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Greg Clark - Department for Communities and Local Government

In March 2015, the Government announced the intention to negotiate a City Deal with Aberdeen. This followed the successful agreement of City Deals across England and the Glasgow and Clyde Valley City Deal in Scotland. I can today inform the House that the Government has reached agreement with the Scottish Government and civic and business leaders in Aberdeen and Aberdeenshire on a Heads of Terms City Deal.

This Heads of Terms City Deal agreement includes establishing a new investment fund for Aberdeen and Aberdeenshire of up to 250 million, with equal contributions of 125 million from the UK and Scottish Governments.

This fund will support a set of proposals from the region including investment in a new Oil and Gas Technology Centre. This will help the industry to exploit remaining reserves and increase investment in research and development to support future decommissioning. The deal will also support the diversification of the wider economy in Aberdeen and Aberdeenshire, and includes support for innovation in biopharmaceutical, food and drink, and digital sectors.

Further, the investment fund will support increased investment in digital infrastructure, which will address the connectivity challenges of the whole region, and the expansion of Aberdeen harbour and transport facilities.

Funding agreements are subject to final business cases which demonstrate value for money, and the Government will work with the Scottish Government and the civic and business leaders of Aberdeen and Aberdeenshire to ensure the successful implementation of the agreed deal.

 


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