Dundee is getting £20 million as part of the UK’s “levelling up” scheme, but city leader John Alexander thinks it will barely touch the sides of economic challenges.
The money is part of Chancellor Jeremy Hunt’s spending plans, and totals £80 million across four council areas in Scotland.
The money for Dundee comes days after a bid from neighbouring Angus Council to regenerate the Brechin Caledonian Railway was rejected for a second time.
Council leader Mr Alexander said all investment was welcome no matter where it came from, but said the city needs further support.
He told The Courier: “I’m certainly not going to be unhappy about £20 million.
“But we also have to reality check things. £20 million wouldn’t build a quarter of a new secondary school. It’s not economically transformational.
“It’s not going to touch the sides of the challenges Dundee faces.”
He called on the Scottish Government, run by his own party in Holyrood, to step forward and invest in the city where possible.
‘This is just the start’
Mr Alexander added: “I’m seeing this in a positive light. But I’m not taking this as the end of the conversation. This is just the start.
“This is just the UK Government element. I’m pursuing the Scottish Government as well, because we need both governments to work with us if we’re to make significant economic inroads into the challenges we face.”
Earlier, the council leader had posted a long message on social media defending the city’s reduced Christmas events offering this year.
“The council has already had to make £160 million of reductions and we face another £20 million,” he wrote.
“That’s not my choice, it’s not something that councillors in Dundee have much control over, but it is the reality.”
In January, Dundee received £14 million from the Levelling Up fund to transform an old car park into a modern transport hub for electric cars and e-bikes.
But city leaders called for further multi-million pound-funding in the city centre after missing out on a low-tax investment zone.
The Levelling Up scheme was brought forward when Boris Johnson was in power, and aims to regenerate struggling areas which have been left behind.
How will new £20m be used?
The new £20m is not yet tied to specific projects in the city.
The UK government had settled on the four areas – Dundee, Borders, Argyll & Bute, and Western Isles – after discussions with the Scottish Government.
Each of the four councils were considered to have a good case for some extra investment.
Council leaders and government will now hold talks on what individual projects should benefit from their share of the £80m total.
During his speech, Mr Hunt also had good news for the new Forth freeport, which will take in parts of Fife such as Rosyth and Burntisland.
The chancellor revealed the special economic zones will be given extended tax breaks for ten years instead of five.
Mid Scotland and Fife MSP Liz Smith said: “The help being offered by Rishi Sunak and Jeremy Hunt to businesses – especially with levelling up – will hugely increase productivity and boost investment.”
Following the chancellor’s statement, the UK Government said £545 million will be allocated to Holyrood over the next two years.
SNP finance minister Shona Robison, a Dundee MSP, will be responsible for steering her party’s own budget through parliament next month.
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