LONG-TRUMPETED plans to pump billions of pounds of public money into Scotland’s key cities risk sucking jobs out of neighbouring areas, it has been claimed.

More than £3 billion has been invested in City Deals so far, with the scheme aimed at boosting economic growth and providing the cash to kick-start new infrastructure projects.

But a Holyrood inquiry has expressed some “scepticism” over what is being promised – “particularly in terms of the numbers of new jobs”.

READ MORE: Nicola Sturgeon urges Scots to be "assertive" over Brexit

It raised concerns injecting extra funding into cities could simply displace jobs and investment from areas not covered by the deals – leaving them “doubly disadvantaged”.

And it found the process for choosing what projects would be included was “too opaque and too top down”, with “confused and cluttered” priorities between the UK Government, Scottish Government and local authorities.

Edinburgh Council leader Adam McVey had earlier told MSPs that plans to use the investment to extend the city’s beleaguered tram system were vetoed by both the UK and Scottish governments – despite council support.

Meanwhile, Fife Council has expressed frustration that funding for a proposed Levenmouth rail link was left out of Edinburgh’s wider deal, which covers Fife.

Bob Doris MSP, convenor of Holyrood's Local Government and Communities Committee – which led the inquiry – said it welcomed the "significant investment of £3.3 billion" represented by City Deals.

READ MORE: Nicola Sturgeon urges Scots to be "assertive" over Brexit

But he insisted there were "significant issues" that needed to be addressed, adding: "While it’s still very early days in the City Region Deals lifespan, it’s not clear how other towns and the more rural and remote areas of Scotland will benefit from these Deals.

“There is also a risk that some parts of Scotland could miss out or lose out on the benefits that these projects may bring, and that other initiatives are treated as the poor cousin in comparison.

“In order for City Region Deals to be a success right across Scotland, we need clarity on when this initiative will be extended to all."

Four City Deals have so far been brought forward in Scotland – focusing on Aberdeen, Inverness, Glasgow and Edinburgh – with talks ongoing about future deals for Stirling and Tayside.

Projects unlocked by the investment include a new £144 million direct rail link between Glasgow Central Station and Glasgow Airport, as well as a £354m Oil and Gas Technology Centre in Aberdeen.

But MSPs said it was vital similar growth deals for Ayrshire and the Borders are not seen as the "poor cousins of City Region Deals".

READ MORE: Nicola Sturgeon urges Scots to be "assertive" over Brexit

Their inquiry report said there was currently "a mismatch between the objectives of local government and of the two governments [Scottish and UK]" – with a "tension" between their different aims.

And while admitting it was "too early" to judge the economic impact of the deals, it said there was a danger "investment in the new city regions will simply displace investment and employment creation from other parts of Scotland nearby".

It added: "At this stage, it is not clear to us how the remoter, rural or other areas outwith Scotland's cities will benefit from these deals."

City Deals were first introduced by the UK Government in 2011 as a way of kick-starting local economic growth, with the scheme extended to Scotland three years later.

Economy Secretary Keith Brown said the Scottish Government had committed more than £1 billion to City Deals so far and would continue to support them.

He said: “City Region Deals are only one of our economic levers.

"We are focused on improving the economic prospects of every region in Scotland and will work to ensure that all areas benefit from Regional Economic Partnerships, which provide opportunities for local communities and businesses to engage in regional economic planning and development.

“We thank the committee for its interest in City Deals and for this report and we will consider their recommendations thoroughly.

"City Region Deals represent an important opportunity for inclusive economic growth and to forge new collaborations between the Scottish Government, the UK Government and local authorities and their regional partners.”