Policy actions  3 of 5

Regional Growth Deals

Regional Growth Deals, like the City Region Deals, are agreements between the Scottish Government, the UK Government and local government designed to bring about long-term strategic approaches to improving regional economies. Growth deals are delivered by regional partnerships led by authorities working with the private sector, education and skills providers, and our enterprise and skills agencies. The aim of these collaborations is to drive inclusive and sustainable economic growth.

We have now delivered on our commitment to achieve 100% coverage of Scotland. Every region has a commitment to an agreed level of investment.

Current deals

Ayrshire Growth Deal

The Ayrshire Growth Deal was signed on November 2020 committing £103 million investment from both the Scottish Government and the UK Government. 

Regional partners will contribute an additional £45.5 million, bringing total investment to £251.5 million to deliver inclusive growth across Ayrshire. The deal has the potential to create over 7,000 new jobs and unlock £300 million of further investment from the private sector.

Scottish Government investment includes £40 million for an economic infrastructure programme which includes innovative projects around engineering, manufacturing and digital automation as well as £30 million for an Aerospace and space programme and £18.5 million for tourism and regeneration.

The delivery of themes will be framed through a community wealth building approach that harnesses assets, resources, community strength and relationships within Ayrshire to deliver improved outcomes for communities.

Borderlands Inclusive Growth Deal 

The Borderlands Partnership promotes inclusive economic growth in the South of Scotland and North of England. It involves five local authorities working together. They are:

  • Dumfries and Galloway
  • Scottish Borders
  • Carlisle City
  • Cumbria
  • Northumberland

The Borderlands Inclusive Growth Deal aims to boost economic growth across the region through an integrated collection of projects and programmes designed around local needs and priorities. The Borderlands partners (further information link) have identified four priority themes each with inclusive, sustainable growth at their core.

  • enabling infrastructure
  • improving places
  • supporting business
  • innovation and skills
  • encouraging green growth

The deal is jointly funded by Scottish and UK Governments. It will provide up to £350 million in investment for the region over the next 10 to 15 years. This includes £85 million from the Scottish Government and £65 million from the UK Government for Scotland totalling £150 million. There is a further £200 million available for English components. Together with local partner investment of £100 million the total value of deal investment will be £450 million.

The Borderlands Inclusive Growth Deal (PDF) was signed on 18 March 2021and was put into action. Regional partners have estimated that this uniquely cross-border Deal will deliver an additional 5,500 job opportunities across the area, while also generating around £1.1 billion for the UK economy. 

Moray Growth Deal

In December 2021, we signed the Full Deal Agreement for the Moray Growth Deal with the UK Government and Moray CouncilThe contribution of £32.5 million by each of the Scottish and UK Governments will lever a further £35.8 million from regional partners, together delivering an investment into inclusive economic growth worth over £100 million over the next 10 years. The deal will attract and retain young people and families in Moray, create high-quality jobs in existing sectors and support diversification into new high-value areas, generate opportunities for future community prosperity, and address inequalities such as the gender pay gap.

The projects being supported through this deal are significant and strategic. £12.7 million will boost the region’s tourism offer and improve its cultural facilities, £4 million will provide more efficient and accessible green bus services tailored to rural needs, £2 million will help develop a centre for manufacturing and innovation that will enable businesses in sectors like space and aerospace, food and drink and other manufacturing areas to improve production, £5 million will create a minimum of 300 affordable homes and help local people to get onto the property ladder, £3.5 million will enable more young people, especially girls, to forge their future careers in STEM areas and £5.3 million will create a business and enterprise hub to enhance business support and facilities, encouraging new start-ups, and upscaling existing micro businesses to develop Moray’s rural economy.

Moray partners anticipate that this will directly and indirectly create over 3,500 jobs across a wide range of sectors as part of growth deal project delivery, increasing the value of the Moray economy by £82 million. The Moray Growth Deal partners are now working to develop business cases for each project.

Argyll and Bute Growth Deal

In October 2019 the Scottish and UK Governments each committed investment of up to £25 million in the Argyll and Bute Rural Growth Deal. This investment will support a range of projects designed to drive inclusive and sustainable economic growth throughout Argyll and Bute over a ten year period. 

Argyll and Bute partners have identified priority themes that they consider will have a transformative effect on the regional economy. The priority themes are: aquaculture, marine tourism, housing, skills, energy, digital connectivity, and innovation.

Deal investment will focus on connecting Argyll and Bute's high value business sectors to national and international business markets. This will attract additional skills, residents, visitors and businesses and grow benefit from the area's natural assets.

We signed the heads of terms agreement on 11 February 2021, highlighting specific projects to be funded. Argyll and Bute Council and partners have committed to a minimum of £20 million, bringing the total investment package to £70 million.

Falkirk Growth Deal

We announced a £40 million investment over ten years in the Falkirk Growth Deal in July 2020. In addition to Growth Deal investment, we have decided to invest an additional £10 million in Falkirk for green recovery projects, bringing total investment to £50 million. The Falkirk Growth Deal will seek to develop Falkirk’s ambitions for inclusive economic growth, including the opportunities unlocked from Grangemouth’s national significance as Scotland’s largest industrial site. We will continue to work with Falkirk, to agree Heads of Terms, setting out the specific projects to be funded by the deal, which will help to unlock investment and drive inclusive growth across the area.

Islands Growth Deal

On 20 January 2023 we signed the Full Deal Agreement for the Islands Growth Deal with the UK Government, Orkney Islands Council, Shetland Islands Council and Comhairle nan Eilean Siar. This Deal committed a £50 million investment from each of the Scottish and UK Governments to sustainable, inclusive economic growth across Orkney, Shetland and the Outer Hebrides. 

The Deal will support the priority themes identified by the Islands Growth Deal partners:

  • leading the way to a low carbon future
  • supporting growth and future industries
  • creating thriving, sustainable communities

This investment will lever a further £293 million from regional partners to deliver a Deal worth almost £400 million over the next 10 years.  

The 16 projects and programmes included in the Deal span a number of areas including:

  • low carbon
  • ports infrastructure
  • housing
  • skills
  • sustainable tourism
  • creative industries
  • space industries
  • food and drink
  • business innovation

The significant investment by the Scottish Government in 13 of those projects and programmes will be delivered as follows:

  • £16 million to support three projects in the Low Carbon theme, which will contribute to our net-zero commitments by supporting energy transition, delivering port infrastructure for decommissioning, and piloting decarbonisation in an island context
  • £15.5 million to support six projects in the Growth and Future Industries theme, through development of significant Island tourism and cultural assets, and innovation in key Space, Food and Drink and Creative Industries sectors
  • £18.5 million to support four projects in the Thriving Sustainable Communities theme, through expansion of existing learning facilities, sustainable housing provision, and investment in a skills programme targeting key sectors including decarbonisation and renewable energy

Island Deal partners anticipate the Deal will directly deliver up to 1,300 new jobs, aimed at retaining and attracting young people to address demographic challenges in the islands, and support the islands to be among the first places in the UK to achieve net zero. It will create the foundation for an innovation-focused recovery from the COVID-19 pandemic, and showcase the islands’ outstanding natural environment, heritage, culture and creativity to the world.

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