Aberdeen and Inverness could be on the brink of securing major new funding packages worth hundreds of millions of pounds.
Deputy Prime Minister Nick Clegg revealed to the Press and Journal yesterday that he wanted to sign-off landmark “City Deals” for both before the election in May.
Local authority leaders have said the special status would be “game-changing” for Aberdeen, and would “put Inverness on the map”.
In the Highland capital, the money could be used to help pay for a proposed new regional sports centre, a visitor attraction at Inverness Castle, and a major cultural development featuring a museum, library and gallery.
The Granite City’s council, meanwhile, has said the cash could help pay for new housing, a replacement exhibition centre, and an upgrade of Aberdeen harbour.
Glasgow became the first Scottish city to secure the status last year, winning £1.2billion in UK and Scottish government funding, as well as loan money.
Mr Clegg – the architect of the City Deal programme – yesterday gave the clearest signal yet that UK ministers were close to approving similar agreements for both Inverness and Aberdeen.
Asked whether they could be announced before the election, the Liberal Democrat leader said: “I’m not sure if we will definitely be able to confirm City Deals in Inverness and Aberdeen before the election, but I would really like us to do so.
“If we could, I would be very keen to do so. I don’t think that because a City Deal works for Sheffield, Leeds and Manchester, that they should be confined to those cities.”
He added “It’s great that we managed to get one delivered for Glasgow, and they were very quick of the mark by the way, I was really impressed by the city leaders in Glasgow.
“I think it’s a positive thing that others are now trying to follow suit.”
Glasgow’s deal will fund 20 major projects that are expected to help create 29,000 jobs and unlock £3.3billion of additional private sector investment for the area over the next two decades.
A total of 26 City Deals have been confirmed across Britain, but Glasgow is the only area of Scotland to secure one.
Each agreement is different depending on the needs of the local area, but all aim to provide extra levers to boost growth, including direct funding, greater borrowing powers, the ability to “earn back” tax from the Treasury, control of transport budgets and the ability to develop specialised skills programmes.
Highland Council deputy leader David Alston said: “It’s good news. It’s very encouraging.
“This is very much about putting Inverness on the map as vibrant 21st century city at the heart of the Highlands.”
Robert Collier, chief executive of Aberdeen and Grampian Chamber of Commerce, said: “We believe that a City Deal could provide an important source of funding for much of this work and we would encourage and support both councils to work together to secure this financial backing, to keep our region at the heart of a prosperous country.”