QUARTER TWO 2016 GLASGOW GITY REGIONCityDeal PARTNER AND ELECTED MEMBER NEWSLETTER Welcome COUNCILLOR FRANK MCAVEETY LEADER OF GLASGOW CITY COUNCIL AND CHAIR OF THE GLASGOW CITY REGION CITY DEAL CABINET Dear Colleagues I would like to welcome you on behalf of the Cabinet to the first issue of a quarterly newsletter designed to keep you up-to-date with progress in the Glasgow City Region City Deal. Our City Deal is the second largest in the UK and represents the biggest ever investment for Glasgow and the Clyde Valley. It will be transformational, changing not only the physical and social landscape but also how we as partners work together across the region. A key aim is for the City Region to be seen as one of Europe’s leading destinations of choice for residents, businesses, visitors and investors. Success in achieving our shared ambitions for economic growth, inward investment, jobs, new housing and improved transport and connectivity will be supported by ongoing collaborative working across not only the member authorities, but with local, regional and national bodies and partners. By necessity, this issue provides quite a lot of detail on the background and aims of the City Deal. Going forward, updates will be more succinct, providing progress updates on the overall Programme and projects, local impacts and benefits as well as on other initiatives where partners are working together such as the regional economic strategy. I hope you find this briefing useful and welcome any comments you may have. Phone 0141 287 4743 Email [email protected] EIGHT PARTICIPATING LOCAL AUTHORITIES GLASGOW CITY REGION CITY DEAL BACKGROUND THE CITY DEAL will bring thousands Initiated in 2011, the City Deal process Glasgow and the Clyde Valley. of new jobs to Glasgow and the City is part of the UK Government’s broader The partnership of neighbouring Region, support thousands of devolution agenda to empower local member authorities has secured, the unemployed people back into work, areas to drive economic growth by second largest City Deal in the UK, greatly improve our local transport putting greater resources and financial which will focus improvement in the network and connectivity, deliver freedom in the hands of local leaders. Glasgow and the Clyde Valley through 26 projects. key regeneration and development Formally approved in August 2014, projects, encourage private sector the Glasgow City Region City Deal is investment into the area and an agreement between the UK ultimately provide an enormous boost Government, the Scottish Government to the City Region’s economy. and eight Local Authorities across THE CITY REGION - ACHIEVING A SHARED, LONG-TERM VISION GLASGOW AND THE CLYDE VALLEY barriers to future economic growth. • Supporting further growth in the is the largest City Region in Scotland High rates of long-term unemployment, life science sector through the and one of the largest in the United poor survival rates for business establishment of world class Kingdom. As such it is a key engine of start-ups in comparison to similar UK research and development and economic growth for both the Scottish cities, stalled development sites in key commercialisation facilities. and UK economies, generating around locations and pressures facing existing • Enabling more small and medium 32% of Scotland’s GVA (Gross Value transport infrastructure remain key enterprises to grow by providing Added) and 33% of Scottish jobs. challenges. additional business incubator and It is also home to over 29% of all Recognising these comparative grow-on space for entrepreneurs businesses in Scotland. economic advantages and challenges, across Glasgow and the Clyde The City Region benefits from numerous the City Deal will support the local area Valley. economic assets, with existing strengths to achieve its shared long term vision • Tackling unemployment through the in areas including financial services, life for the local economy by: establishment of programmes that sciences, engineering, manufacturing • Establishing a £1.13 billion will provide targeted support to both and creative and media industries. Glasgow and Clyde Valley 16 to 24 year olds and vulnerable Successful universities and research Infrastructure Fund, to support residents that are in receipt of institutes provide the space for innovation the delivery of: an improved Employment Support Allowance. and the people who will drive regional transport network across Glasgow development. More widely, the region • Testing new ways of boosting the and the Clyde Valley; key benefits from a highly skilled workforce incomes of people on low wages, development and regeneration across a wide range of industries. making them more self-reliant. sites; and improved public However, the city and wider region also transport. face numerous challenges that act as QUARTER TWO 2016 2 A GLASGOW CITY REGION CITY DEAL BENEFITS OVER ITS LIFETIME local leaders • Support an overall increase in the by a minimum of £130 million of in Glasgow and the Clyde Valley economy of around 29,000 jobs investment from Glasgow and estimate that the City Deal in the City Region. Clyde Valley local authorities. will: • Work with 19,000 unemployed • Lever in an estimated £3.3 billion • Deliver a sustainable uplift in residents and support over 5,500 of private sector investment into GVA (Gross Value Added) of 4% back into sustained employment. the proposed infrastructure investment programme. (c. £2.2 billion per year) for the • Secure £1 billion of Scottish City Region and additional tax Government and UK Government • Spread the benefits of economic revenues of some £20.7 billion capital funding to support growth across Glasgow and Clyde over the 40 year lifetime of the proposed infrastructure Valley, making sure deprived areas fund as a result of the uplift in investment programme for the benefit from this growth. GVA at net national level. area. This will be complemented PROJECTS PROJECTS ARE SPLIT across three Infrastructure Projects themes. All projects will require a formal business case to be developed THE TWENTY INFRASTRUCTURE long-term growth, to: which sets out the scope and benefits PROJECTS selected were developed • Support an improved transport of the project. There will be three by officers from across the member network across Glasgow and the iterations of each business case, all authorities following a rigorous Clyde Valley; of which will be issued to Cabinet for economic modelling exercise. approval and stage funding. • Unlock key development and During the early stage of programme regeneration sites; and development and in light of the overarching strategic objectives of • Deliver improved public transport the City Region and the economic across the region. constraints identified, work was In 2013, a Programme Assembly undertaken by member authorities and exercise was carried out and a with Strathclyde Passenger Transport prioritised list of high level projects (SPT) and strategic planning colleagues agreed by the Leaders of the member to identify potential projects to be authorities at the beginning of 2014. included within an Infrastructure The process involved modelling the Programme. economic impacts for a list of The Infrastructure Fund represents a deliverable projects, and prioritising once-in-a-generation opportunity to them in order of GVA return per net deliver a step-change in the economic pound of whole-life cost. potential of the region and drive AQUARTER TWO 2016 3 GLASGOW CITY REGION CITY DEAL PROJECTS A final programme of projects was The £1 billion funding from Scottish The first Gateway Assessment will be selected – as set out in the table below. and UK Governments is contingent in 2019 to 2020. None of the projects can be viewed in on delivering economic outcomes Delivering and monitoring economic isolation. Identified benefits can only and has been structured through outcomes are therefore crucial to be fully realised as part of an overall Payments-by-Results (PbR) agreements the success of the City Deal and will programme of activity. Therefore, whilst with the UK and Scottish Governments, require supplementary analysis beyond projects have been prioritised on their subject to Glasgow City Region’s the usual cost-benefit assessments for economic impact, the GVA output of performance on programme delivery individual projects. the City Deal will be measured and and economic outcomes, which will be monitored on a programme basis. assessed at 5-yearly Gateways. Infrastructure Programme PROJECT AREA NET NOMINAL CAPITAL EXPENDITURE (£million) Inchgreen Inverclyde 9.4 A8/M8 Corridor Access Improvements North Lanarkshire 12.6 Collegelands Calton Barras Glasgow City 27.0 Clyde Waterfront and Renfrew Riverside Renfrewshire 78.3 AStewartfield Way South Lanarkshire 62.2 Metropolitan Glasgow Drainage Glasgow City 45.8 Canal and North Glasgow City 83.6 Greenhills Road/A726 Dual Carriageway South Lanarkshire 23.1 City Centre Enabling Infrastructure Public Realm Glasgow City 115.5 Glasgow Airport Investment Area Renfrewshire 51.4 M77 Strategic Corridor East Renfrewshire 44.0 Clyde Waterfront Glasgow City 113.9 Inverkip Inverclyde 3.8 Gartcosh and Glenboig CGA North Lanarkshire 66.3 B Ocean Terminal Inverclyde 14.2 Community Growth Areas (CGAs) South Lanarkshire 62.3 Pan Lanarkshire Orbital Transport Corridor North Lanarkshire 93.6 Cathkin Integrated Roads South Lanarkshire 21.6 Exxon Site West Dunbartonshire 27.9 TOTAL AUTHORITY PROJECTS £957 million PAN-REGIONAL PROJECTS Airport Access 144.3 Strathclyde