By Richard Johnstone | 21 August 2014
A £1bn City Deal for Glasgow has been agreed by council leaders and both Scottish and UK government ministers, the first such pact to be reached outside England.
The flagship agreement includes the development of a £1.13bn fund to improve the Clyde Valley region’s economic infrastructure over 20 years. The UK and Scottish governments will each provide £500m to the scheme, while the town halls will borrow a further £130m.
Action will also be taken to develop a regional plan to help groups that have been identified as suffering from labour market disadvantages find work, while business support focused on the life sciences sector will also be boosted.
The deal is expected to boost the economy by £2.2bn annually and create 28,000 permanent jobs. Signing the agreement, Glasgow City Council leader Gordon Matheson called it momentous.
He said: ‘The benefit this funding will bring to our infrastructure, economy and labour market will be felt for decades through tens of thousands of new jobs and increased competitiveness. I look forward to working with all of our partners to deliver this hugely important project in the years to come.’
Leaders of the seven other local authorities participating in the deal – East Dunbartonshire, East Renfrewshire, Inverclyde, North Lanarkshire, Renfrewshire, South Lanarkshire and West Dunbartonshire – are also part of the pact. However, East Dunbartonshire was not part of the transport investment plans.
Greg Clark, UK minister for universities, science and cities, said the deal was one of the most significant so far agreed. This is the latest in a second wave of agreements that follow the original round of eight with the members of the Core Cities Group. Glasgow is also now a member of this group, having formally joined last week.
‘It places Glasgow in the vanguard of the UK's great cities who are driving forward the economic success of their areas with the encouragement and support of the government,’ Clark said.
‘Innovation, transport infrastructure, business support, investment in life sciences and skills for young people are all essential foundations for jobs and prosperity, which are being enhanced by this historic City Deal today.’
Derek Mackay, the Scottish Government’s local government and planning minister, added: ‘The funding will create jobs and help cement Glasgow's position as one of Europe's leading cities with a vibrant, thriving economy.’
