Glasgow and North East to benefit from tax breaks as 'investment zones'

The two regions will each be supported by up to £80 million in targeted investment

The North East is one of the new investment zones

Glasgow and the North East are to benefit from tax breaks and other incentives as Scotland’s first two “investment zones”, it has been announced.

The two regions will each be supported by up to £80 million in targeted investment following a joint selection process by the Scottish and UK governments.

The scheme aims to boost the economy, stimulate business growth and create high-quality, well-paid jobs, and is a key part of the UK Government’s “levelling up” agenda. It will focus on priority sectors including technology, the creative industries, life sciences, advanced manufacturing and the green sector.

Michael Gove. Picture: Leon Neal/Getty Images

UK ministers previously committed to establishing 12 investment zones across the UK, with eight proposed locations announced in England and a further four in Scotland, Wales and Northern Ireland.

Michael Gove, Secretary of State for Levelling Up, said: “This is an historic milestone as we widen the opportunity and ambition of the investment zone programme to grow the economy across the whole of the United Kingdom.

“I am very appreciative of the constructive approach the First Minister and Deputy First Minister have shown in the meetings I have had with them in recent weeks. We all have a shared ambition to work together to see all parts of Scotland thrive and today’s agreement builds on our successful rollout of green freeports in Scotland earlier this year.

“Both Aberdeen and Glasgow, and their surrounding areas, have been at the very heart of the UK’s economic success for generations. Shipbuilding on the Clyde. Oil and gas exploration in the North Sea and a leader in the renewable sector. Both responsible for exporting some of the world’s finest food and drink around the globe. Both playing home to some of the biggest financial service companies we have. We want to build on this proud present and past so that Aberdeen and Glasgow continue to make a massive contribution to the UK economy.”

SNP Wellbeing Economy Secretary Neil Gray said: “This is a milestone in the delivery of investment zones in a way that enhances Scotland’s economy while aligning with our distinctive priorities. Scotland already has a strong track record in innovation and research and the investment zones can build on these strengths.”

The Scottish Government said the new zones will have a strong emphasis on fair work, mirroring the arrangements for green freeports. Regional leaders, businesses and universities will take the lead in shaping and developing specific plans.