About the City Region Deal

City Region Deal

The Aberdeen City Region Deal is one delivery mechanism for the Region's economic vision. Aberdeen City and Aberdeenshire councils and local leaders, together with the UK and Scottish Governments, are working together to address the challenges currently facing the Region and to capitalise on the substantial opportunities.

Over the next 10 years, both Governments are committed to jointly investing up to £250 million. Aberdeen City Council and Aberdeenshire Council and regional partners are committed to investing up to £44 million. These commitments form part of an overarching £826 million funding package for the Aberdeen City Region Deal.

What is a City Deal?

In December 2011, the UK government announced it wanted to negotiate the transferral of a range of powers to cities and wider city regions, allowing them to play a vital role in the economic recovery of the country.

City Region Deals are negotiated on an individual basis and allow each city region to unlock financial support and powers from national government, giving local bodies greater control over spending and decision-making.

Asks need not be restricted to financial support in the form of grants and loans, and can include requests for regulatory change or the relocation of public agencies to facilitate cluster growth.

The first wave of deals were with the eight largest UK cities and their city regions – Greater Birmingham and Solihull, Bristol and West of England, Greater Manchester, Leeds, Liverpool, Newcastle, Nottingham and Sheffield.

Projects including improved road and rail connectivity, increased housing options and city centre regeneration are all taking place in these areas thanks to City Region Deals.

How will it benefit the North East?

Aberdeen City Region (Aberdeen and Aberdeenshire) is one of the most prosperous regions in the UK. It is Scotland's third largest City Region and is home to nearly half a million people.

The Aberdeen City Region Deal is the starting point of a long-term improvement programme providing what is possibly the best opportunity in the UK to build further growth into an already successful regional economy.

The City Region Deal will have far reaching impacts, not just on the economy, but on regional competitiveness, connectivity, infrastructure, housing, employment and lifestyle, all of which are key elements in attracting and retaining the people we will continue to need to power and support the energy sector.

The Value of the Aberdeen City Region Deal

The Aberdeen City Region Deal is valued to be worth £826.2 million over a ten year period. Significant investment is being provided by UK Government (£125m), Scottish Government (£125m), Aberdeenshire Council (£10m), Aberdeen City Council (£10m), the two Universities in Aberdeen (£23,500), Private Sector and other local economic partners (£532.7m).



UK & Scottish Governments


Aberdeenshire and Aberdeen City Councils




Private Sector


Other economic partners