A £2.9bn investment and development deal for infrastructure improvements has been agreed by Aberdeen City and Shire councils.

The councils have agreed to open direct negotiations with the UK and Scottish governments to secure the Aberdeen City Region Deal.

About £2.9bn is expected to be released over the next 20 years, supported by an economic strategy focusing on internationalisation, innovation and skills. This follows capital plans already in place by Aberdeen City Council and Aberdeenshire Council totalling £1.4bn of investment over the next 10 years.

At a meeting of Aberdeenshire Council, councillors agreed by 61 votes to two to support the Deal.

Aberdeen City Region Deal from AberdeenCC on Vimeo.

City Council Leader Councillor Jenny Laing said: "I am delighted that we have reached this important stage in the process with the all-party support of this council and also with the unanimous agreement today of Aberdeenshire Council for the City Region Deal.

"Despite Aberdeen's booming economy over the last 10 years, lack of enabling public sector investment has held back investment from the private sector. Lack of transport capacity in particular is constraining housing and jobs growth.

"We believe that the City Region Deal can act as a powerful catalyst for growth and diversification for existing and new industries, with an impact not just on the economy but on regional competitiveness, connectivity, infrastructure, housing, employment and lifestyle. These are the key elements to attract and retain the people we need to power and support our energy economy."

Leader of Aberdeenshire Council Councillor Jim Gifford said: "This is a golden opportunity for Aberdeen City and Shire to do something about the challenges facing the region. We know that infrastructure and talent are the things we need to address urgently to ensure that we attract people to the area, and we keep them here.

"The City Region Deal will help us to anchor the oil and gas industry and to shape what comes next. Ministers have told us our plan must be ambitious and forward-looking and I believe that the proposal is the first step towards us achieving that."

(IT)