NORTHERN Scotland's case for special status has cleared a major hurdle with George Osborne confirming Aberdeen and Inverness were being considered for landmark City Deals.

 

In his Budget, the Chancellor said the £1.2 billion City Deal secured by Glasgow and the wider Clyde Valley, and the first awarded in Scotland, would continue.

He also said both Inverness and Aberdeen were now being considered, in a move champions of the idea said underlines the move towards further devolution to the UK's cities.

Local authority leaders in Aberdeen and Aberdeenshire hope the deal can unlock almost £3billion worth of infrastructure improvements in the north east over the next 20 years and enable it to build on its role as the UK's energy capital.

Highland Council will receive £100,000 to help the authority work up proposals for a its own City-Region Deal for Inverness.

There were reports earlier in the week that the Westminster government planned to sign-off a City Deal for the Highland capital later this year, with Aberdeen's bid even further advanced.

One source said both cities are in a similar position to Glasgow before its Deal was confirmed. The source added that while there was clearly party politics involved, with Inverness the seat of Chief Secretary to the Treasury Danny Alexander and Alex Salmond challenging in Aberdeenshire, City Deals were being rolled out to smaller cities across the UK.

An Aberdeen City Council spokesman said: "The Deal promises to be the most ambitious investment programme ever developed by the public and private sectors and academia for Aberdeen and Aberdeenshire and aims to release some £2.9 billion for infrastructure improvements over the next 20 years, supported by an economic strategy focusing on internationalisation, innovation and skills.

"It will act as a catalyst for growth and diversification, with an impact on the economy, connectivity, infrastructure, housing, and jobs, the key elements needed to attract and retain the people support the energy economy.

Jim Gifford, Aberdeenshire Council leader, said: "This is the start of a negotiation with both UK and Scottish Governments that will shape the region for many years to come."

Leader of Highland Council, Jimmy Gray, said: "We have outlined some potential projects that could boost the economic growth of the city as well as the Highland region and the wider economy."

City Deal, of which there are 27 in the UK, differ depending on local specifics but all aim to boost growth, including direct funding, greater borrowing powers, the ability to earn back tax from the Treasury, control of transport budgets and the ability to develop specialised skills programmes.