MPs launch new inquiry into multibillion pound regional investment deals for Scotland

• Submit evidence
• Inquiry: City Region and Growth Deals
• Scottish Affairs Committee

City Region and Regional Growth Deals are two types of funding packages that cover every part of Scotland. They are agreed between and co-funded by the UK and Scottish Governments, with additional spending commitments from local partners such as councils and businesses.

Audit Scotland reported last year that the Covid-19 pandemic, war in Ukraine and high UK inflation put financial pressure on Scottish councils. Without additional funding, the report warns of the real risk that deals will not stretch as far as expected and that partner funding may not materialise as a result.

In a new inquiry, the Committee aims to take stock of the City Region and Regional Growth Deals across Scotland, examining what they have delivered so far and barriers to their success.

Commenting on the new inquiry, Committee Chair Pete Wishart MP said:

“City Region and Regional Growth Deals have the potential to provide fantastic economic opportunities for local economies across Scotland. But given the challenging economic circumstances, are these plans achieving what Holyrood and Westminster intended?

“It is hugely important that deals agreed by the UK and Scottish Governments, with earmarked funding for Scottish regions, are delivered as effectively and efficiently as possible. As a Committee, we will examine their progress so far and identify whether they are delivering what they intended – ensuring that City Region and Regional Growth Deals deliver for the people of Scotland.”

What are City Region and Growth deals?

City Region and Regional Growth Deals are designed to encourage economic growth and create jobs. Under these Deals, the UK and Scottish Governments collaborate with local partners on long-term infrastructure schemes such as new rail links. While City Region Deals are packages for cities, Growth Deals focus on Scotland’s rural and sub-urban areas.

Each deal is tailored to local circumstances and priorities. Improved broadband and mobile coverage is one priority of the Inverness and Highland deal, while Tay Cities, the newest deal, includes a commitment of £25 million to biomedical sector investment.

Glasgow signed Scotland’s first deal in 2014, resulting in a funding commitment worth £1.3bn over 20 years. Local authorities came together to manage an improvement programme targeted at the transport network, reducing unemployment and supporting the life sciences industry.

Terms of reference

The Committee invites written submissions focusing on any of the below questions by midnight on 21 April 2024.

• What contribution have City Region Deals and Regional Growth Deals made to the development of Scottish Cities and regional economies?
• What are the key opportunities and challenges for City Region Deals and Regional Growth Deals in the coming years?
• How have City Region Deals and Regional Growth Deals progressed since the Committee last examined them in 2021?
• What steps have different City Region Deals and Regional Growth Deals taken to implement the recommendations of the 2020 Audit Scotland report?
• How do the provision and effectiveness of City Region Deals and Regional Growth Deals compare with similar schemes in England and Wales (such as Investment Zones)?
• How do City Region Deals and Regional Growth Deals align with other ‘Levelling-Up’ funding available to Scotland?
• To what degree do City Region Deals and Regional Growth Deals address the right priorities for Scotland? Is there sufficient flexibility in the schemes to tailor the offer to regional needs?
• What policies should the UK Government adopt to foster the success of City Region Deals and Regional Growth Deals in the coming years?

Further information

• About Parliament: Select committees
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