A furious councillor has raised serious concerns over the Ayrshire Growth Deal after North Ayrshire scaled back its commitments.
Robert Foster recently highlighted that the local authority has reduced land earmarked for manufacturing by a third.
Advanced manufacturing space at i3 Irvine has been reduced to 97,000 sq ft from the 150,000 sq ft detailed when the £251 million agreement was signed in November 2020.
Inflation and supply chain issues have created a stumbling block for local authorities and North Ayrshire Council has decided to scale back this project rather than invest more money.
Irvine councillor Robert Foster said: "Projects within the Ayrshire Growth Deal are being scaled back at an alarming rate due to the UK and Scottish Government’s response to the current cost crisis.
“Both governments' insistence that their financial contribution to the Growth Deal is a fixed sum means all the risk lies with the three Ayrshire Councils. With rising costs, the councils face two options - invest more of their own money into the projects or cut them back.
“The latter is what’s happened with the project to construct new business space at i3 in Irvine, with over a third of the proposed business space already cut.
“Unless the UK and Scottish Governments recognise that costs are increasing and provide additional funding, then the potential for the Ayrshire Growth Deal to transform the regional economy will be significantly watered down, leaving Ayrshire’s economy and its people behind once again."
However, councillor Tony Gurney defended the decision to scale back.
The economy portfolio holder said: ”There is an inflation crisis in the county that applies to everyone and it is not just cost of living for people but it’s for businesses and councils.
“It’s quite right that a fixed project where the costs are going up can only deliver less.
“Can I suggest to him that when his group signed the deal it was something they built into it.”
A Scottish Government spokesperson added: “The Scottish Government committed to invest £103 million in the Ayrshire Growth Deal, matched by the UK Government and with contributions from regional partners, the overall Deal investment reaches £251 million across 17 transformative projects.
“This commitment remains in place, and the Scottish Government will continue to work alongside regional partners as they develop innovative approaches to ensuring all projects are delivered, bringing benefits to the region, despite the challenging circumstances brought about by the cost crisis.
“We are investing in regions and communities across Scotland to create jobs and deliver inclusive economic growth.”
A UK Government spokesperson also said: "The UK Government is investing £103 million in a 10-year programme that is expected to bring in £300m of ‘additional private-sector investment and 7,000 new jobs across Ayrshire.
"We are working closely with the Scottish Government and regional partners on all the projects to maximise the benefit to local communities."
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