Appendix 1 - Summary extract from the Tay Cities Region Deal Annual Report
Perth and Kinross Council · 7 May 2025
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Appendix 1 (SUMMARY OF Tay Cities Region Deal - Annual Performance Report 2023 – 2024) Introduction An Introduction from the 2024 and 2025 Chairs of the Joint Committee Cllr Ross Fife Council (Joint Committee Chair 2024) Cllr Flynn Dundee City Council (Joint Committee Vice Chair 2024 and Chair 2025) The Tay Cities Region Deal continues to demonstrate successful partnerships between the UK and Scottish Governments, the local authorities of Angus, Dundee, Fife and Perth & Kinross, the Higher and Further Education sector, business sector, third sector, Tactran, VisitScotland, Scottish Enterprise and Skills Development Scotland. In April 2024, the Tay Cities Region Deal entered the fifth year of its 10-year lifespan. To date, there has been over £231m approved by Governments and the Partnership for investment from the full £300m Deal. With 2,451 jobs and over £180m of leverage secured to date, the Deal is undoubtedly delivering growth and driving investment into the area. Over the last 12 months, there has been a tremendous amount of progress towards the delivery of projects, including some key milestones being reached. This includes the official opening of Perth Museum in March 2024. This must-see attraction is a major cultural venue, also becoming home to the Stone of Destiny which is presented in a walkthrough experience. The popularity of this has seen the museum welcome its first 176,000 visitors as of September 2024. May 2024 saw the Growing the Tay Cities Biomedical Cluster Project complete the refurbishment of Wilson House, which will allow high-growth companies to deliver the therapeutics, diagnostics and healthcare innovations of tomorrow, whilst also increasing industry partnership. The other elements of this Project will officially open in Spring 2025. The Advanced Plant Growth Centre, which has become the heart of the James Hutton Institute, opened in August 2024. The centre is home to world-leading plant science, delivering innovative solutions for food and environmental sustainability. The Wolfson Foundation has provided an award of £1m towards equipment that has also been supported by Scottish Enterprise and will be housed within a new Molecular Phenotyping Centre, which is set to open in March 2025. The Tay Cities Region Partnership, including Governments and Joint Committee, continues to monitor the economic challenges faced by all, while recognising the positive outcomes of the Deal to date. At this point, much has already been achieved in delivering the Deal’s ambitions for a fairer, smarter Tay Cities region. Whilst the Partnership recognises the economic challenges the city region continues to face, we are very pleased with the positive outcomes achieved by the Tay Cities Region Deal so far. 4
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Growing Tay Cities Biomedical Cluster Project completed refurbishment of Wilson House. Perth Museum celebrated its official opening, marking a pivotal moment in the region's culture and tourism industry. 5G Digital Testbeds and cyberQuarter Project worked together and demonstrated how 5G drone technology could transform search and rescue missions in remote areas, such as the Angus Glens. The James Hutton Institute celebrated its official opening of the Advanced Plant Growth Centre and the International Barley Hub, bringing a world leading research facility in agriculture to the region. Pitlochry Festival Theatre completed the construction elements of the Project. 2,451 jobs created by Projects since Deal Signing. This equates to more than one third of the overall job commitment of the Deal. 5 Contents Up to the end of September 2024, £231.69m of funding has been approved for investment by the Tay Cities Region Joint Committee. This equates to more than two thirds of the Deal. Of this, £170.98m relates to individual Projects. £152.108m of Government £ investment released. £ The Tay Cities Region Deal enters Year 5 and has claimed over half of £300m funding allocated. £180.258m leverage has been secured by Projects within the Deal. This equates to more than 45% of the overall leverage commitment of the Deal. Tay Cities Region Deal - Annual Performance Report 2023 - 2024 Executive Summary
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Tay Cities Region Deal - Annual Performance Report 2023 - 2024 6 2,451 jobs have been created by Projects since Deal Signing. This equates to more than one third of the overall job commitment of the Deal. Discovery Point Transformed
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Tay Cities Region Deal - Annual Performance Report 2023 - 2024 7 The Tay Cities Region Deal Cities Region Deal Overview The Tay Cities Region Deal was signed on 17th December 2020 by the Tay Cities Region Partnership and both the UK and Scottish Governments. The Deal is a combined investment of £150m each from the Scottish and UK Governments over a 10-year period, to March 2030, with an opportunity to deliver all benefits over a 15-year period, by March 2035. The Tay Cities Region Deal1 continues to deliver in supporting business growth, developing innovative technologies, enhancing productivity, developing skills, and creating jobs. With the Deal now in Year 5, over half of the £300m Government Investment has been claimed, and the following benefits have been realised: £152.108m Government investment released; 2,451 new and construction jobs created, or jobs protected; and, £180.258m leverage secured for the region, of which £160.210m has been received. This has been achieved through continued strong partnership ambition, collaboration and drive. Governance The Tay Cities Region Deal partners work collaboratively with both the UK and Scottish Governments as well as regional partners, including representation from private and third sector organisations: Local Authorities – Angus Council, Dundee City Council, Fife Council and Perth & Kinross Council Higher Education and Further Education sector Business representatives Regional third sector interface bodies Scottish Enterprise Skills Development Scotland Tactran VisitScotland The Deal’s governance arrangements continue to enable decisions to be made in an open and transparent way for the Tay Cities region and consideration of wider issues including the oversight of the Regional Economic Strategy. The Partnership have been commended by both Governments at recent annual conversations for their well-established and collaborative governance. 1 www.taycities.co.uk/sites/default/files/tay_cities_deal_doc_feb_8.pdf
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Tay Cities Region Deal - Annual Performance Report 2023 - 2024 8 The Joint Committee is supported by a number of bodies which are summarised in the governance chart diagram on the Tay Cities Region Deal website2. More information on the governance structure and the Deal can be found in the Deal Document. Geographical Overview The map below shows the geographical area of the four Local Authorities within the Deal: Angus, Dundee City, Fife and Perth & Kinross. Only North-East Fife is included within the Deal, with the remainder of Fife within the Edinburgh and South-East City Region Deal. Diagram 1 National PMO Networking Group The Tay Cities Region Project Management Office (PMO) continues to lead and provide the secretariat for a National PMO Networking Group, which includes representation from Regional and Growth Deals from across the UK. The group aims to share best practice and exchange guidance, use the platform for presentations from various organisations, and utilise the knowledge of its members to start sub-groups specific to enhancing City Region and Growth Deals. 2 www.taycities.co.uk/sites/default/files/2024-10/TCRD%20Governance%20Structure_2.pdf Forf ar Pert h Dund ee St Andrew s Local Authority Areas Angus City of Dundee Fife Perth & Kinross Edinburgh & South East City Deal Glasg ow Edin urgh
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Tay Cities Region Deal - Annual Performance Report 2023 - 2024 9 Demonstrating the benefits of this national working group, the Programme Manager for the Inverness and Highland City Region Deal noted that: “Whilst most of the Deals across the UK are varied in how they are structured and in terms of their maturity, a drive and desire to successfully deliver is common to all the people in the various Deal PMOs. The PMO Networking Group brings together those people and provides a great forum for sharing knowledge and making really useful contacts – certainly from the Inverness & Highland City Region Deal, myself and colleagues value the network and continue to build good relationships across the Deals which has provided valuable insights and ideas to further our aims”. There have been a number of short and longer-life sub-groups established to date including the: Decarbonisation sub-group Benefits Realisation sub-group Subsidy Control sub-group Finance sub-group. The wider network and various sub-groups are a valuable source of information and present an opportunity to share knowledge and expertise. The Tay Cities PMO is presented as an exemplar by Governments for the sharing of best practice to other City Region and Growth Deals. The PMO Network has regular engagement with both Governments, other organisations and regional opportunities including: Scottish Government and UK Government attendance - including a discussion about Economic Dimension Development for City Region and City Growth Deals in November 2023 and engagement with all Deals regarding Programme reviews in September 2024. Green Book Training with the HM Treasury in August 2024. To date the PMO have worked with UKG to deliver HM Treasury Green Book training to 743 people involved in the Tay Cities Deal. PMO attendance at the Scottish Parliament in January 2024, discussing the benefits of the City Region and Growth Deals Carbon Guidance and methodology for the Deals, and wider economic drivers. Digital Office Scotland and CENSIS Attendance in February 2024 on the adoption of the Internet of Things.
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Tay Cities Region Deal - Annual Performance Report 2023 - 2024 10 The Deal is comprised of 1 Fund, 3 Programmes and 38 Projects. Within the Programmes and Fund, there will be additional Projects emerging as the Deal progresses. Life Sciences Biotechnology and Medical Technology: Growing the Tayside Biotech, Biomedical and Agritech Project
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Tay Cities Region Deal - Annual Performance Report 2023 - 2024 11 Development Programme The Deal This section of the Annual Performance Report summarises the Projects that have entered into the implementation or delivery stage following full Government and Joint Committee approval, up to and including September 2024. The Projects are categorised by Tay Cities Region Deal themes and are aligned to the Implementation Plan, with any updates to milestones and risks highlighted. Status of Fund, Programmes and Projects The Deal is currently comprised of 1 Fund, 3 Programmes and 38 Projects. Within the Programmes and Fund, there will be additional Projects emerging as the Deal progresses. Table 1 below shows an overview of the status of the Programmes, Fund and Projects up to the end of September 2024. Table 1: Status of Funds, Programmes and Projects up to end of September 2024 Programme/Project Location Stage An Empowered & Inclusive Tay Regional Skills & Employability Development Programme3 Regional Implement (Phase 1)/ Define (Phase 2) Skills Programme Manager Regional Implement Digital Skills (Phase 1) Regional Implement Life Sciences Biotechnology and Medical Technology: Growing the Tayside Biotech, Biomedical and Agritech Regional Implement Supporting SME Skills Regional Implement Digital Skills (Phase 2) Regional Define Regional Skills & Employability Hospitality Skills Regional Define Tay Cities Engineering Partnership Regional Implement Aviation Academy for Scotland Regional Define An Innovative, International Tay Growing the Tay Cities Biomedical Cluster Dundee Implement International Barley Hub Perth & Kinross Deliver Advanced Plant Growth Centre Perth & Kinross Deliver 3 There are a number of Phase 2 Regional Skills and Employability Development Programme Projects to be defined and delivered. These will be included in future Annual Performance Report updates, as and when they are agreed by Governments and the Partnership.
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Tay Cities Region Deal - Annual Performance Report 2023 - 2024 12 & Toursim Programme/Project Location Stage Angus Fund Angus Implement CASI Programme Angus Define Mercury Drone Port Angus Implement Angus Rural Mobility Hub Angus Define Zero Four Angus Define Low Carbon Housing Angus Define Angus Fund Connecting Montrose Angus Define cyberQuarter Dundee Implement Just Tech Dundee Define Perth Innovation Highway Perth & Kinross Define Studio Dundee Dundee Define Advanced Manufacturing Programme Regional Define Eden Campus Fife Implement Stretch Dome Simulator Fife Deliver Project Beacon Perth & Kinross Define Regional Culture & Tourism Investment Programme4 Regional Implement (Phase 1)/ Define (Phase 2) Hospitalfield Angus Implement Regional Culture Investment Discovery Point Transformed Dundee Implement Pitlochry Festival Theatre Perth & Kinross Implement Perth Museum Perth & Kinross Deliver Innerpeffray Library Perth & Kinross Define Crieff International Highland Centre Perth & Kinross Define Aero Space Kinross5 Perth & Kinross Implement A Connected Tay Rural Angus and Rural Perth & Kinross Highspeed Broadband Angus and Perth & Kinross Deliver 5G Digital Testbeds Regional Implement Broxden Low Carbon Travel Hubs Perth & Kinross Implement Perth Active Travel Hub Perth & Kinross Define Hydrogen Refuelling Station Perth & Kinross Define 4 There are a number of Phase 2 Regional Skills and Employability Development Programme Projects to be defined and delivered. These will be included in future Annual Performance Report updates, as and when they are agreed by Governments and the Partnership. 5 Aerospace Kinross currently has Joint Committee approval subject to conditions and is still in the feasibility stage. When the Project is in a position to proceed to delivery it will be added to a future Annual Performance Report.
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Tay Cities Region Deal - Annual Performance Report 2023 - 2024 13 Programme/Project Location Stage Dundee Airport Investment revenue Implement Dundee Airport Investment capital Dundee Define Perth Bus & Rail Interchange Perth & Kinross Define Stage No. Definition 1. Define Business case being developed, and not yet approved by Joint Committee. 2. Implement Business case has been approved by Joint Committee, and is being implemented. In a capital Project, this may be construction; for skills Projects this may be establishing/delivering a course. 3. Deliver Project is in place and monitoring and evaluation is in framework to assess if it is achieving its objectives. 4. Legacy Project has resulted in mainstreaming or improvements to business as usual (impact) that is generated beyond the funded period. Project Owner Events The Tay Cities PMO continues to support the Partnership, as well as the Fund, Programme and Projects by holding regular Project Owner events. These events allow: Projects to share their experience with other Project Owners, Networking between Project Owners, The PMO to provide updates on the Deal and any upcoming events, Q&A sessions with PMO and Project Owners. Project Progress The following information provides a snapshot of progress throughout the year and are shown by Tay Cities Region Deal theme, for the Programmes, Fund and Projects in delivery. This includes a description of the Programme, Fund and Projects, headline achievements, and where appropriate, upcoming milestones and a case study. The summaries also set out the funding awarded to each. The Projects which have received Full Business Case approval from Joint Committee since October 2023 are listed below and have been added to this years Annual Performance Report update: Life Sciences Biotechnology and Medical Technology: Growing the Tayside Biotech, Biomedical and Agritech Supporting SME Skills