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Dundee ‘well placed’ to benefit if UK and Scottish governments agree new investment zones

First Minister Humza Yousaf said he would seek to work with the UK Government to use tax incentives to encourage local investment.

Dundee City Council leader John Alexander
Council leader John Alexander has pushed for more support for Dundee. Image: Steve Brown/DC Thomson.

Dundee could benefit if the UK and Scottish governments agree to use tax incentives to encourage investment.

First Minister Humza Yousaf used his programme for government to set out how he would press Westminster to use its tax levers to encourage investment in areas like renewable energy, life sciences and medical technology.

It comes after Dundee missed out on £80 million of investment and tax breaks were turned down.

The city’s bid for a green port was also unsuccessful, leaving council leader John Alexander promising to “kick down doors” to win support.

Following Mr Yousaf’s letter to Prime Minister Rishi Sunak on the issue, Mr Alexander said Dundee should be up front for support.

Humza Yousaf set out his government’s priorities on Tuesday. Image: PA.

He told The Courier: “It goes without saying that I will be working with partners to ensure Dundee is up front and centre in those considerations and if the approach is based upon sectors then we have a significant amount to attract investment and support, from renewables to digital, life sciences to mobility.”

He has also invited both government to a roundtable to discuss the city’s economic needs.

“Time is of the essence,” he added.

Maurice Golden, Scottish Conservative MSP for the North East said people and business in Dundee wanted to see all levels of government working together.

He said: “If that happens with these proposals, there could be great economic benefit for the area.

“Tax incentives have been shown to work in a range of ways, and Dundee is well-placed to benefit from them.

‘Dundee ought to be next in line’

“There is a feeling that Dundee has waited its turn for such initiatives, and that it ought to be next in line as and when more zones are announced.

“It seems all sides politically are singing from the same sheet, so I hope we can see real progress soon.”

Leaders from Dundee’s business community previously expressed dismay at the lack of support for the city.

Alison Henderson, chief executive of Dundee and Angus Chamber of Commerce, 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.”

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