City Region and Growth Deals

The Supplier Development Programme is actively involved in City Region Deals and Growth Deals.

We approach City Region Deals and Growth Deals at an early stage to ensure that support for SMEs that stand to benefit from the economic boost is considered and enacted. The Scottish Government and local authorities involved in these Deals are SDP membership organisations, which means that if you are a SME or supported business, you have easy access to a named contact who can point you in the right direction for additional information. The Supplier Development Programme actively promotes tender training related to Deals, as well as supplier engagement days, and we also promote upcoming opportunities on a regular basis.

Read more about City Region Deals and Growth Deals on this page, and contact info@sdpscotland.co.uk if you require additional information.

 

City Region Deals

City Region Deals are agreements between the UK Government, Scottish Government, local authorities and other partners to invest in cities and regions.

They are designed to bring about long-term strategic approaches to improving regional economies. They are implemented by regional partners and overseen by the Scottish City Region Deal Delivery Board.

Each deal is tailored to its city region, reflecting its individual economic strengths and weaknesses, and comprises a programme of interventions to support positive, transformative change.

Glasgow City Region Deal

Glasgow City Region City Deal logo

The Scottish Government is contributing £500 million to the £1.13 billion Glasgow City Region City Deal Infrastructure Investment Fund over 20 years.

The regional partners estimate that the overall investment of £1.13 billion will deliver around 29,000 jobs in the region and attract around £3.3 billion of private sector investment.

Considerable progress has been made since the Glasgow deal was signed in 2014. Seven projects and 16 sub-projects have been completed, including the Imaging Centre of Excellence at the Queen Elizabeth University Hospital, a dedicated medical technology incubation facility in North Lanarkshire, and an integrated employment programme for young people. Others are under construction, such as the regeneration of Sighthill and the Avenues project, which aims to improve public realm around the city.

The latest figures show that over £239 million has been spent on City Deal infrastructure to date, with local business benefiting from City Deal contracts to the value of £107 million.

This partnership of eight neighbouring local authorities has secured investment of £1.13 billion, the largest City Deal in the UK, which will focus improvement in the Glasgow City region through 27 projects. Of these, 20 are major infrastructure projects. This programme of work will greatly add to the value of the local economy over the next 20 years.

In 2020, the eight local authorities signed off on a Regional Economic Recovery Plan. The plan includes a range of measures to support jobs, skills and businesses though the COVID-19 pandemic.

This is the first City Deal to be agreed for Scotland. You can also read an overview of the Glasgow City Regional Deal.

Glasgow City Region Deal and SDP

The Supplier Development Programme has been a partner in the Glasgow City Region Deal since its inception. We aim to support SMEs to become “tender ready” to bid for the 27 projects in eight local authorities, which are also SDP membership organisations.

The eight local authorities are:

  • East Dunbartonshire Council
  • East Renfrewshire Council
  • Glasgow City Council
  • Inverclyde Council
  • North Lanarkshire Council
  • Renfrewshire Council
  • South Lanarkshire Council
  • West Dunbartonshire Council

You can read more about past Supplier Events that SDP has organised as part of the Glasgow City Region Deal in the case studies section.

What does City Deal mean for my business?

Contracts for the main 27 projects have been published since 2015 on the Public Contracts Scotland website. Once awarded, the successful contractors begin to search for subcontractors.

Subcontracting work covers all manners of goods and services from construction materials, transport and haulage to catering and cleaning. Businesses further down the supply chain can then bid to provide labour, goods and other services to the subcontractors.

Success of the City Deal is dependent on proving Gross Value Added (GVA). GVA is a measure in economics of the value of goods and services produced in an area, industry or sector of an economy. You can find out more about GVA and City Deal procurement in the Glasgow City Region City Deal Procurement Strategy.

Where can I find contracts?

There are several ways of finding City Deal subcontracting opportunities.

  • Larger contracts will be posted on the Public Contracts Scotland website;
  • Once a major contract has been awarded, you can approach the contractor directly and ask about their requirements;
  • You can attend one of the various information events which will be taking place in the region and speak to contractors; and
  • The Supplier Development Programme will post all news and development online and on social media.

Please note: although the work will take place in the Glasgow and Clyde region, any business from Scotland, the UK and Europe can bid for work.

How can I get ready for City Deal?

  • Register with the Supplier Development Programme and see what training is available.
  • Register on Public Contracts Scotland website www.publiccontractsscotland.gov.uk and sign up for contract alerts.
  • Check all your insurance and policies are up to date including Health & Safety, Equality & Diversity, Quality Management and Environmental.
  • Follow SDP on Twitter (@sdpscotland) to be kept up to date with the latest news and developments.

You can visit the City Deal website and find up-to-date procurement news and contract opportunities.

Aberdeen City Region Deal

The Scottish Government committed to invest up to £125 million to the Aberdeen City Region Deal, supplemented by up to £44 million committed by Aberdeen City Council, Aberdeenshire Council, and other local partners.

The 10-year deal aims to encourage investment in innovation, internationalisation, digital connectivity, and infrastructure across the region.

Projects successfully delivered to date include the Oil and Gas Technology Centre, which has celebrated its third year of operation, by exceeding expectations with over 1,000 technologies screened, bringing to life 237 projects. The Bio-Therapeutic Hub for Innovation has moved into its main construction phase. The Hub is based on the Foresterhill Health Campus in Aberdeen and will help to bring forward the next generation of medical therapies and products. The Aberdeen South Harbour is 70% through the building process, with a 2021 completion date.

Alongside the Deal, the Scottish Government is committed to invest a further £254 million in the North East over the same timeframe. This will deliver improved transport and broadband networks, and local housing programmes.

In the summer of 2020, the Regional Economic Strategy Vision Statement was refreshed in response to COVID-19 in order to support and contribute to the delivery of the Scottish Government Economic Recovery Plan.

The Scottish Government recently announced the £62 million Energy Transition Fund to support businesses in the oil, gas and energy sectors over the next 5 years. Projects that will be considered under this for the North East are the Energy Transition Zone and the Global Underwater Hub.

Inverness and Highland City Region Deal

The Scottish Government has committed up to £135 million to the Inverness and Highland City Region Deal. The UK Government has committed up to £53 million, supplemented by up to £127 million from the Highland Council and regional partners over a 10-year period.

Regional partners estimate that this £315 million package could attract an additional £800 million of investment by the private sector.

The deal will support improvements to the region's digital connectivity, digital healthcare, skills, innovation and infrastructure, with the aim of stimulating long-term productivity and economic growth.

Progress has already been made with a number of projects. For example, the first 15 Fit Homes developed in Dalmore, Alness were completed in April 2018 and are now occupied. These technology-enabled homes provide independent living for elderly residents and military veterans who might otherwise have to remain in hospital or enter care. The first 16 affordable homes aimed at young people were also completed at Raining’s Stairs, Inverness in October 2018. Further sites are being built at Glendoe Terrace, Inverness and in Drumnadrochit, Fort William, Ullapool and Munlochy. A site in Nairn has been grated planning permission for ten specially designed assisted homes for people with various medial needs.

The Inverness castle project is still in the early stages of development. It will be a gateway for Highland tourism and is a vital part of the regeneration of Inverness city centre.

Stirling and Clackmannanshire City Region Deal

Both the Scottish Government and the UK Government have committed up to £45.1 million each towards the Stirling and Clackmannanshire City Region Deal. Regional partners will match this investment with up to £123.8 million, resulting in a deal worth over £214 million.

Regional partners estimate that over the next 10 to 15 years these interventions will unlock private investment worth in excess of £640 million, delivering over 5,000 new jobs across a wide range of sectors in the City Region.

The Deal was signed by the committee at the beginning of 2020, at a special event at Forth Valley College. The deal focuses on delivering national and international sustainability through cutting edge environmental projects, innovation in the digital and tourism sectors and boosting skills across the region to create a pathway for future success and resilience.

There has also been a further £5 million investment into the region, which will support the delivery of enabling infrastructure for Phase One of a new Business Park at Kildean and support the next stage of development of proposed new enabling infrastructure at Callander. This has the potential to deliver 1,500 new jobs and £275m of private sector leverage.

The first projects to be delivered from the Deal will be Scotland's International Environment Centre and the National Tartan Centre.

  • Read the news release on £90.2 million City Region Deal for Stirling and Clackmannanshire
  • Read the news release on the £5 million additional funding for Stirling and Clackmannanshire
  • Read the full Deal document for Stirling and Clackmannanshire

Edinburgh and South East Scotland City Region Deal

The Scottish Government and the UK Government have each committed £300 million to the Edinburgh and South East Scotland City Region Deal over 15 years.

Regional partners - including local authorities, universities and colleges, and the private and third sectors – have also committed to invest, resulting in an overall deal package worth more than £1.3 billion.

This will deliver inclusive economic growth across the region through housing, innovation, transport, skills and culture. The investment will contribute towards 41,000 new homes, 21,000 jobs, and improving the skills of an estimated 14,700 people.

Progress has been made with a number of projects. For example, construction has started on nine new business units at Queensway Industrial Estate. This is the first wave of the Fife 13 programme. The Housing and Construction Infrastructure Skill Gateway has launched, which will provide multi-level support to schools, new entrants to the sector and up-skill the workforce over the next six years. Construction has also commenced at the Borders Innovation Park.

In response to COVID-19, the DDI Programme awarded £250,000 to 19 projects that will use data-based approaches to support local businesses.

Tay Cities Region Deal

The Scottish Government and the UK Government have each committed up to £150 million over 10 to 15 years towards the Tay Cities Region Deal. Together with regional partners’ contribution, this deal has the potential to secure more than 6,000 jobs and attract £400 million of investment.

The overall Deal seeks to transform the region by focusing on inclusion, innovation, internationalisation, connectivity and empowerment.

The partnership will be future focused, with a clear understanding of the action needed to deliver sustainable economic growth. It is about partnership and effective collaboration, as well as new resources. The deal will be delivered in the context of the refreshed Tay Cities Region Economic Strategy 2019-2039.

 

Regional Growth Deals

Regional Growth Deals are agreements between the Scottish Government, the UK Government and local government designed to bring about long-term strategic approaches to improving regional economies.

Growth deals are delivered by regional partnerships between partners including local authorities, the private sector, education and skills providers, and our economic agencies.

The aim of these collaborations is to drive inclusive economic growth. Building on the City Region Deals, the Scottish Government is committed to ensuring 100% coverage of Scotland with growth deals.

Ayrshire Growth Deal

The Scottish Government signed the Ayrshire Growth Deal in March 2019 with a commitment of £103 million investment over the next 10 years to deliver inclusive growth across Ayrshire. The UK Government will also be investing £103 million into the region over the next 15 years and regional partners will contribute £45.5 million to a total Deal worth £251.5 million.

The deal is a key element of Ayrshire's recovery, and reaffirms the public sectors commitment to the region and the collective desire to support ambitious plans for renewal and long term sustainable growth. Regional partners estimate the deal will create 7,000 new jobs and unlock an additional £300 million from the private sector.

The Scottish Government’s investment includes £40 million for innovative projects around engineering, manufacturing and digital automation, £30 million for an Aerospace and Space Programme, £18.5 million for tourism and regeneration and £14.5 million for regional projects around skills, community wealth building and digital infrastructure.

Ayrshire have launched a dedicated growth deal website to provide more detail and give regular updats and progress reports.

Borderlands Inclusive Growth Deal

The Borderlands Partnership involves five local authorities: Dumfries and Galloway, Scottish Borders, Carlisle City, Cumbria and Northumberland working together to promote inclusive economic growth in the South of Scotland and North of England.

The Borderlands partners have identified priority themes that they consider will transform the region as a whole. The priority themes are: digital, energy, place, destination, mountain biking, business infrastructure, knowledge exchange, land and marine, transport.

We have committed up to £85 million, over a 10 year period, to support the Borderlands Inclusive Growth Deal. The UK Government will invest up to £65 million in the Scottish elements of the deal, and up to £195 million in the English components. This brings the total value of potential deal investment, in the wider region, to £345 million.

The Scottish Government signed the deal heads of terms agreement with the UK Government and Borderlands partners in July 2019. This agreement sets out the specific projects and activities to be funded.

The Deal is currently undergoing the final stages of work before it is formally signed. Early delivery has started on some the of projects. For example, top funding for a Digital Voucher scheme supporting businesses and private customers to install high speed broadband, £5 million towards the build of Lilidorei, a large scale new play village at the Alnwick Gardens and the start of the work to redevelop Carlisle Station.

Moray Growth Deal

In July 2019, the Scottish and UK Governments each committed to an investment of £32.5 million in the Moray Growth Deal, a long-term plan designed to boost inclusive economic growth across Moray.

Moray Council and partners signed the heads of terms in the summer of 2020. The agreement outlines that the deal will be built on four themes; Connection, Business Support, Skills and Employability.

The growth deal will support 8 projects, including, The Moray Aerospace, Advanced Technology and Innovation Campus (MAATC) which will explore options collaboratively with the RAF and Boeing to create a skilled workforce for the Moray Region. The business support Hub; which will focus on education, research and co-location of business support functions in Moray to support new business start-ups, and the up-scaling of existing micro businesses. Digital Health; which will support the increasing demands and service capacity challenges on public health services.

Argyll and Bute Rural Growth Deal

The Scottish and UK Government is looking to invest £50 million into the rural growth deal, another £20 million will be contributed by Argyll and Bute Council along with key stakeholder partners. The deal is about turning economic potential into a successful future for Argyll and Bute. The council will invest in projects that will turn the area's natural resources and business innovation into a thriving local economy. The rural growth deal is to be delivered over a 10-15 year period.

In February 2021 Argyll and Bute Council signed its Heads of Terms agreement. It outlines the general areas for investment, including: aquaculture, innovation, tourism, housing, digital connectivity and skills for a rural economy.

The council and its rural growth partners will take the next 1-2 years to develop business cases that will set out the detail of projects for delivery. Once these have been approved the Governments and Rural Growth funding will become available for use.

Islands Growth Deal

The Islands Growth Deal will unlock investment and drive inclusive growth across Orkney, Shetland and the Western Isles

In summer 2020, the UK and Scottish Government committed to investing £50 million each to support all three Scottish island authorities, in an effort to stimulate economic growth and stem depopulation.

The Islands projects have been split into three categories; Leading the way to a low carbon future, Supporting Growth and Future Industries, and Thriving Sustainable Communities.

The Islands want to be at the forefront on the Government's Net Zero carbon emissions goal, so have embedded this within their deal. They plan to demonstrate how to achieve Government Net Zero carbon targets and be the first parts of the country to do this. Some projects to support this include: The Shetland Clean Energy Project, Scapa Flow Fuels Hub, and The Outer Hebrides Energy Hub.

The Islands also aims to create a collaborative environment that supports creativity, innovation and growth, utilising the islands' unique assets to create new, high growth sustainable industries. Project for this include: The Creative Islands Wellbeing project, The Orkney World Heritage Gateway, the Outer Hebrides Food and Drink Programme and many more.

Furthermore, the deal will focus on improving the communities quality of life, offering attractive and affordable places for young people and families to live and invest in their future. Projects include: The TalEntEd Islands Programme, The Orkney Research and Innovation Campus, The Shetland Campus Redevelopment and the Outer Hebrides Campus Redevelopment.

The deal is expected to run over a 10 year period.

Read the heads of terms document for the Islands Growth Deal

Falkirk Growth Deal

The UK Government has pledged £40 million to the Falkirk Growth deal. The funding will be directed towards potential projects to boost the local economy and create skilled jobs and enable investments in infrastructure improvements to support sustainable travel, tourism and energy. The Falkirk Growth Deal will seek to develop Falkirk’s ambitions for inclusive economic growth, including the opportunities unlocked from Grangemouth’s national significance as Scotland’s largest industrial site.

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