Scottish City Deals

Kirstene Hair Excerpts

Tuesday 27th February 2018 Westminster Hall

[The Parliamentary Under-Secretary of State for Housing, Communities and Local Government (Jake Berry)]

It is a pleasure to serve under your leadership, Ms McDonagh. I congratulate the hon. Member for Glasgow North East (Mr Sweeney) on securing this hugely important debate. The Government welcome the opportunity to talk about the huge success that Scotland’s city deals are already delivering for all seven of the major cities in Scotland, and will deliver in future.

I am slightly disappointed that the hon. Gentleman is so upset that I am responding to the debate. I am the Minister for the northern powerhouse—for most people in the Chamber, I guess that is the far-southern powerhouse—but I am also Minister for local growth, and it is my cities and local growth team, on behalf of the Government, in partnership with the Secretary of State for Scotland and his civil servants, who have negotiated many of these city deals. I hope today to bring to the debate not just the experience we have had in government of negotiating city deals in Scotland but other experience.

The hon. Gentleman referred to the huge success of the English city devolution programme. We have seen huge steps forward in places such as the West Midlands, which now has a Mayor for its combined authority, as well as Liverpool and Manchester—and, in particular, the Tees Valley. There are important lessons we can learn across our United Kingdom, both from this debate and, more generally, about how devolution—taking real power, money and influence away from Westminster and returning it to the hands of people in local communities to drive forward their own growth—can transform our economy.

Before I get to the main part of the debate, I want to put on record my congratulations to Scotland’s rugby team, who absolutely battered England at Murrayfield on Saturday. I was there, and it was a great privilege. It was not a great result from my point of view, but it was good to be at the match. It shows that sometimes the best team wins, and the team with the best spirit also wins. I therefore congratulate Scotland on winning back the Calcutta cup—after 10 years.

I would like to celebrate the achievements and successes we have seen in our city deals. An additional £1 billion of UK Government investment and funding is going into local growth priorities in Scotland, which has been matched by £1 billion put forward by the Scottish Government, with additional investment from local authorities, universities and—let us not forget it, because it has not yet been mentioned in the debate—the private sector, which together brought forward a further £835 million. That shows that when city deals, and devolution and growth deals, are at their most successful, they are a partnership of equals between the UK Government, the Scottish Government, Scottish local authorities, the private sector and, of course, our colleagues in the public sector.

As we set out in our industrial strategy White Paper last November, the Government are committed to driving forward growth across the whole of the United Kingdom. It is about helping areas to achieve their full potential by building on local sector strengths that attract investment and supporting local businesses to grow. The city and growth deals that we have already negotiated and those that we have committed to negotiate in Scotland, Wales and Northern Ireland are absolutely central to that ambition. Moreover, they show how the Government can work hand in hand with partners in the devolved Administrations across our United Kingdom and local authorities to deliver, in a co-ordinated way, real impacts for local economies.

The first Scottish city deal was agreed in 2014, three years after the then coalition Government launched the first groundbreaking English city deal. It was interesting to hear it referred to as a pre-referendum bribe. If SNP Members believe that—I do not believe it; the deal was about driving forward the city of Glasgow’s economy for the people who live there—I wonder why they signed up to it. Perhaps they can deal with that later.

The deals provide place-based solutions, building on local expertise to co-ordinate investment and policy, and interventions to help to drive economic growth. Recognising that city deals, as piloted in England, could boost local economies across our United Kingdom, Her Majesty’s Government and the Scottish Government agreed that the programme should be extended beyond England, to demonstrate our commitment to supporting dynamic businesses and local communities represented by devolved Administrations. We have agreed four deals across Scotland and are negotiating three more, meaning that we now have deals being either implemented or negotiated for each of Scotland’s great seven cities. We are also working on a cross-border deal between Scotland and England, referred to as the borderlands deal, which was confirmed in the most recent Budget, to see how we can drive forward the ambitions and desires of businesses in the borderlands area of our United Kingdom.

[Kirstene Hair (Angus) (Con)]

There has been a lot of talk specifically about city deals. On the Tay cities deal, which comes into my constituency, I just wanted to confirm that we will use as much pressure as possible to ensure that the deals cascade out into rural economies as well, because they need just as much support.

[Jake Berry]

I thank my hon. Friend for that intervention. We should never forget that the majority of people in this country do not live in a city, but in towns, villages and rural communities. Therefore, every city deal and every growth deal that the Government negotiate, regardless of where it may be in our United Kingdom, has to be about driving forward the economies of areas outside cities as well as in cities. I happily confirm that the hopes and desires of her constituents who do not live in a city will be part of that deal.