Falkirk Economic Partnership meets to progress Grangemouth investment zone agreement

The partnership, which includes Falkirk Council, the Scottish Government, Scottish Enterprise, INEOS, Forth Ports, CalaChem, Scottish Canals, Forth Valley College and local businesses, sought to understand growth opportunities in the area and how they can be realised.

In December 2015, Falkirk Council launched its 2015-2025 Economic Strategy to set out ambitions for the area’s economy including a proposal to establish an investment zone to realise the area’s economic opportunities in chemicals, energy, logistics and manufacturing.

The Grangemouth Investment Zone proposal aims to expand on the work being undertaken via the Falkirk Tax Incremental Financing (TIF) initiative, enabling a wider programme of assistance, covering measures relating to infrastructure provision, energy and enterprise growth.

Councillor Craig Martin, Leader of Falkirk Council, said: “Our TIF initiative permits investment to be made by the Council to aid economic growth, and generate subsequent tax revenues to reimburse the expenditure incurred. While it is delivering well, we seek the flexibility to create further growth and have had discussions with the Scottish Government regarding our investment zone opportunities.

“Following these recent discussions with Scottish Government and other stakeholders in relation to the development of this project, today’s meeting is another step towards the delivery of the agreement.

“The Scottish Government has indicated willingness to discuss this proposal further with a view to forming such an initiative. We are taking this work forward through this joint agreement.”

Falkirk Council, Scottish Enterprise and a working group involving representatives of the Economic Partnership will be formed to progress this work, reporting back to the Partnership at its next meeting.

Following the meeting, Mr Wheelhouse said: “I met Councillor Martin earlier this year who enthusiastically outlined the opportunities that Grangemouth offered – and I have heard more about these today. We agreed to use the opportunity of this meeting to underline our commitment to working together to unlock the opportunity for future growth.

“Following today’s meeting, we will bring together the Scottish Government and local government to commission work to develop the detail of the opportunities and specific projects that could be supported as part of the Grangemouth Investment Zone.

“Through this work, we want to ensure there is a clear vision for the area, focused on growth driven by local leadership and incorporating all sectors. We want to harness the combined potential of the assets and opportunities across the area. In developing more detailed proposals, we want to ensure that they are linked to the range of potential funding streams and approaches. We will also make sure that there is a clear link to sustainable economic outcomes in jobs and inclusive growth which are also in line with the Scottish Governments’ Economic Strategy.”

Following the meeting, the Scottish Government has agreed to:

Stuart Wallace, chief operating officer for Forth Ports Limited, which owns and operates the Port of Grangemouth and is part of the Falkirk Economic Partnership, said: “The industry in and around the Falkirk and Grangemouth area is recognised as a significant economic driver, not just in the local area but for the wider Scottish economy given its location and global logistics connections. The Port handled £6bn of cargo through the facility last year reflecting the level of economic activity in and around the area. The industrial partners previously welcomed the creation of the Grangemouth Investment Zone within Scotland’s National Planning Framework and the TIF agreement however the initiative launched today has the potential to push this to the next level. Forth Ports and the other industrial partners will continue to work with Falkirk Council, Scottish Enterprise and Scottish and UK Government officials to ensure that we continue to be at the heart of the Scottish economy and to secure long term economic benefit for the area.”

Iain Mitchell, managing director of John Mitchell Haulage & Warehousing, one of the local businesses in the Falkirk Economic Partnership, said: “John Mitchell Haulage & Warehousing has grown up and expanded alongside the growth of Grangemouth as a port and chemicals complex. Whilst we’ve witnessed, and been part of, the success of the area, we welcome the progress being made today. It signals the next stage of economic growth for the area, attracting much-needed jobs and business opportunities.”

Councillor Martin added: “Discussions with UK Government on the proposal are also being pursued and are considered relevant given the significance of the Grangemouth industrial cluster for the UK economy. Similarly, the opportunities for canalside regeneration and tourism have been highlighted by Scottish Canals as a means of diversifying the area’s economic base and it is proposed that this work will also be examined as a means of adding to the investment zone package.”