, when it will also consider tender worth nearly £1.9 million in total for the work at Union Street. 

A bid by Tayside Contracts is recommended, with £1.1 million of funding coming from Transport Scotland, alongside money from the council’s capital plan. 

Work is due to take place from January to September next year to fully upgrade the street. The project will also provide improved crossings over Nethergate to the north and Yeaman Shore to the south. 

What was once a road will be transformed to high-quality, accessible, level public space with seating, shelters, a public events space, planting, cycle parking, space for outdoor eating and drinking and new and improved lighting.