The City Deal was signed by Councillor Gordon Matheson, Leader of Glasgow City Council, Danny Alexander MP, Chief Secretary to the Treasury, Derek Mackay MSP, Minister for Local Government and Planning, Greg Clark MP, Minister for Universities, Science and Cities and leaders of the other participating local authorities.
The City Deal will fund major infrastructure projects, drive innovation and growth through the support of key sectors such as life sciences, and address challenges in the region's labour market. These projects will allow a programme of work which will greatly add to the value of the local economy over the next 20 years.
The UK and Scottish Governments will each give the City Region £500million in grant funding, and the local authorities will borrow a further £130million.
The City Deal is expected to give the City Region a permanent uplift in its GVA of £2.2billion per annum (4.4%); generate 15,000 construction jobs during the construction period and 28,000 permanent additional jobs once construction is complete; and will unlock £3.3billion of private sector investment.
Councillor Gordon Matheson, Leader of Glasgow City Council, said: "The signing of this City Deal is a momentous day for the Glasgow City Region. The benefit this funding will bring to our infrastructure, economy and labour market will be felt for decades through tens of thousands of new jobs and increased competitiveness. I look forward to working with all of our partners to deliver this hugely important project in the years to come."
Danny Alexander, Chief Secretary to the Treasury, said: "This is fantastic news for residents of the city and the Clyde Valley region, as it means those who know Glasgow best - the people who live and work here - can decide where this investment can benefit them and their families most.
Local Government and Planning Minister Derek Mackay said: "As our largest city Glasgow is central in driving economic growth. That is why the Scottish Government has agreed to invest £500 million in a city deal for Glasgow and the Clyde Valley that delivers significant benefits for the region and Scotland as a whole. Through the Scottish Cities Alliance we are exploring opportunities for all Scotland's cities.
"The funding will create jobs and help cement Glasgow's position as one of Europe's leading cities with a vibrant, thriving economy. "We have also provided capital funding of £1.1 billion to Glasgow City Council since 2008 and in addition, we have invested £1.5 billion in the Commonwealth Games, the new Southern General hospital, Fastlink and the Glasgow Subway improvements."
Greg Clark, Minister for Universities, Science and Cities, said: "The Glasgow and Clyde Valley City Deal is one of the most significant deals we have agreed. It places Glasgow in the vanguard of the UK's great cities who are driving forward the economic success of their areas with the encouragement and support of the Government. "Innovation, transport infrastructure, business support, investment in life sciences and skills for young people are all essential foundations for jobs and prosperity, which are being enhanced by this historic City Deal today."
The leaders of the seven other local authorities participating in this City Deal also signed - in attendance at an event at Glasgow Science Centre were: Rhondda Geekie (East Dunbartonshire Council); Jim Fletcher (East Renfrewshire Council); Stephen McCabe (Inverclyde Council); Jim McCabe (North Lanarkshire Council); Mark Macmillan (Renfrewshire Council); Jackie Burns (Deputy Leader, South Lanarkshire Council) and Martin Rooney (West Dunbartonshire Council).
The City Deal was developed by officers from the eight participating local authorities in the Glasgow City Region and other local partner organisations.
Glasgow City Region is critical to the UK economy as it is the heart of the economy of Scotland. The region has:
The component parts of this City Deal agreement are:
An Infrastructure Fund - based on the proposal developed by the Clyde Valley Authorities (excluding East Dunbartonshire) for a programme of investments over 20 years valued at £1.13billion.
Funding for Labour Market Programmes - detailed discussions were held on labour market policy, with a view to introducing new ways of working to assist specific groups identified as suffering greater disadvantage in the labour market.
Funding for Innovation and Growth - Business Cases are being finalised for three projects which will support new business creation in Life Sciences across the region and a new facility which will accommodate young companies and help them grow.
The eight local authorities collaborate on strategic issues through the Clyde Valley Community Planning Partnership, which has as its vision a city region ideally positioned to meet the challenges of the next 20 years, becoming more outward-looking and better connected to European and global markets.
The characteristics of the City Region would include a strong growing core in Glasgow, but able to exploit growth opportunities across the region, reducing economic inequality, and a highly skilled and entrepreneurial workforce able to engage fully with the labour market.
A key aim is for the City Region to be seen as one of Europe's leading destinations of choice for residents, businesses, visitors and investors. In addition, the local authorities have been developing a more strategic approach to infrastructure planning and investment and have been working on the Clyde Valley Infrastructure Fund, which is at the heart of this City Deal.