The UK Government is set to invest £320 million in Glasgow and Aberdeen as national zones for advanced manufacturing and the energy transition, following the Chancellor’s spending review.
Glasgow, the largest supplier of small satellites in the world, with around 30 companies in the industry, will benefit from £160 million, with Aberdeen as a vital oil and gas hub for the UK, receiving the same to catalyse the green and digital economies.
The Glasgow site will be focused on advanced manufacturing, targeting innovation in the space and maritime fields and in semi-conductor production. It is expected to generate around £300 million of initial private investment and support up to 10,000 jobs in the region.
The North East ‘investment zone’ (IZ) will focus on green industries and the digital and tech sectors, building on the region’s existing strengths and playing a key role in the country’s transition away from oil and gas, which is expected to generate around £1.7 billion of private investment and support up to 18,000 jobs.
Deputy prime minister Angela Rayner said: “That’s why we have taken forward Scotland’s two investment zones. By building on the amazing strengths Glasgow and North East Scotland already possess, they will attract the investment and drive the growth that people deserve.
“Growing the economy to improve living standards is the number one priority of our Plan for Change, creating opportunities for communities across the UK.”
Deputy First Minister Kate Forbes said: “Investment Zones will play a role in attracting private investment, growing Scotland’s economy and creating jobs. They will help to maximise the impact of our world-class universities and colleges, leveraging our existing research and innovation strengths, and grasping emerging opportunities to support growth in the Glasgow city region and the North East.
“The Scottish Government is providing a package of non-domestic rates retention at the sites which can be used to further invest in the zones and their infrastructure.”
She said: “We have worked with the UK Government to tailor the investment zone model to align with Scotland’s economic strategy, supporting the development of clusters and driving innovation in key sectors such as net zero, advanced manufacturing and digital technologies.”
The investment zones are joint projects between the UK and Scottish governments and the Glasgow city region and North East Scotland regional economic partnerships.
Glasgow’s IZ is focused on key sites including the Advanced Manufacturing Innovation District Scotland (AMIDS) next to Glasgow Airport in Renfrewshire and the city’s two Innovation Districts, Glasgow Riverside Innovation District and Glasgow City Innovation District.
US-based ZeroAvia are developing the world’s first zero-emission engines for commercial aviation and will advance their operations with the creation of a Hydrogen Centre of Excellence and manufacturing facility within AMIDS.
And the North East IZ will be located in Aberdeen and Aberdeenshire, with key sites including the Energy Transition Zone in the city, strategically located by the Port of Aberdeen South Harbour expansion, and Peterhead – which will support emerging green industries with easy access to Peterhead Port.
