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Official Report: search what was said in Parliament

The Official Report is a written record of public meetings of the Parliament and committees.  

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Dates of parliamentary sessions
  1. Session 1: 12 May 1999 to 31 March 2003
  2. Session 2: 7 May 2003 to 2 April 2007
  3. Session 3: 9 May 2007 to 22 March 2011
  4. Session 4: 11 May 2011 to 23 March 2016
  5. Session 5: 12 May 2016 to 5 May 2021
  6. Current session: 12 May 2021 to 5 August 2025
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Displaying 798 contributions

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Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Gordon MacDonald

As you are aware, the Scottish Affairs Committee started an inquiry into the same area, which then had to be cancelled because of the election. A submission to that committee quite clearly refers to the “data-driven innovation programme”, which is all about the supercomputer. You are saying that funding is safe, yet you have pulled £800 million.

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Gordon MacDonald

If the funding situation that you inherited from the previous Government was so bad, can you tell us where you found the £14 billion for the announcement on AI that was made by Keir Starmer on Monday?

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Gordon MacDonald

So there is no Government money in that whatsoever?

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Gordon MacDonald

That is why the supercomputer at the University of Edinburgh was so important. There are only two known exascale computers in the world, both in the US. The Edinburgh one would have been the third. Edinburgh has been the home to high-performance computing for more than 30 years. It would make sense for it to be located here, yet we are hearing, as Willie Coffey indicated, that the first AI growth area will be in Oxfordshire, the home to the Atomic Energy Authority.

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Gordon MacDonald

Before I ask others to contribute, value engineering is about looking at alternative building methods, different materials and so on. Is there any impact on the potential outcomes that are expected from that project?

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Gordon MacDonald

Following on from Willie Coffey’s line of questioning, you have indicated previously that the funding for the city deals is safe and that no money has been withdrawn from the city deals. However, the supercomputer that was going to be built at the University of Edinburgh was part of the Edinburgh city deal, so what happened to that £800 million?

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Gordon MacDonald

Do you know the timescale for what will happen in Edinburgh?

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Gordon MacDonald

Of course, the cost of delivering any project is impacted by construction inflation. Since 2020, construction inflation has increased by 20 per cent and it is expected to increase by a further 17 per cent by 2029. All the construction projects are impacted by Brexit, Covid, the conflict in Ukraine and the cost of living increase, yet the UK Government’s contribution is fixed. Why should local authorities pick up the inflationary aspect, or are you happy to see projects being descoped because of a lack of funding?

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Gordon MacDonald

They call it value engineering.

Economy and Fair Work Committee

City Region and Regional Growth Deals

Meeting date: 15 January 2025

Gordon MacDonald

I will change the subject slightly. City deals are supposed to be regional economic growth deals. Can you say anything about how much uptake there has been in local supply chains in the work on projects? Local companies use local tradespeople and local services, and they have their own supply chains of materials and so on, and it is important that we try to retain as much profitability from these projects within the local area. How much of the project in the SOSE area has been retained within the local supply chains?