Fears election will jeopardise Tay Cities Dealfunded projects

Break up of Parliament will put back long-awaited agreement sign-off

December’s snap general election could put some Tay Cities Deals-funded projects in jeopardy, The Courier can reveal.

The election will delay the signing of the final heads of terms agreement, which had been due to take place this week, until next year.

Council leaders called the delay “disappointing” while sources warned the delay could make some projects “unaffordable”.

Vital projects funded by the Tay Cities Deal could be put at risk by the general election, The Courier can reveal.

The December 12 vote will see Parliament break up on Wednesday – meaning the signing of final heads of terms for the long-awaited deal will be pushed back further.

Well-placed sources say further delays to rubber stamping the completed agreement could make some of the planned projects “unaffordable”.

The initial terms of the multi-millionpound cash injection were signed off last November. It will fund major projects like a third road bridge across the Tay north of Perth and developments at the Hutton Institute, St Andrews University and in Dundee, although a source who has worked on a project agreed in the deal said there are fears delaying the final sign-off further would add to overall construction costs for some of the larger projects.

This in turn, they said, meant less money would go to supporting the overall project, as so much of the budget would be consumed in initial costs.

“A lot of the projects were thought up about four or five years ago and, with further delays like this, it could mean they won’t be completed a decade after they were first proposed,” said the source.

“The cost of building inflates each year by around 3.5%, and if the money isn’t agreed before the end of the financial year in 2020 then costs will go up again. It is ridiculous, it could make projects unaffordable.”

Purdah rules ban the government from making any announcement until after the election, with another source saying it is unlikely the deal can now be finalised before the new year.

Dundee City Council administration leader John Alexander said: “There is a general feeling of disappointment the final heads of terms could not be signed off a year after the initial terms were signed. We had anticipated it all could have been finalised before the end of the year, but the general election has put paid to that.”

The initial signing of the Tay Cities Deal last November saw more than £700 million promised in investment.

Funding for 23 projects was unlocked as part of the “transformative” deal, with £150m from both the UK and Scottish governments to be delivered over the next decade-and-a-half.

Under the deal more than £60m will go to the James Hutton Institute in Invergowrie, £37m will be ploughed into local tourism and culture, more than £10m will go towards a cyber security centre in Dundee, several million will be invested in St Andrews University’s Eden Campus and £15m will go towards a Perth bus and rail interchange project.

A Tay Cities Deal spokesman said: “We are continuing to work with the UK and Scottish Government to deliver the Tay Cities Deal.”

Picture: Steve MacDougall.