Nicola Sturgeon urges Prime Minister to confirm city deal for Aberdeen ‘as a matter of urgency’

Nicola Sturgeon has written to David Cameron to urge him to support a city deal for Aberdeen “as a matter of urgency”.

In her letter to the Prime Minister, the First Minister confirmed that the Scottish Government would fund the multi-million pound deal on a 50:50 basis.

The First Minister asked for an agreement between the Scottish and UK governments and the local authorities to be struck as soon as possible to “send a strong and unequivocal signal” of support to the city and the wider region.

In the letter she said: “Given the current situation in Aberdeen, with significant private sector job losses announced in recent weeks by the oil and gas industry, it is vital that government sends a strong and unequivocal signal that it is fully supportive of the region’s position as a global oil and gas hub.

“The city deal provides a good opportunity to signal our respective governments’ support for the region. Against that backdrop, I am supportive of moving as soon as possible to agree the Aberdeen city deal.”

A city deal would pave the way for substantial investment in innovation, digital connectivity and infrastructure across the region.

Proposals include plans to create a new innovation hub to support Aberdeen making the transition from an operations base to a global centre for technology and R&D investment, helping to secure its future in the oil and gas industry.

The deal also aims to diversify the North East economy, building on other strengths such as biopharmaceuticals, agriculture, and food and drink.

The First Minister will visit Aberdeen on 1 February for a series of meetings, including with senior executives at BP, as well as discussions with Aberdeen Chamber of Commerce.

A joint committee to manage the Aberdeen City Region Deal was established between Aberdeenshire Council and Aberdeen City Council last month

Earlier this week Scottish Liberal Democrat MSP Alison McInnes questioned the cabinet secretary for infrastructure Keith Brown on whether the city deal was still a priority for the Scottish Government.

Speaking afterwards, McInnes said: “As Brent crude prices drop to their lowest levels in twelve years and oil companies announce hundreds more jobs are to go, the need for regional investment in Aberdeen and the surrounding area is more urgent than ever.

“A successful deal must be reached and funding released as quickly as possible for a region where people are living in constant fear of losing their jobs.”