The Scottish Government has announced its first two Investment Zones, which aim to boost the economy, stimulate business growth and create high-quality jobs.
The Glasgow city region and the north east of Scotland will each be supported by up to £80m in targeted investment, tax reliefs and other incentives over five years, following a joint selection process by the Scottish and UK governments.
Scottish ministers have tailored the UK Government’s Investment Zone model to ensure it aligns with the National Strategy for Economic Transformation and supports innovation in sectors such as net zero, digital and life sciences. There will be a strong emphasis on fair work, mirroring the arrangements for Green Freeports.
The initiative is to be delivered by each area’s Regional Economic Partnership. They will propose which sectors should be the focus of support, taking into account regional strengths and activity within higher and further education institutions. Regional leaders, businesses and universities will take the lead in shaping and developing specific plans.
The Scottish and UK governments have an equal role in decision-making and overseeing delivery.
Wellbeing Economy Secretary Neil Gray said: “This is a milestone in the delivery of Investment Zones in a way that enhances Scotland’s economy while aligning with our distinctive priorities.
“They will form part of a joined up approach that draws on the expertise of our world-leading research, education and training institutions, dynamic business sector and skilled workforce and will enable local communities to benefit.
“A rigorous process has been followed in selecting Glasgow city region and the north east and we look forward to working in partnership with them to create high quality jobs and ensure that fair work practices, including payment of the real living wage, are embedded in the Investment Zones from the outset.
“We will, of course, continue to invest in all of Scotland’s regions, for instance through Growth and City Region deals, to build on their strengths and stimulate jobs and growth.”
The UK Government’s Spring Budget committed to establishing 12 Investment Zones across the UK, and announced eight proposed locations in England, with a further four to be located in Scotland, Wales and Northern Ireland.
Glasgow Chamber of Commerce chief executive, Stuart Patrick, responded: “Today’s announcement brings welcome investment that will secure growth opportunities for blossoming businesses in Glasgow.
“The city is the third-top tech destination outside London and this decision not only recognises this well-deserved accolade, but equally backs the potential of our three innovation districts in engineering, life sciences and advanced manufacturing.
“After the disappointment of the freeports decision, we have been actively lobbying for support to help the city’s economy recover - so we are extremely pleased to see fresh money and targeted tax incentives to help further cement Glasgow’s status as an emerging tech hub.”
Sir Ian Wood commented: “The awarding of an investment zone to the north east of Scotland is a significant boost to our region and we are grateful to both the Scottish and UK governments for recognising the need to support us as we continue to transform our Regional economy.
“It is important to move forward at pace, so we have established an Investment Zone Steering Group, aligned with our recognised Regional Economic Partnership, to build on this work and identify the sectors and locations that will benefit from the incentives allowing us to secure sustainable economic growth and job creation whilst supporting a managed and just transition.“
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