Prime Minister David Cameron visits the city today to formally announce the deal, which will see £250m invested in Aberdeen by the UK Government, with the Scottish Government expected to announce a further £254m for infrastructure in Aberdeenshire.
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It is understood he will not pre-empt George Osborne’s March Budget today but his presence is meant to send a clear message to oil firms reviewing their operations in the North Sea that the UK Government is considering additional financial support.
“We need action which will help in the short, medium and long terms”.
But he warned that it would have been “a very, very dark day indeed” if prices had dropped this much and Scotland had voted for independence in 2014.
Mr Cameron is due in Aberdeen today to make an announcement on further UK Government measures – reportedly possible tax concessions – to safeguard oil and gas sector jobs.
He told the House of Commons on Wednesday: “I’m determined we build a bridge to the future for all those involved in the North Sea”.
“I know it’s a very tough time for people who work in the industry and their families, and I am determined that the UK Government will do what it can to support them”.
Mr Mundell said the deal was only the second in Scotland and followed the success of a city deal for Glasgow. Greater digital connectivity and support for growing pharmaceutical and agri-food industries are also promised.
Ms Sturgeon said Finance Secretary John Swinney would seek an urgent meeting with the Chancellor to set out the Scottish Government’s view.
Aberdeen City and Aberdeenshire councils submitted a bid for a deal worth £2.9bn over two decades past year.
Oil and gas production in Britain rose by over seven percent last year, the first increase in over 15 years, trade body Oil & Gas UK said this month.
“We’re going to help the sector export its world-class expertise. We have seen in Glasgow the extra jobs and growth that this kind of deal can bring, and I want to see the same achieved in and around Aberdeen”.
He also indicated that he would be “saying more” tomorrow about what help could be given to the industry. We’ve announced #1.3 billion of support past year for the North Sea.
According to a press release from the Scotland Office, the aim of the initiative is the adoption of a formal memorandum of understanding between Aberdeen and Pemba underpinned by an action plan designed to help Pemba create a local oil and gas hub based on the Aberdeen model.
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The funding will also help with the expansion of Aberdeen harbour, enabling the city to compete for decommissioning work, ministers said.
