The Aberdeen City Region Deal was launched today (November 21) with the official signing of the £250million agreement.
The terms of the deal commit both the UK Government and Scottish Government to jointly investing up to £250m whilst Aberdeen City Council, Aberdeenshire Council and local partners are committed to investing up to £44m over the next decade.
The 10-year deal paves the way for investment in innovation, internationalisation, digital connectivity and infrastructure across the region.
It is designed to act as a catalyst for economic growth and diversification, with partners announcing that estimates suggest the Aberdeen City Region Deal’s total value could be up to £826m once private sector and other investment is factored in.
UK Government Minister Lord Dunlop and Keith Brown MSP, Cabinet Secretary for the Economy, Jobs and Fair Work, were joined by Aberdeen City Council Leader Councillor Jenny Laing, Aberdeenshire Council Co-Leader Councillor Richard Thomson and Opportunity North East Chairman Sir Ian Wood to sign the landmark document.
The Aberdeen City Region Deal encompasses a number of projects. It will support The Oil & Gas Technology Centre, a digital infrastructure fund and the proposed expansion of Aberdeen Harbour. A Bio-Therapeutic Hub for Innovation, Agri-Food and Nutrition Hub for Innovation and a Strategic Transport Appraisal are also part of the programme.
These projects are collectively estimated by the deal partners to be capable of delivering annual Gross Value Added (GVA) increases of £260m across the Aberdeen City Region, £222m in Scotland and £190m in the UK.
The partners also estimate the deal has the potential to create an average of 330 new jobs per year in the region, aggregating to 3,300 new net jobs over its 10-year lifespan. It could also generate additional annual tax revenues to the Government of £113m from income tax, national insurance, VAT and oil tax revenues.
Opportunity North East Chairman Sir Ian Wood said:
“The City Region Deal is a strong vote of confidence from Westminster and Holyrood in the dynamism, resilience, innovation and growth potential of our key industries. The deal partners, along with the wider business community, share the Renaissance vision for our region of significant economic development in the next two or three decades to build a broad and vibrant economic base supporting high quality employment to take us past the North Sea oil era.
“Opportunity North East, which now has the support of many key local bodies and individuals, is making good progress. We have been instrumental in securing the £210m of innovation funding in the City Region Deal – which will have a transformative impact in the years ahead – and we are pursuing opportunities to attract additional private sector funding. We really appreciate the support and confidence of the business community in this agenda of Renaissance and will work with them and the wider communities to tackle this region’s long-term economic challenges.
“Today marks the transition to a new and exciting phase with the first of the innovation projects, The Oil & Gas Technology Centre, up and running with its funding in place. This signals the ambition and pace of action needed to deliver projects that will contribute to resilience and growth in our economy. Transitioning Aberdeen from a centre of operations in offshore oil and gas to a globally-recognised leader in mature basin technology via The OGTC will anchor at least some of our supply chain post the North Sea. The two innovation projects for food, drink and agriculture and life sciences will likewise significantly enhance the long term potential for these industries to make a significant contribution to our economy.”
The Aberdeen City Region Deal agreement was developed over the last two years as a partnership between the UK Government, Scottish Government, Aberdeen City Council, Aberdeenshire Council, Opportunity North East, Scottish Enterprise and other local partners. It is governed by a Joint Committee of representatives from Aberdeen City Council, Aberdeenshire Council and Opportunity North East. For further information visit www.abzdeal.com.