Inflation could have a negative impact on delivering the £100 million Moray Growth Deal.
The warning comes as the project’s first draft annual report goes before a meeting of Moray Council next week.
Also engagement with partners and management of the eight projects in the deal will have to be effectively coordinated to ensure success.
The growth deal was agreed in December 2021.
Inflation
It aims to attract young people in the area, create new high-quality jobs, support economic diversification and develop community prosperity.
The deal will also address inequalities such as the gender pay gap.
According to 2021, figures the difference in wages between men and women in Moray stood at 22.6%.
Funding for the deal has come from the UK and Scottish governments – £32.5 million each – with regional partners contributing up to £35.8 million.
The report states inflation is expected to cause cost projections to increase and is considered a risk.
It said: “With a fixed funding agreement in place with the governments, the projects will need to drive efficiencies, prioritise deliverables and/or seek additional sources of funding to move into delivery with a sustainable financial model.”
Projects in the deal include a bus revolution scheme to get more people using public transport and developing digital health technology.
There are proposals to develop town centre housing and create a cultural quarter in Elgin.
£100 million Moray Growth Deal
A business enterprise hub will be established and efforts will be made to grow young children’s interest in science, technology, engineering and maths.
An aerospace, advanced technology and innovation campus is expected to be set up, as is a manufacturing and innovation centre.
The draft annual report highlights work undertaken in the deal’s first 12 months.
It includes approval of the business cases for the bus revolution and digital health initiatives.
Bus revolution
A project manager and other staff have been recruited to take the deal forward.
The six other business cases are expected to be agreed by December this year or early 2024.
Around 3,500 jobs could be created by the deal, with 50,000 more tourists attracted to the area, 300 affordable new homes built and 450 businesses supported.
Targets are expected to be achieved in 2030.
If successful it will increase the value of the Moray economy by £82 million.
Conversation