Item 9 - Glasgow City Region City Deal - Update
West Dunbartonshire Council · 18 December 2024
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WEST DUNBARTONSHIRE COUNCIL Report by Chief Officer (Regeneration and Regulatory) Council: 18 December 2024 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 from Strategic, Outline and Full Business Case stages of approval. 3.2 At the meeting of Council on 30 October 2024, Council heard the factors influencing cost increases for the Exxon Infrastructure Project and approved £0.8m of additional capital costs to deliver the project with a reduced scope while maintaining significant economic benefit. 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 30 October, the construction agreement with Balfour Beatty has been signed, and their programme has been confirmed. Enabling works have commenced, and the main construction contract is programmed to start on 27 January 2025. 4.3 A Change Control Request that seeks approval for the variation in project cost and scope has been submitted to Glasgow City Region Programme Management Office and will be considered by the next City Region Cabinet. ITEM 9
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City Region Update 4.4 A Glasgow City Region Cabinet Meeting was held on 5 November. Items on the agenda included the Economic Briefing following the UK Government Budget Statement; a progress update on Clyde Metro; an update on Shared Prosperity Fund; a report on Making Glasgow a Living Wage Place; a report the Community Benefits Hub; and a report on Reprogramming and Programme Prioritisation Appraisal. Cabinet also considered and approved Change Control Requests from Glasgow City, East Dunbartonshire, South Lanarkshire and East Renfrewshire Councils. 4.5 The Economic Briefing is available on the Glasgow City Region website by following this link - October Economic Briefing i The briefing draws attention to the challenges in the City Region in aligning workforce skills with industry needs, and asserts that improving educational outcomes and vocational training will bridge this gap, especially in sectors like Advanced Manufacturing and Precision Engineering, which are increasingly reliant on specialised technical skills. The City Region’s Future Skills Programme and Innovation Action Plan are intended to build a resilient and innovative workforce, and address economic disparities and skills gaps across the Region. 4.6 The report to Cabinet on Clyde Metro set out the governance, consultation and resourcing of the Case for Investment. Consultations have been taking place with Member Authorities on the Draft Option Development and Case for Change, which are early stages in the Case for Investment. A meeting was held in October with Council officers and the Clyde Metro team. Discussion points included the extent of the metro in West Dunbartonshire and the first mile/last mile improvements that would be required to improve access to employment and education opportunities for all West Dunbartonshire communities. Officers had requested that the Exxon site and other key economic development hubs are considered, and these are now included within the options development work. Officers have emphasised the important of integration of transport modes, as well as active travel and public realm improvements for the connecting nodes not solely at metro linkages. 4.7 The Cabinet report on UK Shared Prosperity Fund provided an update on spend to date and provided information on the proposed programme extension in 2025/26. The Chancellor confirmed that UK Shared Prosperity Fund will continue for a Year 4 (25/26) but with a budget reduction of approximately 40%. In the existing Shared Prosperity Fund Years 1-3 programme, there had been a requirement for all local authorities to earmark part of their allocation meet the costs of the national adult numeracy programme, Multiply. While some details still have to be confirmed, it has been reported that the requirement to meet the costs of Multiply will not continue. Nor is there anticipated to be a capital component to the allocation. With Multiply and capital projects deducted from West Dunbartonshire’s potential allocation, it is hoped that employability and business support services can be sustained to a similar level during 2025/26. Further reports will be brought to Council as details are confirmed.
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4.8 The Reprogramming Report provided proposals on the allocation of the funds to be released from the Glasgow Airport Access Project to existing City Deal projects and to one new regional project. Half the available decommitted funds will be allocated to Member Authorities’ City Deal projects to mitigate inflation, and at the request of UK and Scottish Government, half the funds to be invested in a new regional project. Having heard the outcome of the evaluation of the four Expressions of Interest received for the new regional project, Cabinet approved a recommendation to select the Enabling and Delivering Commercial Space Project as the preferred expression of interest. Final approval by UK and Scottish Governments to all reprogrammed funds is expected in early 2025. Three expressions of interest have been submitted by the Council to Glasgow City Region for Delivering and Enabling Commercial Space across the authority. Two of these expressions are for new build commercial units in Alexandria and Clydebank and a further expression for refurbishment within Dumbarton. If successful this will deliver new/refurbished commercial units to a net zero standard and contribute to a more sustainable, resilient and commercial estate. 4.9 The next stages of the development of the Glasgow City Region Investment Zone will be discussed at the February Cabinet meeting. 5 People Implications 5.1 There are several senior officers involved in the Glasgow City Region wider programme as identified at City Region Update paper at Council on 26 August 2021. 6. Financial Implications 6.1 Spend this financial year to date on the Exxon project is £1.7M. Overall spend is £8.5M 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. 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
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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: Regulation and Regeneration Date: 18 December 2024 Person to Contact: Gillian McNamara gillian.mcnamara@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 i https://glasgowcityregion.co.uk/economic-briefing-oct-2024/