The UK Government would consider offering Aberdeen one of its flagship “City Deals” to unlock major new investment and boost services.
Chief Treasury Secretary Danny Alexander revealed to the Press and Journal yesterday that he would look at including Aberdeen in the scheme.
City council leader Barney Crockett said such a move would have a “game-changing” impact, and could pave the way for help to build a new exhibition and conference centre, boost the harbour’s redevelopment, and build badly-needed housing.
Mr Alexander’s comments follow an announcement in Thursday’s autumn statement that Glasgow would become the first city outside England to be offered one of the deals.
The initiatives – already agreed for the eight biggest English cities outside London – give local decision-makers extra levers to boost growth, such as generous borrowing powers and the ability to create local employment and apprenticeship schemes.
City Deals had not been attempted in Scotland before because some of the powers are devolved to Holyrood. Mr Alexander called last night for the Scottish Government to support the plans for Glasgow.
Asked by the P&J whether other cities such as Aberdeen could receive a “deal”, the Highland MP said: “They could be considered.
“We haven’t done a city deal in a devolved area before, and so I think I would want to complete the process with Glasgow first. And if that works then we can certainly look at other cities like Aberdeen.
“I guess in Aberdeen the economic issues are quite different and actually, in Aberdeen, we’ve already provided pre-qualification to a government guarantee for a major housing development at Countesswells.
“Obviously the pressure in Aberdeen is about the growth of the economy and the ability of infrastructure and services to keep up with the pace of growth. But of course we would consider it.”
Mr Crockett, leader of the Labour-led local authority, which is Scotland’s lowest funded council, revealed officials had been discussing a bid for a City Deal for more than two years.
“City Deals are the big game-changer and that’s what we’ve been advocating,” he said.
Mr Crockett said he would be seeking a meeting with Mr Alexander.