Further talks will decide use of extra £50 million

Negotiations will continue on how to spend an extra £50 million of investment promised by the Scottish Government as part of the Tay Cities Deal.

The SNP administration pledged a total of £200m towards the deal ahead of last month’s budget talks.

The UK Government, which was challenged to match-fund the Scottish total, confirmed its investment of £150m.

The additional £50m did not feature in the Heads of Terms agreement signed in Perth yesterday, but will be subject to further talks with council leaders and groups across the regions.

Infrastructure Secretary Michael Matheson said: “The Scottish Government has made it clear that we will invest £200m to ensure this region and its economy receive the maximum benefits from this deal.

“I will be engaging with partners over the next couple of months to announce the additional commitment of a further £50m to help further growth in this area, in the years ahead.”

Mr Matheson added: “Through this deal we have the chance to see this region move forward into the industries of the future and I look forward to working over the months and years ahead to make sure this deal realises its full potential.”

Previous city deals have been signed on the basis of equal funding from both governments.

North-east Labour MSP Jenny Marra has suggested the extra money could be used to offset the damage caused by local job losses.

In a letter to First Minister Nicola Sturgeon, she said: “Given the challenges our local economy in Dundee is now facing with the situation at Michelin and a planned reduction of posts at NHS Tayside, I think Dundee needs some assurances from you on your £50m.”

Ms Marra said the funding would “allow us to bring new ideas to the table to boost jobs in Tayside”.

Seven deals have been struck, representing a total investment of more than £1.1 billion.