A deal that will generate tens of thousands of new jobs in Glasgow and Clyde Valley is set to begin work next week.
After being approved by ministers at the UK and Scottish Governments, the £1.13 billion City Deal, the biggest of its kind in the UK, will fund major infrastructure projects, drive innovation and growth and tackle problems in the region’s labour market. The developments are anticipated to create a network of employment that will significantly benefit the local economy in the coming years.
With the assurance framework now approved, both the UK and the Scottish Government will give the City Region £500 million in grant funding, with local authorities borrowing an additional £130 million.
It has been forecasted that the City Deal will provide the City Region with an increased Gross Value Added (GVA) of £2.2 billion per annum (4.4%); create 15,000 construction jobs during construction work; 28,000 permanent jobs post-construction and will stimulate £3.3 billion of private sector investment.
Plans for individual projects within the City Deal are to be developed.
Councillor Gordon Matheson, Chair of the Glasgow and Clyde Valley Cabinet, said, “Securing this deal for the region was a momentous achievement.
“This funding will bring benefits to our infrastructure, economy and labour market for decades to come by creating tens of thousands of new jobs and increasing our global competitiveness.
“The work can now begin and I look forward to collaborating with all of our partners to deliver this hugely important project.”
Chief Secretary to the Treasury, Danny Alexander, said, “This government created City Deals to give cities across the UK the freedom they need to create jobs, fund infrastructure and boost economic growth, and I’m delighted that I’ve been able to sign off this major step in Glasgow’s City Deal.
“The UK Government’s investment of £500 million is a great deal for people in Glasgow and beyond: the Local Authorities involved in the deal estimate that it will boost the city’s GVA by 4.4%, bringing billions of pounds of private sector investment and jobs to the city and Clyde Valley, demonstrating the value of central and regional governments working together to create a stronger economy and fairer society across the UK.”
The eight local authorities participating in City Deal are Glasgow City Council, East Dunbartonshire Council, East Renfrewshire Council, Inverclyde Council, North Lanarkshire Council, Renfrewshire Council, South Lanarkshire Council and West Dunbartonshire Council.