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Chamber and committees

Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 19 June 2025
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Displaying 1622 contributions

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Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Michelle Thomson

My point was about specific actions that you anticipate taking to protect the skills base during the transition period.

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Michelle Thomson

Thank you. Derek, you spoke about how vital it is that private sector partners are involved in various deals. I presume that they will do their own risk assessments because the convening power of a commitment to public sector funding is so vital to bringing in the private sector funding. Have you heard any concerns expressed by any of the private sector partners with whom you have dealt in any of the deals?

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Michelle Thomson

Good morning. Thank you for joining us, secretary of state. It is very much appreciated.

In your opening remarks, you correctly referenced the wider macroeconomic situation, which is, indeed, extremely challenging. I concede that you have inherited a very difficult position, but, arguably, some of the moves so far have made the macroeconomic picture even more complex and difficult, including the tax on jobs through the increase in employer national insurance contributions, and have the potential to lead to stagflation.

The chancellor is looking carefully at where further cuts might need to be made, What guarantees can you give on the UK Government鈥檚 commitment to multiyear funding? In other words, do you see that changing as a result of the macroeconomic challenges ahead?

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Michelle Thomson

I am talking about the city and regional deals.

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Michelle Thomson

Okay. In that case鈥擨 am not asking for a further response鈥攕hould funding be withdrawn by the UK Government at a future juncture due to the macroeconomic challenges that we have articulated, the Scottish Government would continue to have ultimate accountability for delivery without having the funding.

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Michelle Thomson

I have a couple of quick questions. Earlier, you mentioned the industrial strategy. The UK鈥檚 industrial strategy advisory council was formed in late 2024, but I am concerned about the fact that, despite the recognition that Scotland is at the heart of the net zero future, which is a critical growth sector, there is no Scottish representation on that council. Why is that?

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Michelle Thomson

Good morning, and thank you very much for joining us. I want to ask some general questions on the funding for the deals. We know that their profile has been different, and we know there have been historical differences and so on. You may be aware that the Secretary of State for Scotland gave evidence earlier, and I asked him, in light of the forthcoming review and the general challenges in the UK economy, whether there could be an impact on city deals, given the chancellor鈥檚 expressed need to find money anywhere that she can. How strong a sense do you have of the commitment to multiyear funding and, within that, the bringing in of private sector funding? In particular, how confident will the private sector be in funding if UK Government commitments to funding are uncertain?

It is a general question and I am not bothered who goes first. Derek, you smiled.

10:45  

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Michelle Thomson

Thank you. Does anyone else want to comment?

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Michelle Thomson

Although the movement in bond yields, of course, was the result of recent movements, I concede that other factors are at play in the wider global economy. However, one element of bond yields is confidence in policy at UK Government level. That is one element of it, among many.

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Michelle Thomson

You did not answer my direct question. My challenge is, how certain, given your articulation of the UK macroeconomy, can any city and region deal be as to the future profiling and flow of funding on a multiyear basis, given that the chancellor has been quite clear in saying that she will leave no stone unturned to look for potential cuts? This is a chance for you to put on record that the money that the UK Government has promised over a period will remain intact. Can you do that today?