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Aberdeen city deal funding announced by governments Aberdeen to benefit from £504m government investment
(about 7 hours later)
A £250m "city deal" for Aberdeen has been confirmed, which will see the UK and Scottish governments jointly invest in the north east region. The north east is to benefit from £504m to improve infrastructure and attract jobs.
Prime Minister David Cameron is to visit Aberdeen to announce the deal and support for the oil and gas industry. A £250m "City Deal" for Aberdeen will see the UK and Scottish governments jointly invest in the area.
Separately, the Scottish government has promised an extra £254m for Aberdeen and Aberdeenshire.
Scottish ministers have announced investment to improve rail links and other infrastructure to help the north east compete in challenging times.
Prime Minister David Cameron is to visit Aberdeen to announce the City Deal and support for the oil and gas industry.
Nicola Sturgeon had written to Mr Cameron "urgently" calling for a deal following job losses in the industry.Nicola Sturgeon had written to Mr Cameron "urgently" calling for a deal following job losses in the industry.
The agreement includes funding for an energy innovation centre and the expansion of Aberdeen harbour.The agreement includes funding for an energy innovation centre and the expansion of Aberdeen harbour.
The Aberdeen agreement, which will be signed by Scottish Secretary David Mundell on behalf of the Westminster government, follows a similar deal for Glasgow in 2014.The Aberdeen agreement, which will be signed by Scottish Secretary David Mundell on behalf of the Westminster government, follows a similar deal for Glasgow in 2014.
There had been calls for greater support for Aberdeen, with the oil and gas industry struggling with low oil prices.There had been calls for greater support for Aberdeen, with the oil and gas industry struggling with low oil prices.
Mr Cameron is visiting the city to meet local workers and senior industry executives, and is expected to announce further UK government measures to safeguard jobs.Mr Cameron is visiting the city to meet local workers and senior industry executives, and is expected to announce further UK government measures to safeguard jobs.
'Crucial sector''Crucial sector'
Mr Mundell said: "Oil and gas is a crucial sector, not just for the north east of Scotland but for the whole of the UK.Mr Mundell said: "Oil and gas is a crucial sector, not just for the north east of Scotland but for the whole of the UK.
"I know it's a very tough time for people who work in the industry and their families, and I am determined that the UK Government will do what it can to support them. "I know it's a very tough time for people who work in the industry and their families, and I am determined that the UK government will do what it can to support them.
"We need action which will help in the short, medium and long term - building a bridge to the future of the North Sea, helping the UK's oil and gas industry to export its world-class expertise around the globe, and encouraging diversification of the economy to create new opportunities in other sectors too.""We need action which will help in the short, medium and long term - building a bridge to the future of the North Sea, helping the UK's oil and gas industry to export its world-class expertise around the globe, and encouraging diversification of the economy to create new opportunities in other sectors too."
The city deal includes proposals to support exploiting remaining North Sea oil reserves, and work at Aberdeen harbour to help the city compete for decommissioning work. The City Deal includes proposals to support exploiting remaining North Sea oil reserves, and work at Aberdeen harbour to help the city compete for decommissioning work.
A new ministerial group on oil and gas, chaired by Energy Secretary Amber Rudd, has been set up to help support the industry.A new ministerial group on oil and gas, chaired by Energy Secretary Amber Rudd, has been set up to help support the industry.
The group met for the first time on Wednesday, agreeing to produce an oil and gas workforce plan in the spring, focusing on what the government can do to support workers at risk of redundancy.The group met for the first time on Wednesday, agreeing to produce an oil and gas workforce plan in the spring, focusing on what the government can do to support workers at risk of redundancy.
Ms Rudd said: "The UK government stands 100% behind our oil and gas industry and the thousands of workers and families it supports.Ms Rudd said: "The UK government stands 100% behind our oil and gas industry and the thousands of workers and families it supports.
"It's a fantastic industry which benefits Scotland and the whole of the UK, but clearly the low oil price brings real challenges and we're determined to do everything we can to take advantage of the UK's broad shoulders and help build a bridge to the future for UK oil and gas.""It's a fantastic industry which benefits Scotland and the whole of the UK, but clearly the low oil price brings real challenges and we're determined to do everything we can to take advantage of the UK's broad shoulders and help build a bridge to the future for UK oil and gas."
'Unequivocal message'
Announcing the extra £254m from the Scottish government, Infrastructure, Investment and Cities Secretary Keith Brown said the money would be targeted towards the delivery of improved transport and digital connectivity and local housing programmes requested by the local authorities.
"This announcement of additional funding sends an unequivocal message that Aberdeen and the north east remain central to driving future growth and prosperity in Scotland," he said.
"While I support the City Deal agreement, the Scottish government recognises that there is more support that can be made available to the region and that will deliver real economic benefits.
"That is why we have decided to invest £254m of additional Scottish government support in key infrastructure in the north east to cement Aberdeen as one of the world's leading cities for business and industry.
"It is clear that the appetite of the councils, and the needs of the area require more."
Specific Scottish government funding:
Nicola Sturgeon will visit Aberdeen on Monday for meetings with the oil and gas industry where she will make a further announcement of Scottish government action to support innovation, exploration, skills and access to finance for the North Sea industry.
Export marketsExport markets
Aberdeen City Council leader Jenny Laing said: "Our City Region Deal recognises the need to continue investment and innovation in the energy sector not only in terms of decommissioning but also in the related technologies that will help deepen our presence in export markets.Aberdeen City Council leader Jenny Laing said: "Our City Region Deal recognises the need to continue investment and innovation in the energy sector not only in terms of decommissioning but also in the related technologies that will help deepen our presence in export markets.
"However, the package announced today is only the first stage in transforming the North East of Scotland and I look forward to continuing our discussions with all layers of government." "However, the package announced today is only the first stage in transforming the north east of Scotland and I look forward to continuing our discussions with all layers of government."
Martin Kitts-Hayes, co-leader of Aberdeenshire Council, said: "We believe that this marks the start of a huge opportunity for the Aberdeen City Region and we welcome the significant investment that will open the doors to further investment in key areas such as infrastructure and housing, that is so fundamental to the region." Martin Kitts-Hayes, co-leader of Aberdeenshire Council, said: "We believe that this marks the start of a huge opportunity for the Aberdeen City region and we welcome the significant investment that will open the doors to further investment in key areas such as infrastructure and housing, that is so fundamental to the region."
First Minister Nicola Sturgeon had written to Mr Cameron calling for the deal to be signed "as soon as possible". Ms Sturgeon had written to Mr Cameron calling for the deal to be signed "as soon as possible".
She said it was "vital that the government sends a strong and unequivocal signal that it is fully supportive of the region", adding: "The city deal provides a good opportunity to signal our respective governments' support for the region."She said it was "vital that the government sends a strong and unequivocal signal that it is fully supportive of the region", adding: "The city deal provides a good opportunity to signal our respective governments' support for the region."
Deputy First Minister John Swinney has also called for talks with Chancellor George Osborne ahead of the budget in March, urging him to ease the "tax burden" on North Sea industry.Deputy First Minister John Swinney has also called for talks with Chancellor George Osborne ahead of the budget in March, urging him to ease the "tax burden" on North Sea industry.