Councillor Mark Macmillan proposed in October that Paisley become Scotland’s first-ever town centre enterprise area — and asked Holyrood Finance Secretary John Swinney to make it possible.

Scotland already has 15 similar schemes, based on life science, renewables and manufacturing, allowing businesses within designated sectors to access financial incentives to encourage investment and growth, but none are in Renfrewshire.

But in a response received from Fergus Ewing, Minister for Business, Energy and Tourism, the government have said they won’t back the plans because they think some firms could benefit from reduced business rates without creating new jobs.

A spokesman for the Scottish Government said: “Unfortunately we were unable to support the enterprise area as the proposals could have had the effect of allowing some existing companies and major retailers to gain rates relief without generating any significant economic growth or jobs.” However Cllr Macmillan blasted the rejection, saying it was “disappointing” that the government in Edinburgh can’t see what Paisley can become.

He added: “Renfrewshire Council is taking forward ambitious proposals to transform the area’s future by using the town’s outstanding heritage and cultural assets to drive a wide-ranging programme of regeneration over the next decade.

“My suggestion was for Holyrood to support that by creating a new category of enterprise area around creativity and culture – and make Paisley the first of its kind.

“This scheme would have allowed business to make the most of Paisley’s assets – such as our proud textile and architectural legacy, thriving events programme, and the international reputation of the University of the West of Scotland.

“The government’s decision not to back it is a let-down for the people of Paisley as we attempt to establish the town on the map as one of Scotland’s premier cultural and heritage tourism destinations.

“We need the government in Edinburgh to give local councils full responsibility to pursue innovative ideas designed to meet the needs of those areas.

“A great example would be the £1.1bn Glasgow and Clyde Valley City Deal, which will see seven local authorities taking the reigns on a range of far-reaching infrastructure projects.

“The Scottish Government’s proposals to let councils vary business rates don’t go far enough and won’t address the problems many local ratepayers face — we need meaningful powers to create and implement local solutions.

“In the meantime, we will continue to fight for the best deal for Paisley and Renfrewshire, whether the Scottish Government is willing to support us or not.” A spokesman for the Scottish Government said added that they had made more than “£20m available to the council for an Affordable Housing Supple Programme.

“Renfrewshire Council received £2 million from the Regeneration and Capital Grant Fund to support the restoration of the Russell Institute, a Category A listed building. The restoration will provide flexible office space that would suit a broad range of users from the public, private or voluntary sector,” he added.

“The council is also now involved in one of the town centre planning pilots which will explore the potential to develop a Simplified Planning Zone (SPZ) a town centre. The Scottish Government will provide £15,000 to support the development of this and to help share learning amongst planning authorities on how to establish a SPZ for a town centre.

“Between 2012-2015 the Scottish Government has made £20.390 million available to Renfrewshire Council from the Affordable Housing Supply Programme to provide affordable housing throughout Renfrewshire. Of this a total of £940,430 was invested to provide 27 new homes at the former Arnotts site in Paisley town centre.