Glasgow City Region Economy

Martin Rhodes 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.

[Gordon McKee (Glasgow South) (Lab)]

My hon. Friend is making an excellent speech and an important contribution. We have seen in other UK cities the difference that city region mayors can make, whether in Manchester or in Liverpool and whether on bus franchising or attracting investment. Does he agree that one of the things Glasgow needs is greater devolution from Holyrood to our city to help to attract investment?

[Martin Rhodes]

Yes, I agree that we need devolution of power from Holyrood. One of the ironies of the devolution period in Scotland is that although powers have been devolved from the UK to Scotland, power has been hoarded in the Scottish Parliament and Scottish Government and not devolved to local government and local communities.

The UK Labour Government’s investment is not a substitute for sound local government funding. It is targeted, strategic funding designed to deliver the transformational projects that drive growth, create better jobs and build more prosperous communities. That investment reflects real ambition for the city region and is a fundamentally different offer to the Scottish Government’s short-sighted approach.

While the Scottish Government neglect the Glasgow city region, this Labour Government have been representing its interests in our trade abroad. The £10 billion defence deal with Norway has secured thousands of jobs at shipyards on the Clyde while also supporting many small and medium-sized UK and Scottish businesses in the supply chain. This Labour Government are supporting skilled jobs and opportunities in our city region communities that need them.

The UK Government are not supporting only traditional industries such as shipbuilding; they are also supporting the region’s future technology industries. I recently visited the University of Glasgow-based Responsible Electronics and Circular Technologies programme, which was established in my constituency in 2024 with more than £6 million of UK Government funding. REACT brings together industry and academia to design sustainable solutions for the electronics sector. Projects like that create high skilled jobs, strengthen supply chains and ensure that Glasgow city region remains at the forefront of future industrial development.

With that dynamic and growing economy in the region, it is clear why devolving power and funding to the city region would help industry, businesses and communities. It would allow policies to be better shaped to serve communities where these investments are happening. Already, the Glasgow city region cabinet, a unique governance structure established to oversee the Glasgow city deal that brings together the leaders of the local authorities, helps to deliver these types of regional programmes. However, that governance structure was created for a particular purpose: to oversee a significant but limited city deal programme. It needs to be transformed to meet the new reality and the ambition of the region shown by recent UK Government investment.

Since being elected, I have met with businesses, public transport providers and campaigners, and representatives from the city region to discuss this issue. All of them acknowledge that the Glasgow city region as a metropolitan area needs a regional structure to deliver aligned region-wide policies. That would allow the Glasgow city region to tailor its policies to the needs of our communities. However, devolution must be about outcomes, not simply structures. Any transfer of power must come with clear accountability, strong governance and a focus on what matters to our communities: reducing poverty, improving health outcomes and creating good jobs.

As the city region develops, there will also need to be stronger democratic accountability around the decisions being made. What matters most, however, is that power is placed closer to the communities affected by those decisions. That means better systems to identify the barriers keeping communities in poverty and regional solutions to break down those barriers. That stands in contrast to years in which powers have sat concentrated in Holyrood, with little meaningful transfer to the city region. The Glasgow city region is reaching an important moment in its development. There is now a growing recognition that city regions such as ours are best placed to shape solutions to the challenges and opportunities facing our communities.

Importantly, that work is being matched by growing investment and institutional confidence. The city region now oversees a portfolio of more than £2 billion and is working with partners, including the National Wealth Fund, to shape the next stage of the region’s development. If we get this right, the Glasgow city region can play an even greater role in the Scottish and UK economies while delivering practical improvements in people’s lives: better transport, stronger local economies, good jobs and healthier communities. In the meantime, there is so much to be proud of. World-leading universities, high-skilled jobs and art, culture and sport make it one of the UK’s greatest city regions. It deserves the support it needs to tackle the challenges it faces and deliver real change for the communities of the Glasgow city region.

As for the future, regional devolution for the metropolitan areas of Manchester, Liverpool and the west midlands is proof that greater city region devolution can work. The foundations for governance are already in place in the Glasgow city region, and the UK Labour Government have shown, through significant investment and their partnership with the city region body, that they understand that empowering the Glasgow city region will help it succeed further, economically and culturally. The hugely beneficial impact of UK-funded initiatives such as the local growth fund, the Pride in Place programme, the Norway defence deal and the city deal—

[Douglas McAllister (West Dunbartonshire) (Lab)]

One in eight local authorities in the Glasgow city region is in my constituency. The Clyde is more than just Glasgow; it is the towns and areas up and down both sides of the Clyde. Does my hon. Friend agree that UK Government funding, not least the £60 million local growth fund, has the potential to unlock two sites in my West Dunbartonshire constituency: the former Exxon site and the Carless site? Both have the potential to create thousands of well paid, highly skilled jobs in West Dunbartonshire.

[Martin Rhodes]

I thank my hon. Friend for his customarily well versed arguments for his constituency and the skills, developments and opportunities there. It is true that when we talk about the city region we are talking about not just the city itself but all parts of the city and the surrounding region. The impact of every £1 of investment could go further. When funding is channelled through empowered regional structures, with engagement, accountability and governance systems providing tailored local policies, it has a multiplier effect on everything it delivers. That means delivering for not just the wealthiest parts of the city but those communities that are most in need of support in all parts of the city region, within the city boundary and beyond.

My constituents in Glasgow North, along with people in the rest of the region, deserve high-quality affordable homes, an integrated transport network and good jobs, which an empowered city region can help deliver. I welcome the Minister’s reflections on what steps the UK Government plan to take to support the Glasgow city region’s economic ambitions. I also welcome any further reflections on what the UK Government can do to help accelerate the transfer of powers to the city region.

The Glasgow city region is a major economic and cultural success, but it is still held back by historical challenges. With the right powers behind it, with sustained local authority funding and with the UK’s Government’s investment, it could go much further in delivering improved health, good housing and rewarding, well paid jobs for our communities. The test will be how it delivers for all our communities, and for all in our communities, so that they can not only survive or live but truly flourish.