Infrastructure Investment Plan 2015: progress report 2018-2019

Cities / Regions

Overview

City Region and Growth Deals are one of our key economic levers. They galvanise key partners to come together to drive regional economies in ways that go well beyond the investments that they deliver, leveraging local and regional intelligence about how best to drive inclusive growth.

In 2018-19, we signed Heads of Terms agreements for the Stirling and Clackmannanshire City Region and the Tay Cities Region. This represented an additional £195 million of investment, bringing the Scottish Government's total investment in City Region Deals to over £1.25 billon over the next 10-20 years. In addition, we also formally signed the Edinburgh and South East Scotland full deal document bringing it into delivery.

Glasgow City Region Deal
The Scottish Government is supporting all three strands of the Glasgow City Region Deal and contributing £500 million over 20 years to the Infrastructure Investment Fund. The Deal was signed in August 2014 and is approaching the first Gateway Review in December 2019.

The Deal empowers Glasgow and its City Region partners to identify, manage and deliver a programme of investment to stimulate economic growth and create jobs in their area, spreading the benefits of economic growth across Glasgow City Region, and ensuring deprived areas benefit from this growth. Additional to the infrastructure investment, the deal includes a £72 million life science and business support strand and a £24 million employability strand.

The vast majority of the 27 projects are underway, with a number having already been completed, such as the World-leading Imaging Centre of Excellence, which opened in 2017. Construction is ongoing for several other investments, such as the Avenues project, which is improving public realm around the city centre.

Aberdeen City Region Deal
The Scottish Government along with the UK Government have committed to investing up to £125 million each in the Aberdeen City Region Deal alongside further contributions from Aberdeen City and Aberdeenshire Councils and Opportunity North East.

The deal was signed in November 2016 and is now well underway. The Scottish Government is working together with the UK Government and regional partners during the implementation phase. The Oil and Gas Technology Centre has been in operation for over two years and has just recently launched the National Decommissioning Centre in conjunction with Aberdeen University, cementing Scotland's international reputation as a centre of decommissioning expertise. Business cases have also been approved for the two hubs for innovation and the projects are now either at the construction phase or seeking planning consent.

The Scottish Government will also invest a further £254 million in addition to the deal to deliver a more significant step change to the economy of the North East supporting Transport, Digital and Housing proposals.

Inverness City Region Deal
The Scottish Government has committed to investing up to £135 million in the £315 million Inverness City Deal and with the UK Government providing up to £53 million and the Council and regional partners a further £127 million over 10 years.

The deal will support a step change in digital connectivity, digital healthcare, skills, innovation and infrastructure in the region.

The deal was signed in January 2017 and is now underway. The Scottish Government is working together with the UK Government and regional partners moving into the implementation phase.

Edinburgh & South East Scotland City Region Deal
The Scottish Government is a full partner in the £1.3 billion Edinburgh and South East Scotland City Region Deal and along with the UK Government has committed to investing up to £300 million each in the 15 year deal. Regional partners, including the six local authorities and the region's universities and private sector, will contribute £730 million.

The Scottish Government's investment will contribute towards 41,000 new homes, 21,000 jobs and improve the skills of an estimated 14,700 people. The deal was signed in August 2018 and is now well underway. The Scottish Government is working together with the UK Government and regional partners during the implementation phase.

Business cases for seven of the projects have already been signed off by governments and the region's Joint Committee. One such project, the Bayes Centre, was formally opened in October 2018 and another, Edinburgh Futures Institute, is currently in construction as it looks to refurbish the former Royal Infirmary building at Quartermile.

Stirling and Clackmannanshire City Region Deal
The Scottish Government, UK Government and regional partners signed a Heads of Terms agreement on 31 May 2018. Both governments are each committing £45.1 million to the deal, with regional partners committing a further £123.8 million.

The Scottish Government's investments will include a £17 million contribution towards a Scottish Environment Centre, £15 million investment in Culture, Heritage & Tourism assets, £7 million in active travel improvements, £4 million to support the region's digital ambitions and £1.9 million for a regional skills and inclusion programme.

The Scottish Government is working together with the UK Government and the regional partners towards a full Deal Document and the implementation of the Deal.

The Scottish Government will also invest a further £5 million in addition to the deal to deliver a new business park at Kildean and to help unlock enabling infrastructure in Callander.

Tay Cities Region Deal
The Scottish Government, UK Government and regional partners signed a Heads of Terms agreement on 22 November 2018. The Deal will deliver over £700 million into the region, including £150 million each from both governments and investment from regional partners of £400 million.

This deal will support projects across the themes of skills, tourism, transport and innovation. Scottish Government investment includes £25 million for the Tayside Biomedical Cluster, £37 million for culture and tourism assets and £20 million for a Regional Skills and Employability Programme.

The Scottish Government is working together with the UK Government and the regional partners towards a full Deal Document and the implementation of the Deal.

The Scottish Government will also invest a further £50 million in the region to deliver a new cross Tay link road and a strategic regional Industrial Investment Programme.