One Billion Pound Boost For Glasgow
3 July 2014, 18:47
David Cameron has announced a £500 million funding boost for Glasgow.
The Prime Minister has called on the Scottish Government to match the commitment, which will be invested in infrastructure and job creation. The Scottish Government has said it will do so.
The Glasgow City Deal is an agreement between the Treasury and Glasgow City Council which will also see local authorities in the area contribute £130 million.
That will see the funding increase to around £1.1 billion.
A joint article by Mr Cameron and Chief Treasury Secretary Danny Alexander said: "Glasgow plans to create a £1.1 billion infrastructure fund that will support projects such as the city centre-airport rail link, major improvements to the region's roads and bus network, and the development of new employment sites.
"The UK Government is offering £500 million of new funding to support this genuinely ambitious proposal, with local authorities in the region providing a further £130 million. Building on this significant investment, we are inviting the Scottish Government to match the UK Government contribution.
"This vote of confidence in Glasgow will also help generate private sector money so businesses can flourish.
"In exchange, Glasgow will take active measures to further reduce unemployment and help move people in low-paid jobs into higher-paid ones.
"These are genuine powers that will change the fortunes of people across the region by creating new jobs, improving transport networks, boosting businesses and providing skills to young people and the long-term unemployed.''
A spokeswoman for the Scottish Government said it had tried several times to "engage with the UK Government to secure the best outcome for Glasgow'', and looked forward to seeing the details of the city deal.
"This represents £25 million per annum over the next 20 years. The Scottish Government has been making substantial investment in Glasgow over the years, including over £380 million towards the Commonwealth Games,'' the spokeswoman said.
"We will be working to ensure this UK proposal dovetails with the work of the Scottish Cities Alliance and our existing investment in infrastructure. The Scottish Government is working individually and collectively with all Scotland's cities to optimise economic growth for the benefit of the whole of Scotland.''
Councillor Gordon Matheson, leader of Glasgow City Council, said: "This is fantastic news for Glasgow and the Clyde Valley. It will help us to move to the next level in terms of economic growth for the city region.
"We have been working closely together with the UK Government on this project for some time, and I am delighted to say it has borne fruit.
"The City Deal will bring tens of thousands of jobs, encourage growth and improve our competitiveness to bring benefits across the whole of the Clyde Valley area for the next 20 years.''
Stuart Patrick, chief executive of Glasgow Chamber of Commerce, said: "We endorse the principal of City Deal on two counts.
"Firstly, it will involve investment in economic infrastructure across the local authorities that make up the real Glasgow economy, bringing local authorities together to promote economic growth.
"Secondly, it requires firm discipline in agreeing the projects giving the local authorities a genuine incentive to choose projects that improve the economy and create jobs.''