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Major funding deals for Scotland expected in Budget Budget 2016: Edinburgh and Inverness deals to be progressed
(about 3 hours later)
More than £1bn of government funding for Edinburgh, south-east Scotland and the Highlands is expected to be confirmed later in the Budget. Chancellor George Osborne has said negotiations would be opened on City Region Deal funding for Edinburgh and south-east Scotland.
Six local authorities, including Edinburgh and Scottish Borders, have sought £1bn. His announcement in the Budget has been welcomed by the six local authorities, including Edinburgh and Scottish Borders, behind a bid for £1bn.
Highland Council has applied for up to £300m to support projects in Inverness and the wider Highlands. The Budget document also said "good progress" was being made on a deal for Inverness and the Highlands.
Known as City Region Deals, the money would be provided by the UK and Scottish governments. Highland Council has sought up to £300m to support projects in the region.
The UK and Scottish governments would both contribute to the package, which aims to allow cities and regions to grow their economies.
Similar deals have previously been secured by Glasgow and jointly by Aberdeen and Aberdeenshire councils.Similar deals have previously been secured by Glasgow and jointly by Aberdeen and Aberdeenshire councils.
The idea behind the initiatives, which involve direct funding and greater borrowing powers, is to support economic growth. City of Edinburgh Council leader Andrew Burns said: ''We are delighted with the chancellor's pledge to develop a City Deal for our region and welcome the opportunity to continue our engagement with both the UK and Scottish governments.
"This commitment from Westminster is a step forward for our proposals to tackle inequality and accelerate substantial economic growth through investment in innovation, skills and infrastructure.
"We submitted our proposals in September 2015 and remain as determined as ever to negotiate greater fiscal powers for our region and funding towards strategic housing, transport and infrastructure to help the region to become the most connected, creative, inclusive and innovative place in Europe."
The Edinburgh and South-East Scotland City Region Deal bid aims to secure major funding to help better protect historic attractions in Scotland's capital, and also boost the wider area's overseas trade and opportunities for new businesses.The Edinburgh and South-East Scotland City Region Deal bid aims to secure major funding to help better protect historic attractions in Scotland's capital, and also boost the wider area's overseas trade and opportunities for new businesses.
Those involved have calculated that an additional £3.2bn worth of private sector investment could be leveraged if the bid is successful. Those involved have calculated that an additional £3.2bn worth of private sector investment could be leveraged if the bid was successful.
Free wi-fiFree wi-fi
Highland Council would use its funding for infrastructure projects and jobs creation.Highland Council would use its funding for infrastructure projects and jobs creation.
The local authority and the MP for Inverness, Nairn, Badenoch and Strathspey, Drew Hendry, said they expected confirmation of the funding.The local authority and the MP for Inverness, Nairn, Badenoch and Strathspey, Drew Hendry, said they expected confirmation of the funding.
The region has already secured £3m of City Region Deal funding.The region has already secured £3m of City Region Deal funding.
Scottish Secretary David Mundell confirmed this support during a meeting with Highland Council last year.Scottish Secretary David Mundell confirmed this support during a meeting with Highland Council last year.
The local authority plans to use the money on improving the appearance of Inverness Museum and Art Gallery, upgrading the grounds of Inverness Castle and on creating a free public access wi-fi scheme for the city.The local authority plans to use the money on improving the appearance of Inverness Museum and Art Gallery, upgrading the grounds of Inverness Castle and on creating a free public access wi-fi scheme for the city.