Glasgow leaders call for £400m-a-year devolution deal

Under the plan, the money would come as a single, long-term funding settlement, rather than councils having to bid for short-term, ring-fenced pots. Leaders say this would allow them to plan and deliver major projects more effectively, with ministers setting broad outcomes but the region deciding how the money is spent.

Ministers are told that while public, private, education and voluntary organisations have “worked tirelessly to find and deliver the right policies and programmes to enhance the prosperity of Glasgow City Region”, they are currently “constrained by the existing model of funding and devolved powers”.

In a foreword to the document, Susan Aitken, chair of the Glasgow City Region Cabinet and leader of Glasgow City Council, said: “Now is the time for both of our governments — at Westminster and Holyrood — to commit to rapid devolution of the powers and resources befitting our scale and record of delivery.”

Greater Manchester and the West Midlands Combined Authority, led by mayors Andy Burnham and Richard Parker each secured “trailblazer” devolution deals in March 2023, committing them to long-term single funding settlements replacing multiple grants.

Under the deals, both areas retain 100% of their business rates for 10 years and gain new powers over adult skills, housing, transport and regeneration.

Manchester Mayor Andy Burnham stands in front of a Bee Network bus.

The proposal from Glasgow City Region argues that while the current arrangements have delivered substantial results, , it needs something similar.

On past successes, they point to the £1.13 billion City Deal is described as “Scotland’s largest infrastructure programme”, projected to unlock 10,000 new homes, attract £2.76 billion of private investment and create 16,000 jobs.

Other programmes, including the £160 million Investment Zone and a UK Government-backed 5G Innovation Region initiative, are cited as further examples of regional delivery.

The document says the city and surrounding areas have been held back by fragmented and short-term decision-making.

It states that “time-limited funds that primarily reflect national priorities do not always maximise local impacts” and that changes to major multi-agency projects have been “incredibly complex and time-consuming for all parties”.

It argues that funding currently held by national agencies such as Scottish Enterprise and Skills Development Scotland should instead be routed to the region, saying that “money drives behaviour”.

"The City Deal funding has transformed how the Region’s local authorities operate because it encouraged collaboration and fostered partnership working. Now is the time for Scottish Enterprise, Scottish Development International and Skills Development Scotland to have regional funding to deliver against clearly agreed regional objectives.

"Similarly, like our counterparts in Greater Manchester and West Midlands Combined Authorities, we need the UK government to offer a dedicated budget to the Region to deliver against mutually agreed outcomes."

The region is also seeking the power to borrow and invest. The document states: “We understand the fiscal constraints under which both governments operate. We recognise there will be times it makes sense to borrow for regional activity.

“Under the existing arrangements, this would require one council borrowing on behalf of the others, which would be challenging. A lot of our plans for regional working — whether that be a metro or the reimagining of our town centres — can be delivered in partnership with the private sector. Having powers for land assembly and Tax Incremental Financing for schemes such as mass transit is essential to give us the time, resources and capacity to deliver at scale — without always having to look to government for support.”

Glasgow Region leader, Susan Aitken (Image: Susan Aitken)

Under the proposal, the devolution deal would be delivered in two phases.

From this year, the region would take control of local skills and training programmes, an investment fund for major regeneration and infrastructure, business support for local sectors such as care, retail and transport, and programmes to help people with long-term health conditions return to work.

From 2030, the region wants the powers and funding to begin delivering the long-planned Clyde Metro — a joined-up mass transit system across Glasgow and surrounding local authorities, integrating trains, buses and potentially new light rail routes.

The authors argue that the region already has “the capability and capacity to deliver”, describing its Programme Management Office as “the ninth delivery partner” and “the largest regional team in Scotland”, operating with the “agility and focus of a start-up”.

They add that the package would “create a model for regional devolution that could be rolled out across Scotland”.

They also argue that it could help tackle deprivation. Inverclyde is identified as having “the greatest breadth and depth of socio-economic challenges in Scotland”, with leaders saying more devolved power would allow “programmes based on well-evidenced local needs”.

The document says that the region has reached “a maturity in delivery” after a decade of joint working and now requires the ability to act “at scale”.

Cllr Aitken told The Herald: “Glasgow City Region is one of the UK’s biggest collaborative success stories. Leaders across Scotland’s only metropolitan region have worked closely to fundamentally transform its economy and deliver one of the country’s biggest infrastructure programmes.

“However, we have achieved this without many of the powers, flexibility and financial backing available to most of our peers — and we know that, in a competitive economy, continued success is not guaranteed.

“It is time for both of our governments — at Westminster and Holyrood — to commit to the rapid devolution of powers and resources that reflect our region’s scale, its remarkable record of delivery and its extraordinary potential.

“Delivering the kind of deal the region merits is not a job for either one of our governments, but both.

“We have made our case to both — and we have enjoyed positive discussions with both, but with little concrete progress.

“It is past time for our governments to turn words into action. These proposals may be Glasgow City Region’s ask of national government — but they are also an offer. Back Glasgow and it will deliver.”

A UK Government spokesperson said: "Glasgow City Region is at the heart of our Plan for Growth in Scotland. We are delivering almost £700M funding for the region including an Investment Zone focussed on developing advanced manufacturing and a strategic partnership with the National Wealth Fund.

"Devolution within Scotland is a matter for the Scottish Government, but as Scottish Secretary Douglas Alexander confirmed at the Glasgow Economic Leadership board yesterday, building on the success of city and growth deals we will work with them to help ensure they have the tools they need to deliver change and unlock the same levels of growth as their English counterparts like Greater Manchester."

Deputy First Minister Kate Forbes said: “The Scottish Government is working to identify how best to formally devolve elements of decision-making and delivery to Regional Partnerships.

“We have been engaging with a wide range of people with an interest in regional working, including local government, educational institutions, businesses, public bodies, the third sector and regional transport partnerships.

“I met with Glasgow City Region’s Economic Leadership group on Thursday to discuss this further and will be able to share progress on these proposals in the coming weeks.”