Michelin site plans laid out in wider Budget papers talk of ‘key location’

The Scottish Government has reaffirmed its commitment to the Tay Cities Deal, saying it expected to fully sign off on the investment package in the coming financial year.

A heads of terms agreement was signed in Perth last month, with Holyrood and Westminster collectively pledging £300m for the deal, in the expectation of leveraging in hundreds of millions more in private sector investment.

Finance Secretary Derek Mackay said he anticipated reaching full closure on the Tay Cities and Stirling and Clackmannanshire deals in the coming months.

Tay Cities will move to financial closure following a further round of scrutiny of the business cases of nominated projects, which include a proposed international barley hub at James Hutton Institute at Invergowrie and £10m to transform Festival Theatre.

The redevelopment of Michelin’s Dundee closure-threatened site was also flagged as a priority under Scottish Government sustainable economy initiatives.

The French giant sent shockwaves through the Scottish economy last month when it confirmed it would end production at the Baldovie site in 2020 with the potential loss of 845 jobs.

Finance Secretary Derek Mackay has led on the Michelin response for the government but the situation was not explicitly mentioned in his speech.

However, reference was made within the wider Budget papers to developing the “next stage of Michelin’s presence in Scotland”.

“We will work together to transform their Dundee site into a key location for new economic and employment opportunities in manufacturing, remanufacturing, recycling and low carbon transport,” the papers state. Pitlochry At the Scottish Chambers of Commerce annual business address last week, Nicola Sturgeon urged guests to take their opportunity to collar Derek Mackay for a pre-Budget chat.

The First Minister’s “here one minute, gone the next” appearance as guest speaker put the Finance Secretary squarely in the firing line.

Despite hundreds of Scotland’s top business people wanting to have a word in his ear, Mr Mackay remained cool, calm and collected throughout.

But, given his draft Budget speech yesterday, it seems Mr Mackay was listening.

His approach to business rates and the capping of the poundage rate means Scotland will maintain a competitive edge.

And his decision to kick the prettymuch universally disliked out-of-town retail levy into the long grass received a strong welcome from Scotland’s leading business organisations.

The out-of-town levy in particular was a focus of concern for the business community.

Indeed, more than 20 organisations representing all facets of the commercial life of Scotland signed a joint pre-Budget letter urging the Cabinet Secretary to ditch the plan.

In the current volatile political climate, it is refreshing Scotland has a government that is prepared to listen to its business base and take action.

There were also plusses from a longer-term economic standpoint, with commitments to skills and training – Michelin Dundee may well play a significant role in that particular space in the coming years – and cash to boost the modern apprenticeship programme.

Budget 2018 was not perfect – I have yet to see one that is.

But when one of the country’s largest business organisations describes it as “savvy” then it would appear you are doing something right at least.