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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 17 June 2025
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Displaying 761 contributions

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Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Gordon MacDonald

Do you know the timescale for what will happen in Edinburgh?

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Gordon MacDonald

Of course, the cost of delivering any project is impacted by construction inflation. Since 2020, construction inflation has increased by 20 per cent and it is expected to increase by a further 17 per cent by 2029. All the construction projects are impacted by Brexit, Covid, the conflict in Ukraine and the cost of living increase, yet the UK Government鈥檚 contribution is fixed. Why should local authorities pick up the inflationary aspect, or are you happy to see projects being descoped because of a lack of funding?

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Gordon MacDonald

They call it value engineering.

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Gordon MacDonald

I will change the subject slightly. City deals are supposed to be regional economic growth deals. Can you say anything about how much uptake there has been in local supply chains in the work on projects? Local companies use local tradespeople and local services, and they have their own supply chains of materials and so on, and it is important that we try to retain as much profitability from these projects within the local area. How much of the project in the SOSE area has been retained within the local supply chains?

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Gordon MacDonald

Do we know Scottish Enterprise鈥檚 level of spend on local supply chains?

11:45  

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Gordon MacDonald

Zoe Laird, I wanted to ask you the same question about inflationary pressures. I have a UK Government document from last summer that highlights that the 10 city deals had 286 projects, but only 115 of them were at the delivery or implementation stage, ignoring Argyll and Falkirk. Is there a danger that many projects will be pushed back because of inflationary pressures?

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Gordon MacDonald

So it is all private investment, and it is not the 拢800 million being rolled into AI.

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Gordon MacDonald

There will be a list of projects within that 拢14 billion. Do you know where Edinburgh comes in that list? Is it near the top or at the very bottom?

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Gordon MacDonald

But there will be no additional funding to meet that gap.

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Gordon MacDonald

Good morning. We have touched on inflation and some of the pressures already, but the Government鈥檚 funding is fixed and it is over 10 or 20 years. How should that funding pressure be handled by the various deals? We have 12 deals on the table. Two are fairly recent, but 10 have a bit of history. How are they dealing with the inflationary pressure at the moment? Derek, do you want to go first?