By Richard Johnstone | 20 January 2014
Plymouth’s city region is to receive a £34m funding package from government to boost the region’s marine and advanced manufacturing industry as part of its City Deal with ministers.
The agreement signed between local authorities of the southwest peninsula and the Cabinet Office on Friday is intended to create more than 9,000 jobs by freeing up public sector land to allow firms to grow.
Under the pact, land at the Devonport Naval Base in the city will be transferred to Plymouth City Council and the Heart of the South West Local Enterprise Partnership. The spare land will then be made available for development by marine companies, as it has access to deep water which is needed for marine research, development, and testing.
As part of the scheme, £19m of public sector funding will be available to provide the infrastructure needed for development, including £9m from central government. It is hoped that as much as £262m of private sector investment could be secured over the long term.
Signing the deal in Plymouth, cities minister Greg Clark said local politicians, businesses and the Ministry of Defence have worked together on the agreement.
‘Plymouth is one of the United Kingdom’s biggest assets – known all over the world for experience and excellence in marine engineering, which is one of the fastest growing markets across the world,’ he said.
‘This deal draws on that success and sets Plymouth up to be an engine of growth for the national economy.’
Deputy Prime Minister Nick Clegg added that the land transfer would help kick-start the local economy.
‘This City Deal will breathe life into Plymouth’s maritime and manufacturing sectors, boosting jobs and growth in the whole region.’
In addition to the support for economic infrastructure, the programme will include £5.8m of new government grants to support marine businesses through the Regional Growth Fund.
A £3.5m investment will also be made to improve the skills of young people so they can get into the workforce as part of funding for a so-called Deal for Young People.
Five local authorities have signed the agreement: Plymouth City Council, Cornwall Council, Devon County Council, Somerset County Council and Torbay Council.
This forms part of the government’s second round of City Deals, in which 20 areas were invited to negotiate pacts with government. These have followed an initial phase when powers and responsibilities were devolved the eight core cities in England.
