The Scottish Government has announced it will invest an additional £254 million in Aberdeen on top of the previously agreed City Region deal.

The UK Government confirmed today, 28 January, that it signed the agreement which will provide a £250m boost towards Aberdeen and North East Scotland's economy.

However, Cabinet Secretary Keith Brown has revealed the Scottish Government will pump £254m into the North East's infrastructure over the same five to ten year period as the City Region deal.

The funding will be targeted towards the delivery of improved transport and digital connectivity as well as local housing programmes requested by local authorities.

£1 billion is already being provided for the area while the construction of a new secondary school has been confirmed in Inverurie.


Existing investment include £170m for the railways (Aberdeen to Inverness), £37m in Inverurie Academy and £745m in the Aberdeen Western Peripheral Route.

Features of the extra £254m fund include:

• An initial £200m additional funding to help improve journey times and increase capacity on key rail links between Aberdeen and the Central Belt.

• £24m of funding for the trunk roads programme to support improvements to the key A90/A937 south junction at Laurencekirk.

• £10m for extension of digital infrastructure in the Aberdeen and Aberdeenshire area above and beyond the commitment through the City Deal.

• £20m in infrastructure funding to unlock housing sites that are of strategic importance to the local authorities as well as 5 year certainty on £130 million of affordable housing grant.

Cabinet Secretary Keith Brown said: "This announcement of additional funding sends an unequivocal message that Aberdeen and the North East remain central to driving future growth and prosperity in Scotland.

"While I support the City Deal agreement, the Scottish Government recognises that there is more support that can be made available to the region and that will deliver real economic benefits.

"That is why we have decided to invest £254 million of additional Scottish Government support in key infrastructure in the North East to cement Aberdeen as one of the world’s leading cities for business and industry."

(LM/CD)