£80 million investment boost for the north-east
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Innovation and fair work will be at the heart of Scotland’s first two Investment Zones, which aim to boost the economy, stimulate business growth and create high-quality, well-paid jobs.
Glasgow City Region and the North-east will each be supported by up to £80 million in targeted investment, tax reliefs and other incentives over five years following a joint selection process by the Scottish and UK governments.
Scottish ministers have tailored the UK Government’s Investment Zone model to ensure it aligns with the National Strategy for Economic Transformation and supports innovation in sectors such as net zero, digital and life sciences.
There will be a strong emphasis on fair work, mirroring the arrangements for Green Freeports.
The initiative is to be delivered by each area’s Regional Economic Partnership.
They will propose which sectors should be the focus of support, taking into account regional strengths and activity within Higher and Further Education institutions. Regional leaders, businesses and universities will take the lead in shaping and developing specific plans.
The Scottish and UK governments have an equal role in decision-making and overseeing delivery.
Wellbeing Economy Secretary Neil Gray said: “This is a milestone in the delivery of Investment Zones in a way that enhances Scotland’s economy while aligning with our distinctive priorities.
“Scotland already has a strong track record in innovation and research and the Investment Zones can build on these strengths. They will form part of a joined up approach that draws on the expertise of our world-leading research, education and training institutions, dynamic business sector and skilled workforce and will enable local communities to benefit.
“A rigorous process has been followed in selecting Glasgow City Region and the North East and we look forward to working in partnership with them to create high quality jobs and ensure that fair work practices, including payment of the real Living Wage, are embedded in the Investment Zones from the outset.
“We will, of course, continue to invest in all of Scotland’s regions, for instance through Growth and City Region deals, to build on their strengths and stimulate jobs and growth.”
Secretary of State for Levelling Up, Michael Gove said: “This is an historic milestone as we widen the opportunity and ambition of the Investment Zone programme to grow the economy across the whole of the United Kingdom.
“I am very appreciative of the constructive approach the First Minister and Deputy First Minister have shown in the meetings I have had with them in recent weeks. We all have a shared ambition to work together to see all parts of Scotland thrive and today’s agreement builds on our successful rollout of Green Freeports in Scotland earlier this year.
“Both Aberdeen and Glasgow, and their surrounding areas, have been at the very heart of the UK’s economic success for generations. Shipbuilding on the Clyde.
"Oil and gas exploration in the North Sea and a leader in the renewable sector. Both responsible for exporting some of the world’s finest food and drink around the globe. Both playing home to some of the biggest financial service companies we have.
We want to build on this proud present and past so that Aberdeen and Glasgow continue to make a massive contribution to the UK economy.”
Secretary of State for Scotland, Alister Jack, said: "This is exciting news for Glasgow and Aberdeen - the establishment of two Investment Zones in these areas will enhance their existing strengths, helping to attract investment, grow our economy and create jobs in priority sectors.
"This will build upon the great progress already being seen with the Freeports we announced earlier this year in Inverness and Cromarty Firth and the Firth of Forth."
