Glasgow City Region Economy

Debate between Martin Rhodes and Gordon McKee

Tuesday 2nd June 2026 Westminster Hall

[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—