Glasgow City Region Economy

Jim Shannon Excerpts

Tuesday 2nd June 2026 Westminster Hall

[Martin Rhodes (Glasgow North) (Lab)]

I beg to move,

That this House has considered Government support for the Glasgow city region economy.

It is a pleasure to serve with you chairing, Ms Jardine. The Glasgow city region is at the heart of the Scottish economy and is a fundamental pillar of the larger UK economy. Home to 1.85 million people, across eight local authority areas, the Glasgow city region accounts for around a third of Scotland’s employment and economic output. Shipbuilding on the Clyde; world-leading university research and spin-offs; the largest production of miniature satellites in Europe; one of the largest financial sectors in the UK outside London; an established and growing advanced manufacturing base; and a dynamic and thriving cultural sector are integral parts of the city region’s economy.

This is a city region that includes UNESCO City of Music status for Glasgow, and playing host to COP26 in 2021 and the Commonwealth games in 2014, to be hosted again in Glasgow this summer. That all paints a picture of the Glasgow city region as a major economic and cultural success, but it is still held back by historical challenges. Its history of deindustrialisation has left deep-rooted issues of poverty and inequality that are still being grappled with today in many communities. The region has one of the highest percentages of people with no formal education, while also having one of the highest percentages of people with higher-level qualifications or more.

Parts of the region have some of the highest deprivation in the UK, along with some of the highest drug deaths in Europe, although the city region also contains some of the wealthiest areas of Scotland. That gets to the crux of the matter. Support for the Glasgow city region economy must be judged not only by headline growth figures but by whether the benefits reach all communities, particularly those who have waited longest for change.

[Jim Shannon (Strangford) (DUP)]

I commend the hon. Member for bringing this forward. I spoke to him beforehand about city region deals recognising the situation in Glasgow and my constituency, yet this work has only just begun. Does he agree that sustained funding has to be available to local councils to build on those foundational deals? The funding needs to be adequate to make a difference, not just in Glasgow but in Newtownards.

[Martin Rhodes]

I thank the hon. Member for that intervention. I agree and will go on in my speech to talk about how the work of the city deals needs to be developed further. Those structures and activities need to be built on to ensure we get the most from that initial interest to develop it further.

The Glasgow city region economy has seen real investment from the UK Labour Government but much more can be done. With greater devolved powers over areas such as infrastructure, skills, investment and public health, the region will be better placed to shape solutions around the needs of its communities. That would not be devolution for the sake of it. Greater local autonomy can help reduce inequality, improve health outcomes and create new jobs and opportunities across the region.

As the city region is right now, I welcome the significant investment that the UK Labour Government are already delivering. The new local growth fund, combined with the Pride in Place programmes, is set to deliver nearly £94 million in investment over the next three years. The combination of those funds delivers long-term infrastructure and renewal. That approach will help the Glasgow city region to invest in long-term renewal, an ambition that needs to be matched by sustained adequate local government funding from the Scottish Government.

This UK Labour Government have delivered the largest spending review settlement in the history of the Scottish Parliament, which amounted to £50 billion in last year’s settlement. That is in stark contrast to the Scottish Government, which instead of passing that funding increase to local government, continued to enforce cuts to communities. From 2013 to 2026, Glasgow city council alone has seen a £1.5 billion loss in Scottish Government funding. Those cuts to local government funding have left councils across the region overstretched and focused on struggling to deliver core services, with little left over for the long-term investment the city region needs.