The £1.13bn City Deal, the biggest of its kind in the UK, 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.
Ministers have now approved an assurance framework and the UK and Scottish Governments will each give the City Region £500million in grant funding. 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.
Specific plans for individual projects within the City Deal will now be developed.
Councillor Gordon Matheson, Chair of the Glasgow and Clyde Valley Cabinet, said: "Securing this deal for the region was a momentous achievement.
"This funding will bring benefits to our infrastructure, economy and labour market for decades to come by creating tens of thousands of new jobs and increasing our global competitiveness.
"The work can now begin and I look forward to collaborating with all of our partners to deliver this hugely important project."
Infrastructure Secretary Keith Brown said: "I am delighted to be able to endorse the assurance framework for the Glasgow and Clyde Valley Deal ahead of the official commencement of the City Deal next week. As our largest city, Glasgow and the surrounding region is central to driving economic growth. We fully support the deal and the principle of local decision making.
"The Scottish Government is investing £500 million in this deal and the Glasgow Clyde Valley partners aim to use it to secure a further £3.3 billion of private sector investment. The importance of the assurance framework cannot be overstated, it means the investment programme will be constructed and managed to deliver the positive economic outcomes set out in the deal.
"Through the Assurance Framework, Glasgow and the Clyde Valley partners will work with, and build on, expertise from the likes of Scottish Enterprise, Skills Development Scotland, Transport Scotland and the further education sector, to ensure this Deal is developed in a co-ordinated way. Glasgow and Clyde Valley partners will ultimately be responsible for the funding decisions they take, however this agreement unlocks funding by the Scottish and UK Government to allow partners to get on with delivering the deal."
Chief Secretary to the Treasury Danny Alexander said: "This government created City Deals to give cities across the UK the freedom they need to create jobs, fund infrastructure and boost economic growth, and I'm delighted that I've been able to sign off this major step in Glasgow's City Deal.
"The UK Government's investment of £500 million is a great deal for people in Glasgow and beyond: the Local Authorities involved in the deal estimate that it will boost the city's GVA by 4.4%, bringing billions of pounds of private sector investment and jobs to the city and Clyde Valley, demonstrating the value of central and regional governments working together to create a stronger economy and fairer society across the UK."
Greg Clark, Minister for Universities, Science and Cities, said: "The Glasgow City Deal is a key part of our long-term economic plan to create jobs and growth in every part of the United Kingdom. Its significance cannot be underestimated, not just because of the £1 billion of extra investment, but more significantly the control that will be given to this great city over its own destiny. New infrastructure, better skills, thriving businesses - this is the foundation for Glasgow to become a real powerhouse on the global stage in the years to come."
The eight local authorities participating in City Deal are Glasgow City Council, East Dunbartonshire Council, East Renfrewshire Council, Inverclyde Council, North Lanarkshire Council, Renfrewshire Council, South Lanarkshire Council and 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: