English scheme to link Scots cities

Published on Thursday 5 October 2006 00:35

COLLABORATION between Glasgow and Edinburgh is to be given a fresh boost after a meeting of the Edinburgh Business Assembly (EBA) agreed to enhance links between the cities and push for an English scheme for financing vital infrastructure projects that will jointly improve their competitiveness.

The EBA, the first public-private urban policy forum in the UK, yesterday released details of the first of its meetings, attended by Stephen Purcell, leader of Glasgow City Council. Also present was the new director of Glasgow-Edinburgh Collaboration, Laura Gordon, along with Edinburgh Council representatives, led by council leader Ewan Aitken, and the 18 leaders of key Edinburgh businesses who comprise the EBA.

Key among the proposals was the decision to seek ways to adopt an "innovative funding" package, the Local Authority Business Growth Incentive (LABGI) - a scheme for borrowing for development against a projected uplift in business rates earnings from the projected development. The scheme was pioneered by the Office of the Deputy Prime Minister in Westminster.

Geoff Ball, the chairman of EBA, said: "If this is a model in use in England, why on earth is it not in use here?"

Projects cited as being potential beneficiaries of the scheme include development schemes such as Edinburgh's Quartermile, Waverley station and Fountainbridge.

Edinburgh Council's spokesman on EBA said: "We have to find ways to make a larger-scale operations fund than what we now have."

The spokesman said that accountants PriceWaterhouseCoopers had examined the scheme and found "no compelling reason why we can't do it in Scotland".

He added: "It would be another string to our bow, because at the moment the public purse cannot pay for all the things we want to do."

The EBA also resolved to produce a study of the "business case" for Edinburgh-Glasgow collaboration, and to lobby the Executive to end the two-year time-limitation on the successful Cities Growth Fund scheme which has already provided each city with tens of millions for development projects.

Aitken said that the meeting had produced proof that the two cities "can do business together" and were prepared to focus on "infrastructure and joint marketing" to mutual advantage.

"Stephen Purcell and I are old friends and I was glad of the chance to demonstrate that we are singing from the same political song sheet. We don't see each other's city as a threat," he said.

Founded in May 2005, the EBA is the first organisation in the UK bringing together business leaders and local politicians. A voluntary body, with no administrative apparatus, it exists "to facilitate high level dialogue to promote the capital's growth and prosperity".