UK government and Scottish Government both commit £500 million to Scotland's largest city
Glasgow is in line to benefit from over £1 billion worth of funding to tackle unemployment and skills shortages.
The UK government will provide £500 million worth of funding over the next 20 years under its City Deal scheme, which the Scottish Government has agreed to match. A further £130m will be provided by local authorities in the area.
Prime Minister David Cameron announced the UK government funding ahead of his recent anti-independence speech in Perth in a bid to highlight how, he claims, Scotland would benefit as a result of a no vote on September 18.
Following the announcement, and confirming the Scottish Government would match the funding, Nicola Sturgeon, deputy first minister, immediately hit back saying Scottish Government spending on Glasgow dwarfs that of the UK government.
The money will be used to fund projects such as city centre-airport rail link, major improvements to the region’s roads and bus network, and the development of new employment sites.
In exchange the local authority will take measures to further reduce unemployment and help move people in low-paid jobs into higher paid ones.
People make Glasgow – and it is the hardworking people of Glasgow that are helping build a stronger economy and fairer society, creating a lasting legacy for generations to come
The UK government claimed its funding could create around 28,000 new jobs, generating around £1.75bn of growth in the Glasgow economy every year.
In a joint statement Prime Minister David Cameron and Danny Alexander, chief secretary to the treasury, said the people who live and work in Glasgow will be able to decide where the investment can benefit them and their families most.
They said: “These are genuine powers that will change the fortunes of people across the region by creating new jobs, improving transport networks, boosting businesses and providing skills to young people and the long-term unemployed.
“People make Glasgow – and it is the hardworking people of Glasgow that are helping build a stronger economy and fairer society, creating a lasting legacy for generations to come.”
Sturgeon said the Scottish Government has already provided £1.1bn capital funding to Glasgow City Council since 2008 and has spent £1.5bn in projects such as the Commonwealth Games and Glasgow Subway improvements.
She added: “As well as matching the UK government funding now, we will also guarantee this funding to Glasgow when Scotland becomes independent.
“However, unlike the UK government, we will ensure that all of Scotland’s cities can benefit as well - which is the intention of our recently announced growth accelerator funding model.”
Both funding announcements come just two weeks after the Scottish Parliament’s welfare reform committee revealed five of Glasgow’s local council wards were the worst affected in the country by welfare reforms.
The study, undertaken by the Centre for Regional Economic and Social Research at Sheffield Hallam University, estimated reforms – including changes to housing, disability and child benefits – hit the average working adult in the pocket by £880 per year compared to just £180 in St Andrews.
