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| Edinburgh and South East Scotland City Region Deal | |
|---|---|
| Name | Edinburgh and South East Scotland City Region Deal |
| Region | Edinburgh, Midlothian, East Lothian, West Lothian, Fife, Scottish Borders |
| Signed | 2018 |
| Partners | Scottish Government, UK Government, City of Edinburgh Council |
| Funding | £1.3 billion (combined public and private) |
Edinburgh and South East Scotland City Region Deal The Edinburgh and South East Scotland City Region Deal is a multi-year economic development partnership between the United Kingdom Treasury, the Scottish Government, local authorities including the City of Edinburgh Council, and private sector investors. It aims to boost regional productivity across the Scottish Borders, Fife, Midlothian, East Lothian, and West Lothian through targeted investment in infrastructure, innovation, and skills aligned with institutions such as the University of Edinburgh, the Roslin Institute, and the Edinburgh College. The Deal coordinates with national strategies like the Industrial Strategy (United Kingdom) and regional initiatives such as the South of Scotland Enterprise plan.
The Deal was negotiated amid post-2014 and post-2016 policy debates involving the Scottish Parliament, the UK Parliament, and civic actors from Edinburgh. It responds to comparative analyses published by organisations including the OECD, the Joseph Rowntree Foundation, and the Royal Society of Edinburgh on regional disparities across the Lothian and Borders areas. Motivations referenced by proponents included leveraging assets such as the University of Edinburgh Medical School, the Scottish National Gallery of Modern Art, the Royal Infirmary of Edinburgh, and the region’s life sciences cluster exemplified by facilities like the BioQuarter. Strategic aims drew on precedents set by the Glasgow City Region Deal and cross-border cooperation models involving the North Sea Transition Deal.
The governance structure established a Joint Committee comprising leaders from the City of Edinburgh Council, the Fife Council, the Scottish Borders Council, Midlothian Council, and West Lothian Council, with representation from the Scottish Enterprise and UK Research and Innovation. Private sector partners included trade bodies such as the Federation of Small Businesses and anchors like Royal Bank of Scotland and firms from the Edinburgh International Business Gateway. Academic stakeholders encompassed the University of St Andrews for regional collaboration, the Heriot-Watt University, and the Queen Margaret University. Delivery mechanisms referenced models used by the Northern Powerhouse programme and partnered with agencies like Transport Scotland and Historic Environment Scotland on placemaking.
The package combined public sums from the UK Treasury and the Scottish Government with private investment commitments, targeting approximately £1.3 billion across projects. Financial instruments included capital grants, match-funding, and loan facilities similar to those used by the Affordable Homes Programme and the Green Investment Bank (now part of the Macquarie Group). Major allocation lines covered digital infrastructure linked to the UK Digital Strategy, transport upgrades coordinated with Network Rail and ScotRail, and innovation funding to support translational research funded by Innovate UK and Wellcome Trust collaborators.
Signature programmes consisted of a regional innovation centre modelled on the Catapult centres, a life sciences “BioCampus” near the Royal Infirmary of Edinburgh, and transport corridors improving access to Edinburgh Airport and the Forth Road Bridge. Skills and employment initiatives partnered with Skills Development Scotland and local colleges such as West Lothian College to bolster apprenticeships linked to employers including BAE Systems and Primesight. Cultural and tourism enhancements referenced institutions like the National Museum of Scotland and festivals such as the Edinburgh Festival Fringe to promote inclusive growth. Environmental and low-carbon projects aligned with commitments in the Climate Change (Scotland) Act 2009 and cross-sector programmes like the Energy Skills Partnership.
Projected impacts included increased gross value added (GVA) in the region, higher labour market participation rates in locales such as Livingston and Dunfermline, and strengthened export capacity through links to ports like Rosyth and markets served by Edinburgh Airport. Social objectives targeted inequality reduction in wards formerly identified in studies by the Scottish Index of Multiple Deprivation and improved health outcomes through collaboration with the NHS Lothian health board. Evaluations drew on methodologies favoured by the UK Statistics Authority and economic modelling from consultancies used in previous deals like the Tees Valley programme.
Negotiations culminated in a Heads of Terms and subsequent signing in 2018, with phased implementation across short-term (2018–2021), medium-term (2021–2025), and long-term (2025–2035) horizons. Early workstreams prioritised planning consents coordinated with Planning and Environmental Appeals Division procedures and business case development following the Green Book (United Kingdom) appraisal framework. Delivery checkpoints referenced reporting mechanisms to the UK Cabinet Office and audit oversight by the Audit Scotland model.
Critics referenced concerns raised by campaign groups and think tanks such as the Scottish Greens and the Resolution Foundation about distributive effects, transparency, and the sufficiency of private leverage. Operational challenges included planning constraints near designated sites like Pentland Hills Regional Park, coordination across multi-jurisdictional transport bodies, and risks cited by stakeholders including the Federation of Small Businesses over skills mismatches. Fiscal scrutiny echoed debates in the House of Commons Library on the long-term return on public investment and comparative performance versus other UK city region deals.
Category:Economy of Edinburgh Category:Development projects in Scotland