Tory government minister Michael Gove has been told to find extra support for Dundee after the city was snubbed for lucrative tax-breaks and £80 million over five years.
Dundee City Council leader John Alexander went to Edinburgh on Friday one day after the decision was confirmed to grant Aberdeen and Glasgow “investment zone” status.
We revealed how Dundee leaders were furious yesterday at the rejection, which followed talks between Scottish and UK government figures.
“It’s clearly unacceptable that Dundee, a city that is trying to make real inroads into poverty and enhance the economy of the city, has missed out again,” Mr Alexander told The Courier.
“First Greenport status, now investment zones and I’m hoping that there is no third.”
Mr Alexander was in the capital on the same day Mr Gove was addressing council leaders.
Dundee and Aberdeen were dealt a blow last year when freeport status – which comes with big customs and tax incentives – went to two bids in the Highlands and around the the Forth.
‘Disappointment’
Mr Alexander is now in difficult conversations with SNP colleagues in Dundee who were involved in the latest disappointment.
Deputy First Minister Shona Robison, a Dundee MSP, met Mr Gove recently. First Minister Humza Yousaf is also based in Dundee, despite representing a Glasgow constituency.
“I had the opportunity to raise this directly with Michael Gove today and I am seeking a roundtable with both governments to explore options for the city,” Mr Alexander said.
“We are a city which has a reality and context around poverty and economic decline over decades. There is only so much that we, as a council, can do without Government support. The time has come for national government to step up and work with us to diversify our economy to ensure economic growth and job creation is delivers our approach on reducing poverty.”
Mr Gove said the decision is a “historic milestone” on Friday morning.
“I am very appreciative of the constructive approach the First Minister and Deputy First Minister have shown in the meetings I have had with them in recent weeks,” he said.“We all have a shared ambition to work together to see all parts of Scotland thrive and today’s agreement builds on our successful rollout of Green Freeports in Scotland earlier this year.
“Both Aberdeen and Glasgow, and their surrounding areas, have been at the very heart of the UK’s economic success for generations.”
What are investment zones?
Investment zones are part of the UK Government’s “levelling up” plan to target regions of the country for development and support in jobs and skills.
Tax incentives could include reduced Land and Buildings Transaction Tax, business rates relief, capital allowance and National Insurance contributions.
Dundee put forward a bid drawing attention to its world-class university research, high-tech skills base, life sciences and digital expertise – and the need to improve the region’s economy in general.
It was proposed to take in Dundee and north-east Fife, including St Andrews.
Investment zones were scored by governments but also discussed more generally by administrations before decisions were made.
They are not to be confused with Freeports, which offer wider customs and tax incentives and were awarded to bids last year at Cromarty and Forth ports areas.