Item 08 - Glasgow City Region City Deal - Update
West Dunbartonshire Council · 29 April 2026
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer (Regulatory and Regeneration) Council: 29 April 2026 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) Approves the request to remove the Eastern Access Road; and iii) . iii) Notes the update and 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 The Exxon project is progressing well on site and remains on programme. The Western under-bridge was successfully completed during the December 2025 disruptive possession and is a key milestone for the delivery of the project. 4.3 As with any large scale construction project on a brown field site there have been a number of challenges encountered during project delivery. While a number of these are the subject of active discussions regarding responsibility, it is now clear that there will be cost implications which have to be managed in order to keep the project within the agreed budget. To address this the Project Board have reviewed the project scope to identify any potential mitigation. ITEM 8
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Official 4.4 Following review the Project Board recommend the removal of the Eastern Access Road from the current scope. The total cost of this element is £1 million and the removal of this element will keep the project within the agreed budget. The construction of this element is programmed for commencement in May 2026 therefore if removed at this time there will be no adverse cost implication. The removal does not impact of the completion of the spine road and its ability to operate as a relief road, however the eastern element of the site may be less desirable for future development. 4.5 In recent months, there have been a number of funding initiatives announced by both UK and Scottish Governments aimed at growing the economy and jobs, and the Exxon Project Board continue to explore these and other external funding opportunities to deliver this element of the project. Updates will be provided to Council. Glasgow City Region - General Update 4.6 A Glasgow City Region Cabinet Meeting was held on 17 March. Items on the agenda included a report on Programme Management Office annual budget, proposed changes to the Clyde Metro Case for Investment Governance Arrangements, a report on Regional Empowerment, updates on the UK Shared Prosperity Fund and Local Growth Fund, and a Glasgow City Region Quarterly Performance Report. 4.7 The Draft Programme Management Office budget noted overall increase of £753,786 compared with 2025/26 which is attributed mostly to additional payroll costs as well as increased marketing budget. The increase will be covered by temporary loan interest earned on grant sums held by Glasgow City Council and member recharges should remain unchanged in 2026/27. 4.8 Updated governance arrangements for developing the Clyde Metro Case for Investment were agreed by the Cabinet. Glasgow City Region Cabinet becomes a Clyde Metro Project Sponsors, recognised as the ‘owners’ of the Case For Investment document and will be expected to have a lead role in supporting the local delivery of the Clyde Metro. The Chief Executives’ Group will provide executive support by coordinating Member Authority input, escalating unresolved issues, and ensuring each authority supplies the necessary resources and the Programme Steering Group will expand to include senior representatives from all eight Member Authorities. 4.9 To date, SPT’s role has been to lead the delivery of the Clyde Metro Case For Investment. Going forward, SPT will become the lead and accountable body for the entire Case for Investment stage, taking responsibility for all workstreams, programme management, staff, and procurement. This change also means City Deal funding will flow directly to SPT. The aim is to strengthen decision-making, manage dependencies, and keep the project on track for Case For Investment completion in 2027.
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Official 4.10 An update was provided on the regional devolution process. Recent announcements, including the First Minister’s commitment to new regional legislation, and the UK Government’s shift to funding via Regional Economic Partnerships - signal a strong move toward enhanced regional governance. These developments support Glasgow City Region’s long-standing aim to secure a more formalised, empowered regional role as well as securing fiscal tools and flexibilities that would support long-term investment within the region. 4.11 The Cabinet approved establishment of a suite of workstreams covering key policy areas (e.g., innovation, investment, infrastructure, planning, skills) alongside two joint workstreams with Edinburgh City Region focusing on governance and fiscal powers. These groups will over the next 12 months develop detailed proposals on the powers, responsibilities and delivery models Glasgow City Region seeks to secure through forthcoming legislation and funding reforms. All partners will be invited to participate in the workstreams, and further updates will be provided to the Cabinet. 4.12 UK Shared Prosperity Fund Quarter 3 Update report noted the Quarter 3 spend. It also highlighted that the costs may now relate to activity that takes place on or before the 30 September 2026 which is a 6-month extension to the previous spend eligibility deadline 4.13 An update on the on the new Local Growth Fund was provided, including budget allocations, policy intentions, and the proposed methodology for distributing both revenue and capital funding. Following the UK Government’s 2025 Spending Review, Scotland will receive approximately £76 million per year from 2026/27 to 2028/29 to support regional economic growth. This replaces the UK Shared Prosperity Fund There are four funding steams that make up the Local Growth Fund: Pride in Place Programme Phase 2 Pride in Place Impact Fund New Local Growth Fund Growth Mission Fund 4.14 Pride in Place Programme Phase 2, The Pride in Place Impact Fund and the Growth Mission Fund were all confirmed on, or before, the UK Government Autumn Budget Statement (26 November 2025) with the new Local Growth Fund allocations announced on Thursday 8 January 2026. Allocations have been determined at a Regional Economic Partnership level, rather than individual Local Authority, with Glasgow City Region due to receive £60.9 million across the three-year funding period which amounts to 43.5% of the overall Scottish new Local Growth Fund allocation. The allocations are noted in the Table below.
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Official 2026/27 2027/28 2028/29 Total Revenue £6,900,000 £6,700,000 £4,800,000 £18,400,00 Capital £15,800,000 £14,800,000 £11,900,000 £42,500,00 Total £22,700,000 £21,500,000 £16,700,000 £60,900,00 4.15 The Local Growth Fund has a different policy focus from previous funds, emphasising economic growth through infrastructure, business support, and skills development. It is not considered a successor to UK Shared Prosperity Fund. However, due to widespread reliance on UK Shared Prosperity Fund revenue for local authority services, the UK Government has agreed to a transition year in 2026/27. 4.16 The Cabinet approved that for 2026/27 FY only, revenue allocations will follow the 2025/26 methodology (for UK Shared Prosperity Fund), enabling councils to maintain continuity in business support and employability programmes. West Dunbartonshire will receive £400,200, which is just over 5.80% of the region’s £6.9m revenue budget for that year. This is a significant reduction in comparison to the 2025/26 UK Shared Prosperity Fund revenue allocation for West Dunbartonshire which was in the region of £1.2 million. 4.17 Capital funding is expected to focus exclusively on regional-scale projects that deliver meaningful economic outcomes Increased development-ready land and sites Increased housing supply Improved utilities and energy upgrades Increased physical connectivity Increased digital connectivity 4.18 The Glasgow City Region Programme Management Office will now work with partners to prepare a “Credible Plan” which sets out proposed investments for the full funding period. This plan will require approval by the Chief Executives’ Group and the Cabinet before submission to the UK Government. 4.19 Glasgow City Region Quarterly Performance Report (Q3 2025/26) was presented, including updates on the Regional Economic Strategy Action Plan; the City Deal Programme; and the City Region Team workplan. The City Deal Programme continues to perform strongly, 21 projects reporting Green status and no projects in Red or Amber. Major construction activity is advancing across multiple councils, including significant progress on Westerhill Development Road, Bishopbriggs Town Centre, Balgray Station, Eurocentral Access, East Kilbride Town Centre and the Exxon site. Formal approval of the Investment Zone Government 5-stage Gateway Process was received on 23rd December 2025. Individual project Business Cases are now being developed for approval by Glasgow City Region Chief Executives’ Group
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Official 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 £14.3 million. Overall expenditure to date is £25.7 million. 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. Equalities Impact Assessment 8.1 Previously completed. It is not considered that the proposed change to the scope will have an impact on any matter addressed in an Equalities Impact Assessment. 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: 29th April 2026
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Official Person to Contact: Alan Douglas Alan.Douglas@west-dunbarton.gov.uk Appendix: None Background Papers: 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