SMALL firms have demanded that prominent business figures are appointed to advisory roles within council areas to ensure multi-billion pound City Deal funding delivers for local economies.
In a submission to the Scottish Parliament’s local government committee, the Federation of Small Businesses (FSB) warned that its members have had too few opportunities to influence city deal spending priorities.
And as councils decide on the infrastructure projects to be funded from City Deals, FSB external affairs manager, Stuart McKinnon, said “at every key decision we want someone there thinking about the interests of the local private sector”.
Glasgow City Council, which is overseeing the bulk of the £1 billion Glasgow Region City Deal, signalled broad support for business involvement, with a council spokesman saying that championing the needs of business was a key part of its growth plan for the city.
Mr McKinnon said a “local champion” should be appointed in a “non-executive director type role” by each of the six City Deals to “bridge the gap between public and private sectors”.
They would be well-established local business owners with good links in the wider business community, who would be able to participate while continuing to run their own businesses.
Mr McKinnon said they could prime local businesses to bid for contracts, examine procurement processes to maximise local economic impact, or ensure works are carried out with minimum impact on existing businesses.
The Glasgow City Council spokesman said it had held a number of business engagement events, which had helped inform the business cases for City Deal projects. “We welcome this call for continued engagement and remain open to suggestions as to how the public and private sectors can work together to achieve real growth,” he said.
In addition to Glasgow City Region, there are active deals in Inverness and Highlands and Aberdeen City Region, with projects planned in Tay Cities, Edinburgh and South East, Ayrshire and Stirling. Total public sector investment is believed to be around £5 billion.
Liz Cameron, chief executive of Scottish Chambers of Commerce, said City Deals were the most significant examples of a raft of initiatives to support economic growth from both the UK and Scottish Governments.
It is vitally important that businesses feel that they are an integral part of these projects and that the private sector is providing genuine leadership,” she said. “At the end of the day, our businesses know best what challenges they are facing and how best to take advantage of opportunities.”
Andy Willox, FSB’s Scottish policy convenor, said that while City Deals were delivering much needed infrastructure spending and fostering intergovernmental partnerships, too few local firms feel part of their local deal.
One FSB member in Glasgow was quoted by the organisation as saying: “As both a resident and a business, I have had no information, no consultation and no knowledge of the City Deal despite it impacting massively on an area that is a few hundred yards away.”
Mr Willox added: “Given the scale and duration of these spending packages, and that almost half of Scotland’s firms operate in an area that already has a deal in place, this absolutely needs to change. Local business champions are one way to address this problem,” he said.
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