Glasgow City Region Economy

Debate between Kirsty McNeill and Gordon McKee

Tuesday 2nd June 2026 Westminster Hall

[The Parliamentary Under-Secretary of State for Scotland (Kirsty McNeill)]

It is a real pleasure to serve under your chairmanship, Ms Jardine. I warmly congratulate my hon. Friend the Member for Glasgow North (Martin Rhodes) on securing this vital debate, and on everything he does to represent one of the greatest parts of one of the world’s finest cities. Whether through the revival and modernisation of heavy industries such as shipbuilding on our beloved Clyde, or future-facing industries like satellites and life sciences, this region is truly stepping forward to lead globally.

The Glasgow city region’s importance to the Scottish and UK economies cannot be overstated—the region is quite simply a powerhouse. It encompasses some of Scotland’s most vibrant local authorities, thousands of distinct enterprises and more than 1 million workers. With more than £870 million invested into the region by the UK Government over 10 years, its future is looking even brighter, but to empower this region to reach its full potential we simply have to do things differently. To do that, we are actively moving away from the short-term, fragmented funded priorities that have held us back in the past. Instead, we are taking a targeted, long-term approach that puts power back where it belongs: in the hands of communities and regional leaders who know their streets and economies best.

I want to share exactly how we are working to supercharge the Glasgow city region, secure high-quality jobs and restore pride in local places. I will begin by highlighting the immense success of the £1 billion Glasgow city region deal, which has delivered foundational benefits through its first decade. That 20-year agreement stands as one of the largest such deals in the whole UK. With more than half a billion pounds of investment from the UK Government, it is set to deliver up to 29,000 jobs over its lifetime.

To date, the deal’s infrastructure programme has completely reshaped the local landscape, delivering iconic new connections across the Clyde. It has also breathed life into the city’s most important public spaces, including the Canal and North Gateway project, which has been transformational for communities in my hon. Friend’s constituency, creating better connections to the city centre and upgrading their public spaces. Further, that deal has leveraged over £800 million in additional private and commercial investment since its inception in 2014, showcasing how effective Government investment can unlock wider commitments to build towards a brighter and more ambitious future.

However, we will not stop there. We will be building on those foundations with the new £140 million Scottish local growth fund launched in January 2026. It is specifically designed to support areas that contain some of the lowest living standards to boost productivity and improve access to better-paid work. The Glasgow city region economic partnership is set to receive the single largest allocation in Scotland from the local growth fund: £60.9 million over the next three years.

The Glasgow city region is an excellent example of a region that knows exactly how to deliver true regional change, as exemplified through the success of the deal programme to date. At the same time, we understand that economic growth cannot be measured just on a balance sheet; as my hon. Friend said, it must be felt on the high street and on the doorstep. That is why we have introduced new hyper-local community funds that will empower local people to shape the future of their neighbourhoods.

Through the Pride in Place programme and the Pride in Place impact fund, we are directly supporting the most in-need communities. Through those programmes, the Glasgow city region is receiving a total of £146 million to support communities across the city region to thrive. Funding is going to places in Glasgow city, North Lanarkshire, South Lanarkshire, Inverclyde and West Dunbartonshire. Of course, one of those places is the Springburn and Sighthill neighbourhood, which includes my hon. Friend’s constituents in Cowlairs and Port Dundas, and I cannot wait to see what priorities the community chooses to support in that area. We all know that the most enduring purpose of Labour Governments is to redistribute power. That is why we are putting decisions about such funding back into the hands of local people who know the places they love the best.

Moving from the hyper-local to the national ambition, the UK Government are delivering a 10-year industrial strategy that is set to back Scotland’s strengths, unlock investment and deliver lasting economic growth. The Glasgow city region is key to this work, with many of the eight growth sectors in our strategy already forming the backbone of this regional economy—from advanced manufacturing and life sciences to defence and financial services.

To back up that transformational strategy with real funding, we are investing up to £500 million across the UK into new local innovation partnerships aimed at growing high-potential innovation clusters. Because of the Glasgow city region’s huge innovation potential, we have allocated £50 million to the region, building directly on the success of the Glasgow innovation accelerator pilot, which this Government backed with another £10 million to the region.

We will not stop there when it comes to equipping the region with the tools needed to be a truly modern economy. Its residents must have the skills and opportunities they need to chase the jobs of the future, as AI is put to work to transform communities and livelihoods. That is why Lanarkshire will host a new AI growth zone, backed by £8.2 billion of private investment and £5 million of direct UK Government investment, creating over 3,000 jobs and driving growth in line with the objectives of our industrial strategy.

Simultaneously, our investment zone programme is driving regional economic growth and regeneration, targeting the high potential of the Glasgow city region’s advanced manufacturing sector. Working in partnership with the Scottish Government and local leaders, we will provide up to £160 million of funding for this investment zone over the next decade, which is expected to generate around £300 million of initial private sector investment and support up to 10,000 jobs in the region.

We must also continue to support the industries that helped to make this region great. That is why this Government have provided bespoke support to Inverclyde in the form of £20 million for the Inchgreen dry dock redevelopment, which will drive new maritime and defence industry opportunities into Inverclyde, and support the people living there to gain the skills they need to do this important work.

Of course, we do not just want investment coming in, but Glasgow’s unique strengths to be exported out to the global market. That is why I am delighted to be joining Glasgow chambers of commerce on an upcoming trade mission to China as they return to the Shanghai international technology fair. We are determined to champion this region’s world-renowned strengths in technology, life sciences and advanced manufacturing to encourage export opportunities and create jobs.

Closer to home, the strategic partnership between the National Wealth Fund and the Glasgow city region represents a colossal opportunity for the region. In Scotland, the National Wealth Fund has directly invested nearly £2 billion, mobilising over £3.5 billion of private investment into projects that will create or support upwards of 9,000 jobs. The creation of partnerships, both internationally and at home, between the private and public sectors will unlock further private investment and drive growth. Together, that will leave the region best placed to navigate the challenges and financing barriers faced in delivering critical infrastructure improvements and developments. Such UK Government interventions are exactly the kind of long-term commitment that we believe is required to drive true growth.

Crucially, building a truly dynamic economy is also about ensuring that the power to spend and to direct investment is with those who know the unique needs and opportunities of their area the best. As my hon. Friend the Member for Glasgow North said, for too long we have watched the centralisation of decision making at Holyrood pull powers away from local communities and regional leaders across Scotland. That stands—I am sorry to say—in stark contrast to the UK Government’s ambitious regional devolution agenda south of the border, which seeks to expand the economic success story of Manchester to more parts of the country.

The 2025 report on regional economic growth by economist Professor Sir Anton Muscatelli asked whether we should consider a “realignment of powers” for Scotland. Similarly, the leader of Glasgow city council, Susan Aitken, has called for a

“rapid devolution of the powers”.

I hear the call from my hon. Friend the Member for Glasgow North, and from my hon. Friend the Member for Glasgow South (Gordon McKee), for devolution, not for the sake of it but because it will drive greater local autonomy that will in turn aid the reduction of inequality, the improvement of health outcomes and the creation of new jobs and opportunities across the region. This is the debate about the future of localism that Scotland needs now.

[Gordon McKee]

The Minister is making an excellent speech. In the conversations that she has had with the Scottish Government, have they ever articulated a reason and an argument for not devolving that power to Glasgow? That devolution is what my constituents want. We can see from cities such as Manchester and Liverpool that it would benefit our city.

[Kirsty McNeill]

My hon. Friend will know that that is felt right across the city region, and across other city regions in Scotland. The Scottish Government seem simply addicted to the centralisation of and hoarding of power. We have made an argument to the people of Scotland that has been incredibly well-received: they live in places that they know and love best, and they want the people they elect locally to have greater power. We are in ongoing dialogue with the Scottish Government but their driving political imperative is nation building, not place shaping. That stands in sharp contrast to the approach of this Labour Government, which is to put power in the hands of communities to change the places that they know and love so well. Scotland needs proper devolution inside Scotland, not just to it. My hon. Friend the Member for Glasgow South will find no greater champion of that local power agenda than me.

We should at all times be guided by the fundamental principle that powers over local services and projects are often best exercised as close as humanly possible to the people whose daily lives they affect. The Scottish people need all levels of their Government to work together to make their lives and communities better. Strong, effective councils and empowered regional voices are key to a prosperous Scotland. We are fully committed to working alongside our local partners in the months and years ahead to deliver that better future for the Glasgow city region and beyond.

Before I close, I want to reassure the hon. Member for Strangford (Jim Shannon) that I am in ongoing dialogue with Northern Ireland Office Ministers about how we can take lessons from the city deal programme and scale them UK-wide. My hon. Friend the Member for West Dunbartonshire (Douglas McAllister) made a very important point about the strategic sites right along the Clyde. I happily visited one such site in his constituency with him. We are fully appraised of the opportunities right along the river.

I thank the hon. Member for Glasgow North for securing this debate and thank all hon. Members who have spoken. The UK Government’s investment of over £870 million into the Glasgow city region over the next 10 years, combined with empowering local spending decisions, has already delivered a truly transformational impact that can be felt in every corner of the region, but this UK Government do not look backwards. Instead we continue to focus on progressing delivery and achieving the economic growth outcomes that will make sure that the Glasgow city region, Scotland, and the UK as a whole can thrive.

To deliver more we must seize all opportunities. That includes having a meaningful conversation on the future of regional devolution, because together we still have so much more to gain. Let us seize this moment, look to the future and continue to deliver for the Glasgow city region.

Question put and agreed to.