Glasgow City Region Economy

Debate between Martin Rhodes and Douglas McAllister

Tuesday 2nd June 2026 Westminster Hall

[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.