Deal: Government pledges £200m for Tay cities

The Scottish Government has confirmed it will invest £200 million in the Tay Cities Region Deal, calling on UK ministers to match the amount.

The initiative includes investment in Dundee, Perth, Angus and the north of Fife.

It aims to create thousands of jobs over the next 10-15 years by focusing on skills, tourism, transport and innovation.

City Region Deals are agreements between the Scottish and UK Governments and local authorities designed to bring about “long-term strategic approaches to improving regional economies”.

Previous deals in other areas have seen Scottish and UK ministers match each other’s funding.

However the UK Government is yet to confirm how much it will commit to the Tay cities project.

An announcement could be made in the Chancellor Philip Hammond’s Budget on Monday.

Infrastructure Secretary Michael Matheson said: “Scotland’s cities and their regions are the engines of our economy.

“That is why I can confirm that the Scottish Government has agreed to invest £200m in the Tay Cities Region, to deliver significant long-term economic benefits.”

He added: “I expect City Region Deals to be funded on a 50:50 basis and I call on the UK Government to match our commitment”.

A UK Government spokeswoman said: “The Tay Cities deal will bring transformative change to the region.

“We expect to announce further progress very soon and will move quickly towards signing Heads of Terms following discussions with the partners.”