£ 120m short in historic Ayrshire Growth Deal
The growth deal trying to save Ayrshire’s economy is £ 120 million less than needed, it has been claimed.
The Westminster government stole a march on Holyrood and the three Ayrshire councils by wading in with the first £ 100 million last week.
We exclusively revealed Scottish Secretary David Mundell was making the Ayrshire Growth Deal announcement.
It left North, South and East Ayrshire councils grappling for traction.
And Holyrood’s Michael Mathieson was clearly incensed at being left in the lurch.
He was left having to tweet to catch up, saying he was “disappointed that the UK Government has decided to depart from previous practice of agreeing joint announcements on growth deal support”.
But he said: “We will of course match the £ 100m announced for Ayrshire by the UK Government.”
It has emerged Ayrshire is only likely to get a total of £ 240 million, with the three councils only putting in a total of £ 40 million.
And that will be over a period of 10- 15 years and not an immediate golden pot.
The brains behind the Ayrshire Growth Deal wanted £ 360 million injected into the economy.
A source revealed: “I don’t want to take all the shine off this announcement but the councils will really only be putting in a couple of million each a year.
“The wish was for £ 360 million and we did not get it.
“Even the Ayrshire Growth Deal website still says £ 300m, which is also not happening.”
However a spokesman for the deal insisted this week: “That was an aspirational figure.
“We are still delighted at the amount of investment.”
An economic package backed by the three councils was first mooted in 2015 and the term Ayrshire Growth Deal formed. At the time retired South Ayrshire leader Bill McIntosh described it as a “game changer and life changer”.
The councils have still not worked out what each will contribute but say it is “likely to be around 20 per cent of the overall package”.
The plan is for the public cash to trigger £ 2 billion of private investment and lead to 16,000 jobs.
Elena Whitham, depute leader of East Ayrshire Council, said: “Hard work and determination have paid off and this is the first Scottish noncity deal. It will transform our communities for generations to come.”
South Ayrshire supremo Douglas Campbell said: “This is a ringing endorsement of Ayrshire’s potential.”
Projects planned include a Spaceport infrastructure and visitor centre in Prestwick, freeport status at Ayr Port and Falkland rail yard and a national energy and research centre in Cumnock.
The former Johnnie Walker bond in Kilmarnock will be developed and Irvine will be boosted as a “major waterfront destination” involving the defunct Big Idea and the Ardeer Peninsula.
There will also be investment in road and rail infrastructure.
David Mundell said: “We look forward to working with the Ayrshire councils, the Scottish Government and the private sector to finalise the details of the innovative projects to be funded through the Growth Deal.”
Ayr MSP John Scott said: “This commitment of funding to Ayrshire is enormously welcome and shows what can be achieved when all levels of government come together to deliver positive change locally.
And he added: “Having been involved in lobbying for the delivery of a Growth Deal for Ayrshire, I very much look forward to seeing this partnership between the UK and Scottish governments and local councils taken forward and to further progress being made.”