MSPs want second round of growth deals to ‘go further and deliver more’

Ministers at Holyrood and Westminster are being urged to commit to funding a second phase of growth deals for cities and regions across Scotland.

MSPs on Holyrood’s Economy Committee however have also made clear there needs to be “reform and renewal” of such deals – saying projects can be delayed because of “slow and overly bureaucratic processes”.

However the committee insisted that if changes can be made, a second phase of deals could “go further and deliver more”.

Scotland has 12 city and regional growth deals in place across the country.

The deals, which involve cash from both the Scottish and UK governments, along with local partners, are aimed at boosting the economy of their areas, as well creating jobs and improving infrastructure.

An inquiry by MSPs on the Economy and Fair Work Committee found that by providing funding over several years, such deals can help give confidence to investors and improve planning for projects.

But the committee also found the partnership arrangements could lead to more bureaucracy and complicated governance arrangements.

Instead of this they said growth deals should be more flexible, so they can adapt quickly if economic circumstances change.

MSPs also heard concerns from some businesses that projects are chosen “behind closed doors”, and the small business community does not have enough input into decisions.

As such the MSPs said it should be easier for those involved, and the wider community, to understand why decisions on certain projects are made – with the committee calling on the Scottish and UK governments to consider this issue as they review governance arrangements.

The committee also said transparency in decision making should be a condition of an award of growth deal funding.

Speaking as the report was published, committee convener Colin Smyth said: “The committee is clear – there should be a second phase of city and regional growth deals.

“We want to see firm commitments from both the Scottish and UK governments to continue this investment, but to do so with reform and renewal at its heart.”

Mr Smyth said growth deals “have shown that long-term, place-based investment can deliver real change”.

But he insisted: “Future deals must be less bureaucratic, more flexible and streamlined – recognising that local partners are not distant decision makers, but are best placed to drive delivery.

“Too often the current process is slow and overly bureaucratic, delaying vital projects and undermining confidence among local partners.

“We need to see a faster, more streamlined approach that respects the expertise of local and regional bodies to get on and deliver.

“Greater transparency and private sector involvement will also be essential to making sure future growth deals truly meet the needs of communities and local economies.

“These should be the foundations of a second phase of deals that go further and deliver more.”

A UK Government spokesperson said: “City region and growth deals have been a huge success and they will continue to drive local growth in every part of Scotland, improving living standards for everyone.

“UK Government investment in the programme in Scotland is now £1.5 billion which combined with Scottish Government funding means more than £3 billion invested.

“Separately, the UK Government is investing £947 million in more than 40 local growth projects and programmes across Scotland.”

The spokesperson added: “Partnership working with the Scottish Government and local partners is key to driving growth and improving living standards.

“We will build on the success of the deals to ensure places like Glasgow City Region have the tools they need to deliver change and unlock the same levels of growth as their English counterparts like Greater Manchester. This is our Plan for Change in action, working with partners to deliver a decade of national renewal.”

A Scottish Government spokesperson said: “The Scottish Government is investing £1.9 billion in city and regional growth deals, which have a further 10 years to deliver.

“We work consistently with the UK Government and regional partners to explore how to build on this success. We share the committee’s view on the value of regional working.

“Our programme for government this week commits to exploring how to further devolve decision-making and delivery to regional economic partnerships.”