Tay Cities Deal

Steven Paterson Excerpts

Wednesday 13th July 2016 Commons Chamber

[Chris Law (Dundee West) (SNP)]

City deals have played a vital role in the economic revival of many urban areas throughout Scotland. Four city deal initiatives have so far been approved, and Dundee and the surrounding areas is the only major city region in Scotland yet to receive one. Draft plans have been submitted and the detail is under way. However, since the EU referendum, the Tay cities deal has been thrown into uncertainty, which is why I have called for this debate.

In August 2014, the Glasgow city region deal was the first Scottish city deal to be delivered, and it will be worth more than £1 billion over the next 20 years. Half of the funding for it was met by the Scottish Government. It has been followed by deals in both Aberdeen and Inverness, and 75% of the funding for the Aberdeen city deal was raised by the Scottish Government.

The 2016 Budget included an announcement that the UK Government would open negotiations with the Scottish Government for a further city deal for Edinburgh and south-east Scotland. Dundee and Perth are, therefore, the last major city regions awaiting approval.

Cities have been invited to see themselves as catalysts for regional development, and to construct proposals that are based not merely within their city boundary, but across their functional economic area, thereby providing a crucial boost to rural economies.

That brings me to my constituency. Dundee has, of course, taken the lead in co-ordinating an outline proposal for a city regional deal based on two cities—Dundee and the fair city of Perth—and the strategic towns of St Andrews in North East Fife and of Arbroath, Montrose and Forfar in Angus are diverse areas all linked by the River Tay. This is probably the largest population area in the UK mainland that is still awaiting a city deal. Our city region encompasses a population of almost 500,000 and represents 10% of Scotland’s population.

[Steven Paterson (Stirling) (SNP)]

My hon. Friend mentioned a number of major cities in Scotland, but he neglected to mention Stirling, which also wants a city deal and faces similar uncertainty as a result of recent events. I hope that he will support Stirling, as well as the fair city of Dundee.

[Chris Law]

Absolutely. I apologise for not mentioning the wonderful city of Stirling. I wholeheartedly agree with my hon. Friend. I would love confirmation that Stirling will also be seriously considered for a future city deal.

The powerful collaboration is made up of four local authorities—the kingdom of Fife, the ancient seat of Angus, the fair city of Perth and Kinross, and Scotland’s sunniest city, Dundee—along with public agencies such as Scottish Enterprise, VisitScotland, Skills Development Scotland, the chambers of commerce, a wide cross-section of private sector businesses and the four universities in the Tay cities area.

The Tay cities economy is diverse, ranging from agriculture, forestry and public administration to high-tech engineering, life sciences research and development, tourism and, last but not least, the creative industries, in which video game production plays a huge part. It is also the headquarters or the major base of several of the leading 100 companies in the FTSE 100, including Scottish Southern Energy, GlaxoSmithKline, Diageo, Aviva and Stagecoach. The region is intersected by main road and rail transport corridors linking northern Scotland with the central belt and the rest of the UK. The Tay cities area, therefore, accounts for almost 7% of Scotland’s total economic output, and has enormous potential for growth.

The Tay cities partnership bid represents a balance between infrastructure, investment and a number of transformational and collaborative initiatives focused on the devolvement of powers and budgets to create new employment opportunities. Connectivity is a central theme in the Tay cities proposal. The Tay cities region is at the heart of Scotland, and is strategically located between the central belt and Aberdeen and Inverness. However, there is an issue of relative remoteness that needs to be addressed by significant investment in key road, rail and air connections with the rest of Scotland, the UK, Europe and beyond.