THE signing of the £1 billion City Deal for Edinburgh is expected tomorrow, David Mundell has indicated.

During Scottish Questions in the Commons, Labour’s Ian Murray bemoaned the fact that the UK Government could find £1.5bn for its deal with the Democratic Unionists but could “not find a solitary pen” to sign the City Deal for Scotland’s capital.

As Damian Hinds, the Work and Pensions minister, rose to respond, the Scottish Secretary could be heard from the Government front bench, suggesting there would be “excitement tomorrow”. Mr Hinds told Mr Murray: “I am told by my Right Honourable friend that he may have excitement coming soon.”

Other Whitehall sources also pointed to the Edinburgh deal being sealed tomorrow.

Later in Commons exchanges, Mr Mundell, under questioning about City Deals from the SNP’s Alison Thewliss, said: “I’m surprised by the Honourable Lady’s tone because this Government has committed to deliver City Deals across Scotland. There will imminently be some exciting news in relation to Edinburgh. I would have thought she would have welcomed that rather than simply politicking.”

The City Deal covers not just Edinburgh but also the other three Lothian councils, Fife and the Borders and will pave the way for a major cash injection focused on infrastructure, culture and tourism and housing.

It had been expected earlier in the year but was put back due to the local elections and then the General Election.

The deal is believed to involve £350 million each from the UK and Scottish Governments with smaller amounts from local councils and universities, totalling £1bn. It is also expected over time to bring in £3.2bn from the private sector.