Success of city deals difficult to measure, says audit watchdog

The long-term benefits of city deals like the one arranged for Dundee, Perth, Angus and Fife will be difficult to monitor, according to Audit Scotland.

In a report published today, Audit Scotland and the Accounts Commission say the £5.2 billion deals may have already missed opportunities they were intended to bring.

The funding for the Tay Cities Deal is expected to be fully signed off by the end of this month.

Auditor General Caroline Gardner warned a lack of aims and objectives for the programmes on the deal could make it difficult to measure success or failure.

Accounts Commission chairman Graham Sharp said: “City deals have had a positive effect across Scotland, strengthening relationships between councils, government, business, our universities and other partners.

“It’s early days but it’s important lines of accountability for deals are now made clearer and that the right staff are in place to develop and deliver deals at a time of considerable financial pressure for councils and the wider public sector.”

Ms Gardner said: “A significant amount of public money has been committed to city deals, but the programme’s lack of aims and objectives means opportunities may already have been missed to ensure deals contribute to national outcomes.

“The Scottish Government needs to show how it will measure deals’ long-term success and work with councils to improve transparency around the approval process for individual projects.”

Auditors recommend the Scottish Government devises measures to assess the long-term impact of city deals, including their value for money.

The Scottish Government accepted the findings of the report, pledging to reflect on them in conjunction with the UK Government and local authorities.

A spokesman said: “We welcome the report, which clearly highlights the positive effect that city region and growth deals are having across Scotland.”