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Cameron unveils £500m funding for Glasgow ahead of 'no' campaign rally Cameron unveils £500m funding for Glasgow before 'no' campaign rally
(about 1 hour later)
David Cameron has confirmed that Glasgow has become the latest city to win special funding from the Treasury, in a £500m deal to boost infrastructure investment and employment.David Cameron has confirmed that Glasgow has become the latest city to win special funding from the Treasury, in a £500m deal to boost infrastructure investment and employment.
The prime minister announced the funding as he prepared for a major Scottish Tory anti-independence rally where he is due to appeal to the country's "silent majority" to speak up for the UK. The prime minister announced the funding as he prepared for a Scottish Tory anti-independence rally where he is due to appeal to the country's "silent majority" to speak up for the UK.
Cameron said the city deal funding for Glasgow, disclosed by the Guardian on Sunday, would see the creation of up to 28,000 jobs and would help pay for investment in roads, bus services and employment programmes.Cameron said the city deal funding for Glasgow, disclosed by the Guardian on Sunday, would see the creation of up to 28,000 jobs and would help pay for investment in roads, bus services and employment programmes.
The prime minister said it would also help fund a £210m rail link to Glasgow airport from the city centre which was scrapped in controversial circumstances by Alex Salmond's government in 2009 – a scheme Glasgow's Labour-led council now hopes to resurrect. The prime minister said it would also help fund a £210m rail link to Glasgow airport from the city centre that was scrapped in controversial circumstances by Alex Salmond's government in 2009 – a scheme Glasgow's Labour-led council now hopes to resurrect.
Cameron's announcement came as John Swinney, the Scottish finance secretary, said Scotland was likely to lose billions of pounds from planned UK government spending cuts if there was a no vote in the referendum.Cameron's announcement came as John Swinney, the Scottish finance secretary, said Scotland was likely to lose billions of pounds from planned UK government spending cuts if there was a no vote in the referendum.
The city deals programme, initiated by Nick Clegg, the deputy prime minister in 2011, was originally set up to strengthen and promote the economies of major city regions in England and not as a UK-wide initiative. The city deals programme – launched by Nick Clegg, the deputy prime minister, in 2011 – was originally set up to strengthen and promote the economies of large city regions in England and not as a UK-wide initiative.
The £500m gift to Glasgow marks a further attempt by UK government ministers and no campaigners to kill off Salmond's quest for Scottish independence in the run-up to September's referendum, with recent opinion polls suggesting the yes campaign's advance in public support has stalled. The £500m funding for Glasgow marks a further attempt by UK government ministers and no campaigners to kill off Salmond's quest for Scottish independence in the runup to September's referendum, with recent opinion polls suggesting the yes campaign's advance in public support has stalled.
The deal will be brandished as physical proof of the "union dividend" by no campaigners, with the city about to host the 2014 Commonwealth games.The deal will be brandished as physical proof of the "union dividend" by no campaigners, with the city about to host the 2014 Commonwealth games.
The announcement has also been timed to coincide with Friday's emblematic naming ceremony at Rosyth dockyard in Fife of the Royal Navy's new Queen Elizabeth aircraft carrier by the Queen. The vessel is the largest warship built in Britain, with the largest contracts awarded to Scottish dockyards, the two BAE yards on the Clyde and Babcock's site at Rosyth. The announcement has also been timed to coincide with Friday's emblematic naming ceremony at Rosyth dockyard, in Fife, of the navy's new Queen Elizabeth aircraft carrier by the Queen. The vessel is the largest warship built in Britain, with the largest contracts awarded to Scottish dockyards, the two BAE yards on the Clyde and Babcock's at Rosyth.
Glasgow's programme will involve local councils in the area investing £130m and Cameron challenged the Scottish government to match that spending.Glasgow's programme will involve local councils in the area investing £130m and Cameron challenged the Scottish government to match that spending.
Gordon Matheson, Glasgow's Labour leader, told the Evening Times: "This is the start of an era of transformation in the Glasgow city region. This truly historic city deal is the biggest in the UK and the first in Scotland. Gordon Matheson, the city council's Labour leader, told the Evening Times: "This is the start of an era of transformation in the Glasgow city region. This truly historic city deal is the biggest in the UK and the first in Scotland.
"City regions really are the engines of national economic growth and I have long argued that devolving more power to our cities is the best way to grow the Scottish and British economies.""City regions really are the engines of national economic growth and I have long argued that devolving more power to our cities is the best way to grow the Scottish and British economies."
In a joint statement, the prime minister and Danny Alexander, chief secretary to the Treasury, said Glasgow was one of the UK's greatest cities. In a joint statement, the prime minister and Danny Alexander, the chief secretary to the Treasury, said Glasgow was one of the UK's greatest cities.
"For too long governments in London and Edinburgh have acted as though taking powers away from Britain's great cities is the best way to create growth, rather than trusting the people living there to find their own specific solutions to meet their own unique needs," they said."For too long governments in London and Edinburgh have acted as though taking powers away from Britain's great cities is the best way to create growth, rather than trusting the people living there to find their own specific solutions to meet their own unique needs," they said.
Speaking in Dundee, Swinney said a SNP government would offer "a sustainable and credible alternative to austerity" by investing £4.2bn between 2017 and 2019 in economic growth.Speaking in Dundee, Swinney said a SNP government would offer "a sustainable and credible alternative to austerity" by investing £4.2bn between 2017 and 2019 in economic growth.
That compared to the £25bn cuts proposed across the UK by the current Westminster government, which could see Scotland's Treasury grant cut by roughly £2.5bn, he predicted. That compared with the £25bn cuts proposed across the UK by the current Westminster government, which could see Scotland's Treasury grant cut by about £2.5bn, he predicted.
"In the first year of an independent Scotland, our balance sheet is forecast to broadly match the UK's and public sector debt will be falling as a share of GDP. Scotland will therefore start life with the opportunity to do things differently," Swinney said."In the first year of an independent Scotland, our balance sheet is forecast to broadly match the UK's and public sector debt will be falling as a share of GDP. Scotland will therefore start life with the opportunity to do things differently," Swinney said.
"This means we could, within an overall commitment to fiscal responsibility, provide a credible and sustainable alternative to the current UK government's fiscal plan and place a greater focus on supporting growth and tackling inequality."