Growth Deals give local areas specific powers and freedoms to help support economic growth, create jobs and invest in local projects.
Regional Growth 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 between partners including local authorities, the private sector, education and skills providers, and our economic agencies. The aim of these collaborations is to drive inclusive economic growth.
The Ayrshire Growth Deal is the first non-City Region Deal in Scotland. With a financial commitment of £251.5m, it represents the largest ever public sector investment by the public sector into Ayrshire.
Ayrshire has particular strengths in aerospace, engineering, life sciences, manufacturing and tourism. Targeted investment through the Growth Deal across these key sectors and strategic locations will act as a powerful catalyst, stimulating growth and resulting in increased prosperity for local people, for Scotland and for the UK as a whole.
The total value of the Ayrshire Growth Deal is £251.5 million.
This is separated in to the constituent parts of
Aerospace and Space
- Spaceport Infrastructure £23 million;
- ASIC and Visitor Centre £11 million;
- Commercial Space – Prestwick – Industrial & Hangar £29 million;
- Prestwick Infrastructure – Roads £17 million.
- The HALO £9 million;
- Ayrshire Engineering Park (Moorfield) £16 million;
- Ayrshire Manufacturing Investment Corridor (AMIC) £23.5 million;
- i3 Flexible Business Space £15 million;
- i3 Digital Processing Manufacturing Centre £6 million.
Energy, Circular Economy & Environment
- National Energy Research Demonstrator (NERD) £24.5 million;
- Hunterston Strategic Development Area £18 million;
- Ardrossan (IMSE) £10.5 million.
- Irvine Harbourside – Ardeer (The Great Harbour) £14 million;
- Marine Tourism £9.5 million.
- Digital Subsea Cable £11 million;
- Digital Infrastructure £3 million.
Regional Skills & Inclusion Programme
- Working for a Healthy Economy £5 million;
- Ayrshire Skills Investment Fund £3.5 million.
Community Wealth Building
- Community Wealth Building Fund £3 million.
The UK Government, the Scottish Government and each of the three Ayrshire councils are investing in the Deal.
The UK and Scottish Governments will invest £103 million each, with East Ayrshire Council investing £13.5 million, North Ayrshire Council investing £14 million and South Ayrshire Council investing £18 million.
All three Ayrshire Councils have been working together on the Ayrshire Growth Deal for a number of years. We recognise that this pan-Ayrshire approach will allow us to deliver investment, jobs and business growth. A strong Ayrshire economy will benefit not only the local community, but also Scotland and the wider UK economy. We are working with Scottish Enterprise; Skills Development Scotland; the tertiary education and third sectors and senior business and industry leaders to deliver these projects. This is very much a team effort and all partners are working together to achieve a stronger Ayrshire. The Regional Economic Partnership provides the governance to oversee the progress of each of the projects.
The Ayrshire Growth Deal will act as a powerful catalyst to stimulate growth and increase job opportunities and prosperity for Ayrshire, Scotland and the UK as a whole.
The COVID-19 pandemic has highlighted the importance of targeted investment and support for our key sectors. We will be closely monitoring the economic landscape as we move forward to ensure that the Ayrshire Growth Deal is well placed to respond to future impacts, challenges and opportunities.
Although COVID-19 provides uncertainty around how projects will fit with the new economic realities, we don’t foresee any project substitution at present, however, it is possible that some projects may be adjusted going forward.
We want Ayrshire to be competitive within the global marketplace, and we are confident our Growth Deal will enhance our ability to do this.
We will continue to monitor the external environment and government relations. Each partner has steering groups in place to monitor the impact of leaving the European Union.
There is a further process we need to go through to get to the point where both governments are able to sign off on the final business cases for the individual projects, and to start to release monies as the projects get under way.
We have agreed implementation and budgets for each project within the Deal and work has already started. The HALO Kilmarnock, on the former Johnnie Walker site in Kilmarnock, was the first project to commence with contractors starting on site in October 2019.
The Working for a Healthy Economy project, which will target large scale investment in occupational health services to ensure that Ayrshire has the required workforce to drive economic growth in the future, will commence delivery in April 2021.
The Community Wealth Building project will be implemented in April 2021 and will develop an Ayrshire approach to Community Wealth Building that enhances wealth, ensures fair and meaningful work, and creates successful places throughout the region.
Design and feasibility studies are under way for the National Energy Research Demonstrator project, as well as the Commercial Space, Aerospace and Space Innovation Centre and Roads projects at Prestwick.
Funds for each project will be released based on the sign-off of the individual business case, and the state of readiness to proceed. Relationships between interdependent projects will influence the timing as we move forward, and each Council will determine the timelines for projects in their respective areas.
The Growth Deal is all about economic growth, delivering investment, and creating jobs that will benefit all communities across Ayrshire. Growth Deal funding will be invested in Ayrshire’s key assets, such as Prestwick Airport and Hunterston. Ayrshire’s key business sectors including aerospace and space, engineering, manufacturing, tourism, food and drink and life sciences will also benefit from investment. It represents an excellent opportunity for us to facilitate sustainable economic growth to help our businesses, people and communities reach their full potential.