A financial package worth up to £10 million to help the council, businesses and agencies rebuild and renew the part of the city affected by the Union Corner fire has been announced by First Minister John Swinney.

The Scottish Government grant scheme will support recovery efforts near Glasgow Central station where around 71 businesses were damaged or destroyed by the fire and remain within a safety cordon which is closed to the public.

Glasgow City Council will administer the scheme based on engagement with local businesses to understand how they have been affected.

Additionally, up to £1 million will be made available to help the council with demolition costs and the Scottish Government’s contribution to discretionary non-domestic rates Hardship Relief for those impacted will increase from 75% to 95%.

The First Minister said: “There has been significant disruption for people and businesses as a result of the devastating fire at Union Corner, including through the closure of Glasgow Central station. As I made clear in the immediate aftermath of the fire, the Scottish Government is absolutely committed to working closely with Glasgow City Council to ensure financial support was available.

“Some owners have lost their properties, in some cases their livelihoods, and others have been affected by access issues because of safety restrictions around the site. I am grateful to Glasgow City Council for talking to business owners about their circumstances, and that important work has established a clearer understanding of the extent of the support that is required.

“Following that engagement, I am pleased to confirm the Scottish Government will deliver a package of financial support, including up to £10 million to help businesses in this important part of Glasgow. The Scottish Government remains committed to working urgently with partners to ensure there is the fullest possible recovery in what is the heart of the city centre.”

Meanwhile, the leader of Glasgow City Council has said she would like more powers to protect the city's buildings in the wake of the Union Street fire.

Aitken said the fire highlighted some of the challenges Glasgow is facing. Speaking on BBC Scotland's The Sunday Show, she said: "We do have a challenge. We've got perhaps one of the biggest concentrations of heritage buildings in any city in the UK, the vast majority of which are in private hands," she said.

"We use compulsory purchase orders in Glasgow, more than all of the other local authorities in Scotland put together. But they are legally challenging and they are expensive as well, so there is a lot that is beyond the reach of the council.

"I would like us as a council to have more powers than we currently do. At the moment we have quite limited powers."

Aitken denied the city centre is in a poor state: “There's certainly a narrative that is pushed about Glasgow along those lines. But if you go into the city centre right now you will see unprecedented levels of investment taking place.

"There is investment from the public sector though the city deal and from the council ourselves. There's investment by private sector partners. There is investment by owners in the city."

She confirmed plans are underway for the compulsory purchase of the nearby Egyptian Halls and the condition of the whole of Gordon Street around Central Station's main entrance was being considered: "What I've asked my officers to do on Glasgow City Council is actually to masterplan that wider area. So there's a lot of work already planned for that area. I guess what's happened makes that job bigger but it also means that we want to involve a range of people, a range of expertise in making that plan and exploring the art of the possible."