Press release

Once in a generation investment in Glasgow and Clyde Valley

The government has agreed its commitment to the Glasgow and Clyde Valley City Deal, which will boost the local economy and create new jobs.

This was published under the 2010 to 2015 Conservative and Liberal Democrat coalition government
David Cameron, Danny Alexander and Gordon Matheson look out over the Glasgow skyline.

The Prime Minister, David Cameron, and the Chief Secretary to the Treasury, Danny Alexander, have today agreed the UK government’s contribution to a radical Glasgow and Clyde Valley City Deal, which has the potential to be the largest such deal ever agreed in the UK. This deal, which will seek to cement Glasgow’s status as a powerhouse of the UK economy, is expected to create over 28,000 new jobs by 2035, and generate around £1.75 billion of additional economic activity in the city per year.

The City Deal’s flagship proposal will seek to establish a £1.13 billion Glasgow Infrastructure Fund, which will be spent on improving the area’s transport network such as roads and rail. It will also be used to unlock the development of new employment sites, bringing further private sector investment to the city. In order to establish this infrastructure fund the UK government is offering £500 million of new funding, with local authorities in Glasgow providing a further £130 million. Building on this significant investment we are inviting the Scottish government to match the UK government contribution.

Read what the Prime Minister and the Chief Secretary to the Treasury had to say about the City Deal and what it means for Glasgow.

Some of the projects expected to be enabled by this fund include:

  • Clyde Waterfront and West End Innovation Quarter: Investment in site remediation and transport improvements to the M8 to unlock 800 hectares of new employment sites on the Clyde Waterfront and the West End innovation quarter. This investment will bring this site back into use for the first time since the closure of the docks in the 1970s.
  • Glasgow Canal and Northern Gateway: This scheme will provide a new bridge and transport improvements that will improve access to the Northern Gateway. This will enable significant new housing to be built as well as improved facilities such as a new Urban Sports Centre.
  • Transport to Glasgow Airport: Investment in transport routes from Glasgow City Centre and Glasgow airport, as set out in the Surface Access Strategy. This will include some form of rail link to the airport; the specific type of rail link is subject to further design and assessment.

The City Deal will also support the commitment of local leaders and the UK government to ensuring young people are able to access good jobs across Glasgow and the Clyde Valley. Building on existing local and national programmes this scheme will provide new employment support services for young people (16 to 24) prior to entry onto the Work Programme. Local leaders believe that over the next 3 years this programme will work with 15,000 young people, helping 5,000 into sustained work. The deal will also provide targeted unemployment support to over 4,000 Employment Support Allowance (ESA) claimants; supporting at least 600 claimants into sustained work.

Targeted support will also be given to small businesses and the life science sector, enabling their further growth and success. Further details of this part of the City Deal will be made public in the coming weeks.

The Prime Minister said:

I want Glasgow to have the freedom, power and tools to innovate and succeed for a brighter, more prosperous future. That’s why I applaud the ambitious aim to invest in infrastructure and attract private investment to help local business leaders establish Glasgow as a world leading city.

Danny Alexander, Chief Secretary to the Treasury, said:

Glasgow is one of the world’s great cities but like other places in the UK, like Manchester, Liverpool and Birmingham, it needs the tools to be able to succeed.

Today’s City Deal delivers those tools and provides a fantastic opportunity to help Glasgow take its rightful place on the world stage. Devolving power and responsibility to every part of the country is crucial to making our economic recovery strong and sustainable.

The UK government and Glasgow and Clyde Valley leaders have committed to fund activities and programmes worth £630 million. We believe that the Scottish government will join us over the coming weeks to help deliver an even better deal for the people of Glasgow and the Clyde Valley but whether they do so or not we will continue to stand behind Glasgow.

The Secretary of State for Scotland Alistair Carmichael said:

Today the phrase “people make Glasgow” is extremely apt. This City Deal lays the foundations for long term growth in Glasgow for this generation and for future generations, creating a stronger economy, a fairer society and ultimately giving Glaswegians the ability to create a legacy for this great city.

Moving forward local leaders in Glasgow and the Clyde Valley and the UK government will seek to work with the Scottish government to finalise the detail of this City Deal by August 2014. This will enable local leaders to begin delivering this deal on the ground, making a difference to lives of the people in Glasgow and the Clyde Valley.

Notes to editors

  1. Read the Glasgow and Clyde Valley City Deal.

  2. 24 City Deals have so far been announced with cities and urban areas across the country.

  3. The content of the City Deals reflects the different needs of cities. The cities have made proposals that are focused on the single biggest economic issue in their area. Some cities and their local areas are proposing City Deals focused on tools and powers to equip local people and businesses with the skills they need to take advantage of significant expansion in high value jobs in their areas; others on creating ecosystems to foster innovation and private sector growth; others to invest in infrastructure to unlock housing and jobs sites.

  4. City Deals are only one aspect of the government’s commitment to devolving power and empowering cities and their surrounding areas in England. And the devolution and localization agenda is also being clearly demonstrated in Scotland.

Published 4 July 2014