Each region will receive up to £80m over a five year period in the form of direct investment, tax reliefs, and other incentives according to the Scottish government. The decision aligns with the National Strategy for Economic Transformation to bolster innovation in critical sectors like net zero, digital tech, and life sciences. 

The Investment Zones will be spearheaded by the Regional Economic Partnership in each area in order to propose sectors that should receive the funding, taking into account each region’s strengths. 

These latest investment zones were named as part of the UK Government’s 2023 Spring Budget which committed to 12 investment zones across the UK. Eight proposed locations in England left four to be allotted in Scotland, Wales, and Northern Ireland. 

“A rigorous process has been followed in selecting Glasgow City Region and the North East,” said Neil Gray, wellbeing economy secretary. “We will, of course, continue to invest in all of Scotland’s regions, for instance through Growth and City Region deals, to build on their strengths and stimulate jobs and growth.”

While the specific sectors which will receive support have yet to be named, the tech industry will, without a doubt, benefit from this initiative. The enterprise value of the Glasgow City Region tech ecosystem is £3.4 billion, rising 89% since 2018. 

According to Savillis, the region’s gross value added (GVA) is expected to grow 25% in the next 15 years, almost doubling the 13% growth it experienced in the last 15. 

Stuart Patrick, Glasgow Chamber of Commerce chief executive said: “Today’s announcement brings welcome investment that will secure growth opportunities for blossoming businesses in Glasgow.

“The city is the third-top tech destination outside London and this decision not only recognises this well-deserved accolade, but equally backs the potential of our three innovation districts in engineering, life sciences and advanced manufacturing.”

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The North East will likely use this investment to boost its key sectors of energy and food and drink. “(The funding)  allows us to drive inward investment, encourage new innovation and inject pace as we diversify and grow our regional economy further still.”

“This is a significant vote of confidence in the future of our region, signalling that the north-east is very much open for business, with an exciting future ahead,” he said.