Leaders from Dundee’s business community have expressed their dismay and confusion that the city has been overlooked for another much-needed economic stimulus programme.
After missing out on a green port bid, Dundee has now failed to become an investment zone.
Aberdeen and Glasgow were announced on Friday as the winners of the status. The joint UK and Scottish government decision will mean lucrative tax-breaks and £80 million over five years.
‘Disheartening and short-sighted’ decision to deny Dundee investment zone status
Greig Coull, chief executive of Michelin Scotland Innovation Parc, which led the city’s green port bid, described the new decision as “disheartening”.
He said Dundee has “acute” economic needs and would have benefitted greatly from being an investment zone.
“This decision seems short-sighted. The awards have been made to areas which have already benefitted from generations of prosperity,” he said.
“At MSIP, we want to foster a collaborative rather than a competitive approach to meeting the climate change targets, but decisions such as these do nothing to further this ambition.
“No part of Scotland is in greater need of government support to underpin inclusive economic growth.
“We must hope the unique collection of innovation and industrial expertise in the Dundee area does not continue to go unnoticed when decisions of this kind are taken.”
‘Worrying’ Dundee remains overlooked
Alison Henderson, chief executive of Dundee and Angus Chamber of Commerce and chair of the Dundee Fair Work & Enterprise Board, said it was “deeply worrying” governments continue to favour other cities and regions of Scotland for investment.
She said: “Dundee remains the only major Scottish city without the necessary support at national level to address the substantive inequalities and economic challenges which see us languish at the bottom of UK cities in terms of business start-ups, employment and investment to create high quality jobs.
“We welcome the creation of investment zones in Scotland that will empower local leaders and improve pride of place.
“We stand ready to lead what is an overdue conversation with governments with the offer that Dundee leaders are more than ready to rise to the challenge on behalf of our city.
“Dundee hit the headlines for all the right reasons as Lonely Planet’s ‘Best in Europe’ in 2018.
“But its citizens, business leaders and partners perhaps rightly feel we’re currently in a lonely position in June 2023.”
Council leader calls for action
Dundee City Council leader John Alexander, who has been vocal in his condemnation of the decision, said it leaves city companies at a competitive disadvantage.
He said: “It is inherently unfair that businesses in other places will now receive a competitive advantage, even although they are already in locations with higher growth, higher employment rates, lower business closure rates and higher business start-up rates.
“The business community in Dundee want to be heard. They want support and they want to help governments achieve positive outcomes on job and wage growth.
“Dundee faces a significant economic task and city leaders are actively playing our part but we need government(s) to lean in and play theirs.
“We are starting from a lower base than many other city’s as a result of decades of post-industrial decline.
“Our business community now faces the very real possibility of being further challenged by competitors in other parts of the country at a time when many are already struggling because of energy costs and the cost-of-living crisis.
“If levelling up is about alleviating poverty and economic problems, then government needs to bring its focus to Dundee.”
