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Aberdeen City Region Deal funding row rumbles on

Finance convener Willie Young
Finance convener Willie Young

Aberdeen’s finance chief Willie Young today called on the Scottish Government to invest a further £1.25billion in the north-east.

The Labour councillor demanded the SNP stump up funds to cover all of the proposals for devolved projects put forward in the £2.9billion Aberdeen City Region Deal bid.

He said this amounted to £1.5billion, some £1.25billion of which – intended for transport and housing – remains outstanding.

Mr Young acknowledged nearly 90% of the extra £254million pledged by the Scottish Government alongside the deal was for projects contained in the bid.

But he insisted it was now time the Holyrood administration agreed to pay for the rest, in addition to its half of the £250million already committed by the two governments.

It is understood the UK Government ruled out funding devolved aspects during negotiations on the basis city deals are not designed to pay for things already covered in the block grant.

This week the SNP claimed Aberdeen had been “swindled” by the Westminster Government, after figures revealed it is spending just £550 per head in Aberdeen – less than half the amount on similar deals south of the border.

Aberdeen Central MSP Kevin Stewart branded the revelation an “insult” to residents and argued they have been given a “duff deal” compared to their counterparts in places such as Manchester and Bristol.

But Mr Young told the Press and Journal that the comparison – dismissed as “politicking” by the UK Scotland Office – was not like for like, pointing out the English deals did not have input from a second government.

He said if anyone was “swindling” Aberdeen, it was the SNP, adding: “The Scottish Government can’t ask the UK Government to pay for matters that are devolved.

“Quite rightly the UK Government is saying ‘not on your nelly’. You can’t have devolution and then say it’s all Westminster’s fault.”

Conservative councillor Ross Thomson accused Mr Stewart of using “grievance as a smokescreen” and said there would not even be a city deal had Scotland voted for independence.

He said it was easy to blame Westminster – but insisted with more devolution comes additional responsibility and accountability.

He also pointed to the fact there is no legally binding agreement accompanying the extra £254million pledged by the Scottish Government – in contrast to the deal’s heads of terms document.

A Scottish Government spokesman said it had demonstrated its “strong support” for the region through the deal and the additional £254million investment.

He also flagged the funding for feasibility work, which could unlock more money once complete.

As well as the governments’ £250million joint contribution, the two councils are understood to be putting up £200million, with some £750million private investment envisaged.