Agenda item

Consider report by Service Director Strategy and Policy (Copy attached)

CITY DEAL PROPOSAL

5.       There had been circulated copies of a report by the Service Director Strategy and Policy seeking approval for Council participation in the development of a business case for a City Deal for the Edinburgh City-Region/East of Scotland.  The business case would investigate the potential for City Deal to contribute to the funding of future economic infrastructure across the city-region.  The background to the report explained that ‘City Deals’, initiated in 2011 as part of the UK Government’s ‘localism’ agenda, sought to promote economic growth through investment in enabling infrastructure.  The cost of the investment would then be recovered through increased tax revenue resulting from the economic growth.  An outline was given, for information, of a City Deal for the Glasgow City-Region which was secured in July 2014.  The City of Edinburgh Council was promoting a bid for the Edinburgh City-Region.  The area being considered was that covered by SESPlan, i.e. City of Edinburgh, East Lothian, the southern part of Fife, Midlothian, West Lothian and Scottish Borders.  The other Councils had already agreed to participate.  There was also a possibility that Dundee City may also become involved in the project, due to its links with Fife. A City Deal for the city-region could bring significant investment in infrastructure and could support economic growth across the city-region.  In order to assess the likely benefits, including potential investments in the Scottish Borders, and to fully assess risks, further work needed to be carried out to establish if a robust and verifiable business case existed.  Funding support of up to £25,000 was required as the Council’s contribution towards the development of the initial business case.  This had been identified from existing Neighbourhood Services revenue budgets.  Once that business case had been developed further consideration would be needed of the Council's future participation in a City Deal bid for the south east of Scotland. 

6.       In the ensuing discussion Members were in favour of pursuing the proposal to participate in the development of a business case, after which the Council should carefully consider the value of potential leverage of funding anticipated through the City Deal and the level of benefits the City Deal would offer to the Scottish Borders.  Points were made that in view of the geography of the Borders and in particular the aspiration to extend the Borders Railway, there should also be consideration given to working with Carlisle.  There was agreement that, with regard to investment in infrastructure in the Scottish Borders, equal attention should be given to projects to improve East - West communications/routes as well as to North - South developments.  It was noted that the timescales for the bid outlined in the report were very tight. It was agreed that there should be a recognised person to lead the Council’s contribution towards the development of a business plan, in order to provide political leadership and ownership.  Mr McGrath was asked that, once the business case had been finalised, a briefing be arranged for Members in addition to a report, so that Members would be in possession of comprehensive information around the benefits and risks of the proposal prior to a formal decision on participation.

DECISION

(a)       NOTED the potential for a City Deal.

(b)       AGREED that:-

(i)            the Council participate in developing a potential submission;

(ii)          a contribution from the Council of up to £25,000 be made available to support the development of the business case; and

(iii)         officers provide a Members’ briefing and bring a further report to Executive, outlining the benefits and risks of the proposal, prior to any formal decision on participation beyond the development of the business case.