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Glasgow signs £1bn infrastructure City Deal

Glasgow has formally signed a £1.13bn City Deal with the UK and Scottish governments, which will bring significant infrastructure investment to the area.

The Glasgow and Clyde Valley Infrastructure Fund, which remains the flagship proposal of the deal, will be used to take forward up to 20 infrastructure schemes across the city region.

To fund this, the UK and Scottish governments will each give the city region £500m in grant funding, and the local authorities will borrow a further £130m.

It is expected that over the next 20 years, the City Deal will give the region a permanent uplift in its GVA of £2.2bn per annum (4.4%); generate 15,000 construction jobs during the construction period and 28,000 permanent additional jobs once construction is complete. It is also expected to unlock £3.3bn of private sector investment.

Several projects that will be pursued under the deal’s remit include funding transport improvements to the M8, which is expected to unlock 800 hectares of new employment sites on the Clyde Waterfront and the West End innovation quarter. A scheme is also in place to provide a new bridge over the Glasgow Canal to improve access to the Northern Gateway. And transport routes from the city centre will be improved to Glasgow Airport.

The City Deal was  signed by Glasgow City Council leader Gordon Matheson; chief secretary to the Treasury Danny Alexander; Scottish local government minister Derek Mackay; UK minister for Universities, Science and Cities Greg Clark and leaders of the other participating local authorities.

Cllr Matheson said: “The signing of this City Deal is a momentous day for the Glasgow city region. The benefit this funding will bring to our infrastructure, economy and labour market will be felt for decades through tens of thousands of new jobs and increased competitiveness.”

In addition to the flagship infrastructure scheme, the City Deal has agreed to a number of complementary schemes that will help drive growth and support residents back into work.

These include a new £9m employment scheme that will work with over 4,000 vulnerable unemployed residents currently in receipt of Employment Support Allowance, enabling at least 600 claimants to get into sustained work. The UK government will provide £4.5m to support this scheme.

The UK government will also contribute £16m to the development of a new £64m Stratified Medicine Centre of Excellence, which will provide life science research and innovation facilities at the New South Glasgow Hospitals Campus. Part-funding is also being made available for a new £4m Centre for Business Incubation, Development and Recovery in Tontine House in Glasgow’s Merchant City.

Danny Alexander, chief secretary to the Treasury, said: “This is fantastic news for residents of the city and the Clyde Valley region, as it means those who know Glasgow best – the people who live and work here – can decide where this investment can benefit them and their families most.”

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