Item 9 - Glasgow City Region City Deal Update
West Dunbartonshire Council · 17 December 2025
Back to West Dunbartonshire Council — 17 December 2025 and its agenda
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer (Regulatory and Regeneration) Council: 17 December 2025 Subject: Glasgow City Region City Deal - Update 1. Purpose 1.1 To provide an update on the Exxon Infrastructure Project, and to report on matters being discussed by Glasgow City Region. 2. Recommendations 2.1 It is recommended that Council: i) Notes the update on the Exxon Infrastructure Project. ii) Notes the progress of the Glasgow City Region programme. 3. Background 3.1 The Glasgow City Region City Deal Infrastructure programme equates to £1.13bn of investment during period 2015-2035. Projects are progressing and have reached various stages of development. 4. Main Issues 4.1 This report provides information on City Region progress and includes the latest position on Exxon site infrastructure project development. Exxon Infrastructure Project 4.2 Since reporting to Council on 29 October, the main construction works have continued to progress well and remain on programme. Quarterly newsletters continue to be prepared and shared on the Council’s website with October’s edition now available. 4.3 The western under-bridge pre-construction work started in late April 2025 and is on target for the installation in December 2025. The western underpass structure is now fully constructed and ready for installation. Network Rail now confirmed that the earliest alternative date to carry out the eastern overbridge deck demolition in the 22 November 2026, and this date was accepted by the Council. This date does introduce a number of risks as the work is then carried out during winter, when working conditions are more challenging and ITEM 9
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there is further planned evening works required to safely rebuild the bridge deck. The overall programme completion is not affected at this stage but will need to be closely monitored. 4.4 The marketing approach for the site continues to be progressed and soft market testing now underway, the outcome of which will help inform the Project Board of the best approach to take. A report on this will be brought to a future meeting.’ . Glasgow City Region - General Update 4.5 A Glasgow City Region (GCR) Cabinet Meeting was held on 18 November. Items on the agenda included a GCR Investment Zone Programme Assurance Framework, GCR Investment Zone - Strategic Outline Programme Business Case (SOPBC), Clyde Mission Decarbonization Fund and a 6 monthly update on the UK Shared Prosperity Fund. 4.6 The paper on the Glasgow City Region Investment Zone Up-date confirmed that the Investment Zone is progressing through the Government five stage Gateway approval process. A small number of additional points of clarification have been sought in relation to Gateway 4 and these were submitted to Government on Monday 27 October. Approval of Gateway 4, including the draft budget and Non-Domestic Rates Retention sites is expected in the coming weeks. 4.7 The final formal Gateway stage of the Investment Zone process, Gateway 5, is focused on operational delivery, risk and evaluation. Gateway 5 was submitted to UK and Scottish Government, Friday 7 November and feedback is awaited. 4.8 To support the governance and management of the GCR Investment Zone programme an Assurance Framework has been developed, with input from Finance and Audit. Glasgow City Council is considered as the Accountable Body for the administration of the grant. It is expected that the Assurance Framework will be augmented by a Grant Agreement following the finalisation of the Memorandum of Understanding with Scottish Government. 4.9 The Cabinet approved the Strategic Outline Programme Business Case for the GCR IZ Programme which means that individual GCR Investment Zone short-listed projects are also considered ‘Approved’ and will be able to access the grant funding which will support progress towards Outline of Full business Case Stage. This includes the Scottish Marine Technology Park (SMTP) 4.10 The Strategic Outline Programme Business Case provides the strategic programme context for the Investment Zone, which the individual short-listed project Business Cases will then follow. In addition, it includes a request for £2.131m grant funding for a number of GCR Investment Zone projects, in advance of approval of an individual Outline or Full Business Cases.
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4.11 A proposed Clyde Mission Heat Decarbonisation Fund design and a grant budget envelope for financial year 2026/27 of £5 million (subject to Scottish Government confirmation) were approved by the Cabinet. 4.12 Clyde Mission Heat Decarbonisation Fund is a targeted investment programme being established by Glasgow City Region (GCR). The Scottish Government is funding this fund under the Clyde Mission programme. Its purpose is to accelerate the replacement of fossil fuel heating systems with low and zero carbon alternatives across the Clyde Mission corridor, in line with local, regional and national policy objectives. The aims of the Fund are to: Stimulate capital funding for high impact heat decarbonisation projects in the Clyde Mission corridor. Provide necessary funding to support district heat decarbonisation projects in both the public and private sectors, ensuring economic viability for installation and operational phases. Offer targeted supplementary funding to bridge funding gaps and enhance the viability of eligible projects. 4.13 The fund is open to local authorities, other public sector organisations, and incorporated legal entities (e.g. limited companies, Community Interest Companies) within the Clyde Mission Corridor. 4.14 An update on GCR Local Innovation Partnership Fund was provided to the Cabinet. The funding package available to the Region has been increased to a total of £50 million. Health and Life Sciences cluster supported by complementary Digital and Enabling Technology activity will the focus for the Fund. The Region will act as ‘Lead Bidder’ for the funding. 4.15 An update on the future of UK Shared Prosperity Fund was provided. From 2026/2027 United Kingdom Government will provide targeted, long-term funding to support local growth across the UK, completing the transition from the UK Shared Prosperity Fund. The new fund will be called Local Growth Fund and a webinar for Local Authorities was held on 5 November. For the next three years, this funding across the four new programmes will be at the same overall level in cash terms as under the UK Shared Prosperity Fund in the current year. For Scotland this is approx. £76m p.a., and approx. £238m over the period up to FY 28-29). There are four funding steams that make up the Local Growth Fund: Pride in Place Programme (PIPP) Phase 2 Pride in Place Impact Fund (PIPIF) New Local Growth Fund Growth Mission Fund 4.16 The first three funding streams are led jointly by Ministry of Housing, Communities and Local Government (MHCLG) and Scotland Office, with the Growth Mission Fund led by the Department of Trade (DBT).
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4.17 In practice, with the funding of £76m per annum and the UKG commitment to PIPP and PIPIF around £42m of flexible funding will remain. With an expectation of around 10-15% allocated to the Growth Mission Fund this will leave around £36m for the Local Growth Fund. 4.18 The majority of the new Local Growth Fund would be capital, however the split has not been confirmed. Maximum revenue allocation to the eight local authorities in GCR for employability, business support, third sector etc will be around £7.3m a year, however in reality it is likely to be lower. This is significantly lower than £33m in 2024/2025 and £22.6m in the current financial year. The UK Autumn Budget will be announced on Wednesday 26 November 2025 and further clarification on the future funding landscape is expected at this point. 4.19 Work is ongoing to model possible impacts of this reduction in funding on both direct staffing reductions and the levels of outputs and outcomes. 4.20 On 28th November the First Minister announced that the Scottish Government will introduce new legislation in the next Parliament to allow Glasgow City Region to be established as legal entity for the Glasgow City Region area. It is anticipated that this will provide the foundation for a devolution deal which will open the door to further funding and powers targeted at growing the economy. 4.21 At present it is unclear what the impact will be on the powers and remit of West Dunbartonshire Council itself, however similar initiatives in England (Greater Manchester and West Midlands) have permitted significant growth and as the thrust of the proposal is to bring power closer to the City Region authorities the initiative has been broadly welcomed. Further updates will be brought to Council as proposals are developed. 5. People Implications 5.1 There are several senior officers involved in the Glasgow City Region wider programme as noted at City Region Update paper at Council on 26 August 2021. 6. Financial Implications 6.1 Spend to date on the Exxon Infrastructure Project for financial year 25/26 is £9,037,168. Overall expenditure to date is £20.405M 7. Risk Analysis 7.1 There are several project risks associated with the development at the Exxon project site, and these are contained within the project risk register and updated by the Project Board on a regular basis. The Project Board is made up of senior officers from all key services. 8. 9. 8.0 Equalities Impact Assessment
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10. 11. 8.1 Previously completed. No further Assessment is needed at this stage. 9. Consultation 9.1 Consultation with all key stakeholders is progressing as we continue to work as part of the Glasgow City Region. 10 Strategic Assessment 10.1 At its meeting on 26 October 2022, the Council agreed that one of its main strategic priorities for the Strategic Plan 2022 - 2027 is ‘A Strong local economy and improved employment opportunities’. 10.2 The proposals within this report are specifically designed to deliver on this priority. Alan Douglas Chief Officer: Regulatory and Regeneration Date: 4th December 2025 Person to Contact: Alan Douglas Alan.Douglas@west-dunbarton.gov.uk Appendix: None Background Papers: UK Shared Prosperity Fund Report to Housing and Communities Committee 22 August 2022 Glasgow City Region City Deal- Council 13 August 2014. “City Deal Initiative” Clyde Valley Investment Fund-Council 30 April 2014 (Memorandum of Understanding). Clyde Valley Community Planning Partnership – City Deal Initiative – Council 28 August 2013. Wards Affected: All