South Ayrshire Council’s gift card scheme will be extended – despite shoppers buying fewer than 200 of the 5,000 available.
The scheme, run by the council and Scotland’s Towns Partnership, works similar to the gift cards you can buy in shops; loading money on to them and then using them like a debit card.
The key difference is that the money can be spent at any of the local businesses signed up to the scheme.
By April, 112 businesses had signed up to the project.
However, the uptake by the public has been less impressive with 196 cards purchased since the launch in South Ayrshire last November.
A total of £9,640 was put on the cards which works out at just under £50 per card.
The initial funding for the scheme came from the Scottish Government but there has been no confirmation that this investment will continue beyond September.
A report to cabinet stated: “Local businesses participating in the gift card initiative have the potential to unlock a new level of local spending which is important as businesses recover from the impact of the pandemic.
“The gift card can be used in any type of business, and online or offline – so long as the merchant has a ‘bricks and mortar’ presence in the area.”
One of the first authorities to operate the scheme was neighboring East Ayrshire, which launched its card in August 2020.
In the first year of operation, a total of £104,000 was put on East Ayrshire gift cards. Over £80,000 was spent by the council itself, with cards distributed to families in need of support.
A further £22,202 was spend by individuals and £13,325 by local companies as part of a reward scheme. The South Ayrshire scheme does not have this latter option but officials are considering it.
South Ayrshire Council will be looking to make similar progress to East Ayrshire in the second year of operation.
East Ayrshire saw a major increase in support for the gift card in 2021/22. This included individual purchases rise to £32,416 and company purchases up to £18,625.
It also massively increased its distribution – up from £80,000 up to £226,000.
South Ayrshire Council could be faced with a £600 monthly bill for the operation of the scheme, totalling £7,200 for the year.
It also cost £3,000 to produce 5,000 gift cards, with similar outlays expected for future years.
The report to cabinet continued: “The economy and regeneration service continue to target businesses that have the potential to benefit from the aforementioned campaigns – for example, hotels, restaurants, cafes, bars, cultural and heritage sites, town centre shops, coastal experiences.
“Discussions are taking place with the gift card provider on how identified national chain store could be onboarded to ensure a better balance of food and convenience stores in Maybole, Girvan and surrounding areas.
“Opportunities are being investigated to utilise the gift card for corporate rewards and recognition/incentives by South Ayrshire anchor institutions.”
Council leader Martin Dowey gave his support to the scheme but insisted that more needed to be done to ‘encourage’ uptake.
Girvan councillor Alec Clark also backed the extension, adding: “It encourages people to stimulate the local economy. We need to publicise that the scheme exists and get the message out to the general public that this can benefit themselves and their community.
Councillor Stephen Ferry added: “It is clear there is not much uptake.”
He added that the extension would allow the council to see whether there is an improvement after a full year.
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