Aberdeen City Region Deal

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The Aberdeen City Region Deal

In November 2016, Aberdeenshire Council, Aberdeen City Council and Opportunity North East agreed a City Region Deal with the UK and Scottish Governments. You can view the City Region Deal agreement here.

The Value of the Aberdeen City Region Deal

The Aberdeen City Region Deal is valued to be worth £826.2 million over a ten year period.  Significant investment is being provided by UK Government (£125m), Scottish Government (£125m), Aberdeenshire Council (£10m), Aberdeen City Council (£10m), the two Universities in Aberdeen (£23,500), Private Sector and other local economic partners (£532,700m).

(£’000s)

Total

UK & Scottish Governments

250,000

Aberdeenshire and Aberdeen City Councils

20,000

Universities

23,500

Private Sector

485,450

Other economic partners

47,250

Total

826,200

 

The City Deal Projects

 

The Oil & Gas Technology Centre is a new industry-led organisation, based in Aberdeen. It will focus on developing, adapting and deploying technology that helps maximise economic recovery from the UK Continental Shelf and other oil and gas basins around the world, while anchoring high-value activities and jobs in the UK, and creating a sustainable, vibrant economy in the North East of Scotland.

 

The Bio-Therapeutic Hub for Innovation and the Agri-Food and Nutrition Hub for Innovation will support the diversification of the region’s economy by building on our existing industries of life sciences and the food, drink and agriculture sectors. Work on the specifics of these hubs is currently under development.

 

The Digital Infrastructure fund will help address the digital challenges of the City Region and deliver affordable world class ultrafast internet services to businesses of all sizes in the region. A gap analysis has now been completed identifying the specific shortfalls in infrastructure and it is anticipated that procurement will commence in 2017 to build the necessary infrastructure.  Work on a business plan for this fund is currently under development.

To support the physical infrastructure of the region there will be a number of Strategic Transport Appraisals. These will take a long-term strategic view of the transport requirements looking at the City Region Deal investment across a number of transport modes including road and rail. Work on the scope of these appraisals is currently underway in collaboration with Transport Scotland.

The City Region Deal’s support for the harbour expansion recognises its strategic importance, not just to the energy sector, but the wider diversification of the region including tourism opportunities. The funding will also develop the external supporting infrastructure to the harbour expansion plans if they go ahead.

The City Region Deal funding for the 6 Project Areas: 

 

 

(£'000s)

Total

City Region Deal Funding Allocation

The Oil and Gas Technology Centre

354,100

43%

Bio-Therapeutic Hub for Innovation

38,000

5%

Agri-Food & Nutrition Hub for Innovation

20,100

2%

Digital Infrastructure

32,000

4%

Strategic Transport Appraisal

7,000

1%

Aberdeen Harbour Expansion

375,000

45%

Total

826,200

100%

 

What the City Deal means for the Region’s economy

The regional partners have carried out economic modelling which suggests that the Deal is capable of delivering:

  • Annual GVA increases of £260 million across the Aberdeen City Council and Aberdeenshire Council areas, £222 million at the Scotland level and £190 million in the UK.
  • An average of 330 new jobs per year, aggregating to some 3,300 new net jobs over the 10 year lifetime of the deal.
  • Additional annual tax revenues to the Government of £113 million from income tax, national insurance, VAT and oil tax revenues.

 

How the City Region Deal is governed

Central to the governance arrangements is the Aberdeen City Region Deal Joint Committee, established under the Local Government (Scotland) Act 1973.  The Committeewas established in December 2015 in order to oversee the implementation and monitoring of the Aberdeen City Region Deal.  It works with both Governments to ensure delivery of the Aberdeen City Region Deal. There are nine seats on the Joint Committee, made up of three representatives from each of the administrations of Aberdeen City Council and Aberdeenshire Council, and the Board of Opportunity North East.

Contact Details

Aberdeen City Region Deal Programme Manager: John Paul Cleary, Aberdeen City Council, Woodhill House, Westburn Road, Aberdeen AB16 5GB - jcleary@aberdeencity.gov.uk

For more information on the background of the development of the City Region Deal visit www.abzdeal.com

 

 

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