Glasgow City Region Economy

I beg to move,

That this House has considered Government support for the Glasgow city region economy.

It is a pleasure to serve with you chairing, Ms Jardine. The Glasgow city region is at the heart of the Scottish economy and is a fundamental pillar of the larger UK economy. Home to 1.85 million people, across eight local authority areas, the Glasgow city region accounts for around a third of Scotland’s employment and economic output. Shipbuilding on the Clyde; world-leading university research and spin-offs; the largest production of miniature satellites in Europe; one of the largest financial sectors in the UK outside London; an established and growing advanced manufacturing base; and a dynamic and thriving cultural sector are integral parts of the city region’s economy.

This is a city region that includes UNESCO City of Music status for Glasgow, and playing host to COP26 in 2021 and the Commonwealth games in 2014, to be hosted again in Glasgow this summer. That all paints a picture of the Glasgow city region as a major economic and cultural success, but it is still held back by historical challenges. Its history of deindustrialisation has left deep-rooted issues of poverty and inequality that are still being grappled with today in many communities. The region has one of the highest percentages of people with no formal education, while also having one of the highest percentages of people with higher-level qualifications or more.

Parts of the region have some of the highest deprivation in the UK, along with some of the highest drug deaths in Europe, although the city region also contains some of the wealthiest areas of Scotland. That gets to the crux of the matter. Support for the Glasgow city region economy must be judged not only by headline growth figures but by whether the benefits reach all communities, particularly those who have waited longest for change.

I commend the hon. Member for bringing this forward. I spoke to him beforehand about city region deals recognising the situation in Glasgow and my constituency, yet this work has only just begun. Does he agree that sustained funding has to be available to local councils to build on those foundational deals? The funding needs to be adequate to make a difference, not just in Glasgow but in Newtownards.

I thank the hon. Member for that intervention. I agree and will go on in my speech to talk about how the work of the city deals needs to be developed further. Those structures and activities need to be built on to ensure we get the most from that initial interest to develop it further.

The Glasgow city region economy has seen real investment from the UK Labour Government but much more can be done. With greater devolved powers over areas such as infrastructure, skills, investment and public health, the region will be better placed to shape solutions around the needs of its communities. That would not be devolution for the sake of it. Greater local autonomy can help reduce inequality, improve health outcomes and create new jobs and opportunities across the region.

As the city region is right now, I welcome the significant investment that the UK Labour Government are already delivering. The new local growth fund, combined with the Pride in Place programmes, is set to deliver nearly £94 million in investment over the next three years. The combination of those funds delivers long-term infrastructure and renewal. That approach will help the Glasgow city region to invest in long-term renewal, an ambition that needs to be matched by sustained adequate local government funding from the Scottish Government.

My hon. Friend is making an excellent speech and an important contribution. We have seen in other UK cities the difference that city region mayors can make, whether in Manchester or in Liverpool and whether on bus franchising or attracting investment. Does he agree that one of the things Glasgow needs is greater devolution from Holyrood to our city to help to attract investment?

Yes, I agree that we need devolution of power from Holyrood. One of the ironies of the devolution period in Scotland is that although powers have been devolved from the UK to Scotland, power has been hoarded in the Scottish Parliament and Scottish Government and not devolved to local government and local communities.

The UK Labour Government’s investment is not a substitute for sound local government funding. It is targeted, strategic funding designed to deliver the transformational projects that drive growth, create better jobs and build more prosperous communities. That investment reflects real ambition for the city region and is a fundamentally different offer to the Scottish Government’s short-sighted approach.

While the Scottish Government neglect the Glasgow city region, this Labour Government have been representing its interests in our trade abroad. The £10 billion defence deal with Norway has secured thousands of jobs at shipyards on the Clyde while also supporting many small and medium-sized UK and Scottish businesses in the supply chain. This Labour Government are supporting skilled jobs and opportunities in our city region communities that need them.

The UK Government are not supporting only traditional industries such as shipbuilding; they are also supporting the region’s future technology industries. I recently visited the University of Glasgow-based Responsible Electronics and Circular Technologies programme, which was established in my constituency in 2024 with more than £6 million of UK Government funding. REACT brings together industry and academia to design sustainable solutions for the electronics sector. Projects like that create high skilled jobs, strengthen supply chains and ensure that Glasgow city region remains at the forefront of future industrial development.

With that dynamic and growing economy in the region, it is clear why devolving power and funding to the city region would help industry, businesses and communities. It would allow policies to be better shaped to serve communities where these investments are happening. Already, the Glasgow city region cabinet, a unique governance structure established to oversee the Glasgow city deal that brings together the leaders of the local authorities, helps to deliver these types of regional programmes. However, that governance structure was created for a particular purpose: to oversee a significant but limited city deal programme. It needs to be transformed to meet the new reality and the ambition of the region shown by recent UK Government investment.

One in eight local authorities in the Glasgow city region is in my constituency. The Clyde is more than just Glasgow; it is the towns and areas up and down both sides of the Clyde. Does my hon. Friend agree that UK Government funding, not least the £60 million local growth fund, has the potential to unlock two sites in my West Dunbartonshire constituency: the former Exxon site and the Carless site? Both have the potential to create thousands of well paid, highly skilled jobs in West Dunbartonshire.

I thank my hon. Friend for his customarily well versed arguments for his constituency and the skills, developments and opportunities there. It is true that when we talk about the city region we are talking about not just the city itself but all parts of the city and the surrounding region. The impact of every £1 of investment could go further. When funding is channelled through empowered regional structures, with engagement, accountability and governance systems providing tailored local policies, it has a multiplier effect on everything it delivers. That means delivering for not just the wealthiest parts of the city but those communities that are most in need of support in all parts of the city region, within the city boundary and beyond.

My constituents in Glasgow North, along with people in the rest of the region, deserve high-quality affordable homes, an integrated transport network and good jobs, which an empowered city region can help deliver. I welcome the Minister’s reflections on what steps the UK Government plan to take to support the Glasgow city region’s economic ambitions. I also welcome any further reflections on what the UK Government can do to help accelerate the transfer of powers to the city region.

The Glasgow city region is a major economic and cultural success, but it is still held back by historical challenges. With the right powers behind it, with sustained local authority funding and with the UK’s Government’s investment, it could go much further in delivering improved health, good housing and rewarding, well paid jobs for our communities. The test will be how it delivers for all our communities, and for all in our communities, so that they can not only survive or live but truly flourish.

It is a real pleasure to serve under your chairmanship, Ms Jardine. I warmly congratulate my hon. Friend the Member for Glasgow North (Martin Rhodes) on securing this vital debate, and on everything he does to represent one of the greatest parts of one of the world’s finest cities. Whether through the revival and modernisation of heavy industries such as shipbuilding on our beloved Clyde, or future-facing industries like satellites and life sciences, this region is truly stepping forward to lead globally.

The Glasgow city region’s importance to the Scottish and UK economies cannot be overstated—the region is quite simply a powerhouse. It encompasses some of Scotland’s most vibrant local authorities, thousands of distinct enterprises and more than 1 million workers. With more than £870 million invested into the region by the UK Government over 10 years, its future is looking even brighter, but to empower this region to reach its full potential we simply have to do things differently. To do that, we are actively moving away from the short-term, fragmented funded priorities that have held us back in the past. Instead, we are taking a targeted, long-term approach that puts power back where it belongs: in the hands of communities and regional leaders who know their streets and economies best.

I want to share exactly how we are working to supercharge the Glasgow city region, secure high-quality jobs and restore pride in local places. I will begin by highlighting the immense success of the £1 billion Glasgow city region deal, which has delivered foundational benefits through its first decade. That 20-year agreement stands as one of the largest such deals in the whole UK. With more than half a billion pounds of investment from the UK Government, it is set to deliver up to 29,000 jobs over its lifetime.

To date, the deal’s infrastructure programme has completely reshaped the local landscape, delivering iconic new connections across the Clyde. It has also breathed life into the city’s most important public spaces, including the Canal and North Gateway project, which has been transformational for communities in my hon. Friend’s constituency, creating better connections to the city centre and upgrading their public spaces. Further, that deal has leveraged over £800 million in additional private and commercial investment since its inception in 2014, showcasing how effective Government investment can unlock wider commitments to build towards a brighter and more ambitious future.

The Minister is making an excellent speech. In the conversations that she has had with the Scottish Government, have they ever articulated a reason and an argument for not devolving that power to Glasgow? That devolution is what my constituents want. We can see from cities such as Manchester and Liverpool that it would benefit our city.

My hon. Friend will know that that is felt right across the city region, and across other city regions in Scotland. The Scottish Government seem simply addicted to the centralisation of and hoarding of power. We have made an argument to the people of Scotland that has been incredibly well-received: they live in places that they know and love best, and they want the people they elect locally to have greater power. We are in ongoing dialogue with the Scottish Government but their driving political imperative is nation building, not place shaping. That stands in sharp contrast to the approach of this Labour Government, which is to put power in the hands of communities to change the places that they know and love so well. Scotland needs proper devolution inside Scotland, not just to it. My hon. Friend the Member for Glasgow South will find no greater champion of that local power agenda than me.

We should at all times be guided by the fundamental principle that powers over local services and projects are often best exercised as close as humanly possible to the people whose daily lives they affect. The Scottish people need all levels of their Government to work together to make their lives and communities better. Strong, effective councils and empowered regional voices are key to a prosperous Scotland. We are fully committed to working alongside our local partners in the months and years ahead to deliver that better future for the Glasgow city region and beyond.

Before I close, I want to reassure the hon. Member for Strangford (Jim Shannon) that I am in ongoing dialogue with Northern Ireland Office Ministers about how we can take lessons from the city deal programme and scale them UK-wide. My hon. Friend the Member for West Dunbartonshire (Douglas McAllister) made a very important point about the strategic sites right along the Clyde. I happily visited one such site in his constituency with him. We are fully appraised of the opportunities right along the river.

Sitting suspended.