Just last week, we launched the UK Government’s £140 million local growth fund, which will help to deliver economic growth to five Scottish regions. Scotland will also benefit from around £700 million of other local and regional project funding over the next three years. In addition, as we pointed out in relation to the Budget, the UK Government have provided the Scottish Government with the largest block grant in the history of devolution.
I thank the Secretary of State for the announcement of £11 million of local growth funding for Ayrshire. Ayrshire boasts internationally successful businesses in the engineering, advanced manufacturing, aerospace, defence and energy sectors, and I have been working with my excellent Ayrshire colleagues and the Ayrshire chambers of commerce to ask businesses what more we can do to grow the economy. Does the Secretary of State agree that we must support Ayrshire’s most successful sectors and ensure this region plays its part in growing Scotland’s economy?
Absolutely. I welcome the work of the ambitious Ayrshire consultation, and pay generous tribute to the work that my hon. Friend is doing. When I was Trade Minister, I visited companies including Ecocel and GE Aerospace in Ayrshire, and saw for myself the extraordinary potential for growth-driving sectors such as advanced manufacturing. As part of the more than £200 million the UK Government are investing in Ayrshire, the local growth fund will provide flexible, targeted support to help unlock exactly that potential.
After years of increases to the cost of living, my Airdrie and Shotts constituents are understandably impatient for change, and want to see the benefits of economic growth in their communities and in their pockets. Can the Secretary of State provide further detail on how this Government are supporting the growth of local economies in North Lanarkshire, and what role does he see AI, advanced manufacturing and life sciences playing in that growth by helping to develop supply chain resilience locally?
Of course, North Lanarkshire has been at the heart of Scottish manufacturing for many decades. Since 2019, it has actually grown faster than the national average in Scotland, due to its highly skilled workforce and ambitious local development plans. I am delighted that large US companies such as CoreWeave have recognised that potential, with CoreWeave having invested £1.5 billion in North Lanarkshire’s growing AI infrastructure. I can assure my hon. Friend that North Lanarkshire has a strong advocate and supporter in the UK Government—we are determined to fulfil that potential.
Buses are hugely important to our communities and our transport network, so it is vital that Falkirk-based Alexander Dennis Ltd and its supply chain, including Dellner Glass in Consett in my constituency, are supported. It has taken the SNP First Minister over a year to recognise that. Can the Secretary of State set out how he is working with other Departments to ensure that jobs and the company not only survive, but thrive?
Of course, I warmly welcome the decision to keep Alexander Dennis’s Falkirk and Larbert sites operational. That will be a huge relief to the talented workforce, not just in those parts of Scotland, but at Dellner Glass and other parts of the supply chain. I recently met the president and managing director of Alexander Dennis, Paul Davies, to discuss its strategic plans and the growth of UK bus manufacturing, and I am also supporting the positive progress made by the Department for Transport’s UK bus manufacturing panel—the first of its kind—which brings industry leaders such as Alexander Dennis together with metro mayors to support manufacturing, boost regional economies and create jobs.
As chair of the international trade and investment all-party parliamentary group, I am pleased that we are running the power of place campaign to encourage colleagues to highlight incredible small businesses that are exporting out of their constituency. Does the Secretary of State agree that this initiative and others such as Brand Scotland are invaluable for showcasing the power of Scottish products in markets across the world, and will he meet me to explore the ways in which we can improve exports out of Scotland?
In my previous role as a Trade Minister, I was proud to promote world-class Scottish products from satellites to whisky. Since 2024, the Government have been working to extend those international trading benefits. For example, the UK-India trade agreement will boost the Scottish economy by an estimated £190 million a year. Both Brand Scotland and the power of place can help small businesses in Scotland and elsewhere to increase their global exports. I pay generous tribute to my hon. Friend and thank the international trade and investment all-party parliamentary group for its important work. I would be pleased to hear more from him about the work we can do together.
In November, I called for urgent intervention to support the Forth valley’s industrial economy. Since then, we have a £150 million deal to protect 500 jobs at Grangemouth’s ethylene plant, £14.5 million in the Budget to unlock hundreds of new jobs quicker at Grangemouth, such as those announced at MiAlgae, and £9.8 million of local growth funding announced at Forth Valley college last week, despite some nationalists moaning that the money should have been sent to St Andrew’s House rather than to Falkirk, Clackmannanshire and Stirling. What further steps will the Secretary of State be taking to support the vast economic potential of the Forth valley?
Just last week, I was with my hon. Friend in Falkirk announcing £9.8 million-worth of funding for the Forth valley region as part of the new local growth fund. Meanwhile, the UK Government are working hard to secure further investment for the Grangemouth site. Tomorrow, the Minister, my hon. Friend the Member for Midlothian (Kirsty McNeill), will be in Scotland signing a memorandum of understanding for the Forth green freeport, unlocking £25 million in capital funding to support economic growth in the region. That, frankly, is the difference that having a Labour Government with Scots at the heart can make to economies such as Falkirk’s.
Does the Secretary of State agree that yesterday’s SNP budget, which metes out another round of civic vandalism to local authority budgets, demonstrates a failure to understand that economic growth is built from the ground up and requires well-funded local authorities delivering schools, infrastructure and clean, safe communities? Does he also agree that Scotland needs a Labour Government at Holyrood, with the same ambition for growth being shown by this UK Labour Government, if it is to unlock its full economic potential?