‘Ambitious’ City Deal to bring 21,000 jobs to Edinburgh

The £1.1bn Edinburgh and South East Scotland City Region deal, which will drive investment and address inclusion across the area is being signed this afternoon by First Secretary of State and Minister for the Cabinet Office, Damian Green; Cabinet Secretary for Economy, Jobs and Fair Work, Keith Brown and Leader of the City of Edinburgh Council, Adam McVey on behalf of local authority partners (East Lothian, the City of Edinburgh Council, Fife, Midlothian, Scottish Borders and West Lothian). David Mundell, Secretary of State for Scotland, will also attend the event.

The heads of terms city deal is an agreement between the Scottish Government, the six local authorities, the UK Government and regional partners. Both governments are committed to jointly investing £600m over the next 15 years and regional partners have committed to adding up to £500m, overall representing a deal worth £1.1bn. In addition, the deal will generate over £5bn worth of Gross Value Added (GVA) over the same period.

Key commitments

• £300m for world leading data innovation centres
• £140m for crucially needed A720 city bypass at the Sheriffhall Roundabout and transport improvements across west Edinburgh
• £20m capital funding for new world class concert hall
• £25m regional skills programme to support improved career opportunities for disadvantaged groups
• £65m of new funding for housing to unlock strategic development sites

Speaking ahead of the official signing ceremony Economy Secretary Keith Brown has welcomed the latest city deal which will transform the region’s economy and provide opportunities for all areas to grow. The Scottish Government is investing £300 million in the deal in addition to funding from the six local authorities, University of Edinburgh and the UK Government.

Mr Brown said: “The Scottish Government has been fully committed to this deal and I am very pleased that we have been able to get to the stage of achieving such an ambitious deal for the region.

“Edinburgh and its city region is an area of huge importance to the Scottish economy.  It contains over a quarter of Scotland’s population and contributes £33 billion to the Scottish and UK economies.

“The Scottish Government will be investing in the region’s workforce and will invest up to £25 million for an Integrated Regional Employability & Skills Programme which will reduce skills shortages and gaps, delivering opportunity for people across Edinburgh, the Lothians, Fife and the Borders.

“The Scottish Government has also committed £140 million to transport projects including £120 million for improvements to the A720, Edinburgh City bypass and £20 million for improvements at West Edinburgh.

“Providing decent housing is a priority for the Scottish Government so we will invest £65 million into new housing for the region.

“We will also be investing in innovation and that will focus on ensuring businesses and communities across the region can benefit from opportunities through world class business infrastructure.

“Festivals are a crucial part of the culture and economy of Scotland, which is why we are investing £10m towards a new concert venue for the city. We will reinforce Edinburgh’s reputation as a leading centre for music and the performing arts through investing in the proposed IMPACT project, working with existing philanthropic and commercial partners to deliver a new world-class performance venue in the heart of Edinburgh, and a new home for the Scottish Chamber Orchestra.

“In addition I look forward to discussing with partners how we can further support Edinburgh’s festivals.

“Taken together these projects will help the region continue to thrive and grow, fulfilling our ambitions for the region to be one of the fairest and most inclusive areas in the country.”

City of Edinburgh Council Leader Adam McVey, speaking on behalf of all of the local authority partners, said: “I am delighted that this ambitious deal for the region has now been agreed, creating up to 21,000 new jobs. This will allow us to transform the area delivering high quality jobs, housing, critical infrastructure, a new skills programme, and a world class concert hall. 

“The significant investment in innovation and culture is also to be welcomed as they are both hugely important to the region’s economy. This will put us at the forefront of data driven innovation ensuring we are ahead of the game in a technology driven world.

“We are home to world class research and development activity, much of which acts as an anchor for the development of new products and services through innovation in the private sector. As a world class festival city, Edinburgh attracts over £4m visitors every year adding over £1.3bn to the economy annually.

“Today’s signing is an important first step as we begin to work with both governments to deliver on the commitments in the deal to ensure the region is vibrant and inclusive going forward.”

Local MSP Ben Macpherson has also welcomed the announcement. The SNP MSP for Edinburgh Northern and Leith said: “It is brilliant news that after two years of hard work, this fantastic deal for Edinburgh and South East Scotland has been finalised, which will help drive economic growth and bring an abundance of opportunities to the region.

“We already have a strong and successful economy on which to build, and the SNP Scottish Government’s investment will be a huge boost to those who live and work in the Edinburgh region, with investment in skills, transport, infrastructure, housing, innovation and culture across the city, the Lothians, Fife and the Borders.

“Edinburgh is world famous for its festivals, and recognising the importance of music and the performing arts to our Capital city, the SNP Government has dedicated £10m from the deal to a new concert venue in the heart of Edinburgh.

“We want to make Scotland the best country it can be – and this deal ensures that Scotland’s capital city will play a full and successful part in delivering this vision over the next 20 years.”

While the deal has met with near universal approval, Edinburgh’s Green councillors have described the City Region Deal as a long way short of what it could have been.

Green councillor Melanie Main said: “Of course £600m is an awful lot of money, so any additional investment has to be welcome. However, the truth is that the offer is less than what was expected and what is missing is as important as what is included.

“On transport, the priority should be dramatic improvements to public transport, walking and cycling; instead the centrepiece is the Sheriffhall roundabout.

“On housing, the offer, as it stands, is way short of what is needed for the region and a much bolder approach to land supply has been ducked.

“Also missing is any commitment to regional energy planning and both UK and Scottish Governments have resisted calls to give councils powers to raise their own funds, through, for example, a visitor levy.

“It’s been said that this City Deal will be the final one of its kind. It certainly feels that way. The task now is to make sure that this weaker deal can be fully focused on building the cleaner, greener economy which is the city region’s only future.”