Whitehall and councils clinch Solent city deal

12 Nov 13
Deputy Prime Minister Nick Clegg has revealed details of a £950m investment plan for Southampton and Portsmouth as part of a devolution deal between the cities and government.

By Richard Johnstone | 13 November 2013

Deputy Prime Minister Nick Clegg has revealed details of a £950m investment plan for Southampton and Portsmouth as part of a devolution deal between the cities and government.

The areas have reached an agreement with the Cabinet Office on extra powers for the region as part of the government’s City Deals programme, which is intended to devolve extra powers to municipalities.

The key part of the Solent pact is a commitment by the Ministry of Defence to transfer its sites on Tipner-Horsea Island to Portsmouth City Council for a nominal fee. This will unlock £831m of private and public sector investment.
In addition, £7m from the government’s Regional Growth Fund will be used to help unlock development at the Watermark West Quay site in Southampton, leading to a £90m investment.

The agreement comes after BAE Systems announced the closure of its shipyard in Portsmouth earlier this month, with the likely loss of over 1,000 jobs and other elements of the deal cover back-to-work services.

A Solent Jobs pilot scheme will be created to combine investment from the public and private sector to help 1,000 long-term unemployed people – who have been unsuccessful at finding work through the Work Programme – back to work. This £5.8m programme will be complemented by a £1m ‘rapid response service’, established by the Department for Work and Pensions to provide quick support to people recently made redundant, and a £3m marine and maritime skills programme.

Clegg said it was now ‘more important than ever for Portsmouth and Southampton’s economic recovery that Whitehall hands over power to local people who can decide how to invest millions of pounds and build a stronger economy in the region’.

He added: ‘The deal will help to create thousands of vital new jobs in the region, and every effort is being made, both in government and at a local level, to help the local area through a time of uncertainty. We have moved swiftly, shoulder to shoulder with local councils and businesses, to get this landmark deal signed so that Portsmouth and Southampton can reap the benefits quickly.

‘I would like to thank and congratulate local government and business leaders in the area for straining every sinew to make the City Deal happen.’

Yesterday’s announcement was made following negotiations between the government and leaders from Southampton, Portsmouth and Hampshire councils and the Solent Local Enterprise Partnership. It is the fourth of the second round of deals for cities, following those in Preston, the Thames Valley area and Ipswich. Agreements have already been reached with England’s eight ‘core cities' outside London.

Cities minister Greg Clark said the pact was ‘a landmark achievement’.

He added: ‘It brings into productive use prime maritime land that Portsmouth and Southampton have for many years wanted to be available to attract jobs and investment. It will allow the unique advantages of the Solent to be available to many more firms creating skilled jobs.

‘The £950m of private and public investment is a huge vote of confidence in Portsmouth and Southampton.’

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