State of the City Economy Conference

On Friday, 6 December 2024, Glasgow’s business and economy community gathered for the annual State of the City Economy Conference. Now in it’s 26^th iteration that event is a chance for the public and private sector, higher and further education, the third sector, Glasgow City Council and government to reflect on the past 12 months and look forward to what the next year will bring.

Alongside Councillor Susan Aitken, Leader of Glasgow City Council, speakers included:

• Tom Arthur, MSP, Minister for Employment and Investment of Scotland
• The Rt Hon Ian Murray MP, Secretary of State for Scotland (by video)
• Marvin Rees, former mayor of Bristol 

Hosted by Greg Clark CBE, FAcSSA and Global Advisor on Cities. 

Councillor Susan Aitken opened the State of the City Economy Conference with a keynote speech touching on  many of the key discssion points that we hear in Glasgow right now. 

Opinions about Glasgow abound but the city is evolving; it’s a multifaceted, living thing. In this speech she describes a fuller, broader snapshot of where the city and city region economies stand in this particular place and time – things that makes you think a bit differently about where Glasgow is and where we’re going. Key points are summarised below.

 Metro City Region

That future is firmly metropolitan. We celebrated 10 years of the City Deal this autumn which has heralded a new way of thinking about long-term investment across our City Region bringing together a strategic partnership for innovation between democratic government, business and academia. 

A call to recognise and respond to metropolitan Glasgow as vital to the UK and Scottish economies and devolve powers and create parity with other metropolitan regions. 

Despite current barriers (Brexit, the pandemic or the cost-of-living) Glasgow delivers on its commitment to be the most innovative, resilient and inclusive regional economy in the UK:

• over the last 10 years, the City Region’s economy has grown by 44%, considerably higher than the growth in the overall Scottish economy.
• annual total export values across the City Region of almost £14.3bn while increasing by nearly 30,000 the number of jobs across the Professional, Scientific and Technical sectors.
• Glasgow continues to buck a UK-wide trend with a growing population in the crucial 25 to 44 age group.
• Glasgow is the third city region within the UK Government’s £100m Innovation Accelerator programme. 

Digital Connectivity

Improving digital connectivity continues to unlock growth across the region and in the past year:

• almost 400,000 more premises secured access to Full Fibre.
• second highest percentage of premises with access to Ultra-Fast Broadband of the UK’s Core City Regions.
• successful bid to the Department of Science, Innovation and Technology to become a 5G Innovation Region

People and Skills

• Now a UNESCO City of Lifelong Learning
• Continue to engage with the Scottish Government on the implementation of the Withers Report on the regionalisation of skills infrastructure, to respond to our specific needs.
• Living Wage Place Campaign launched this year, and we continue to promote fair pay and inclusive growth.
• Social Innovation Challenge Fund will help unlock the potential of women and BAME residents who face barriers to becoming successful entrepreneurs.

Infrastructure

We continue to address our connectivity deficit to ensure all citizens are able to access work, education and social and leisure opportunities. 

The Clyde Metro continues to progress as a vehicle for fully integrated mass transit system and is recognised as a key priority for future transport investment. Major announcements to come in the new year include potential network options, options for modes, locations, and opportunities for integration with other transport services. 

Development

Activity is increasing and planning applications are returning to pre-pandemic levels.

Major developments approved in 2024 include:

• the landmark Marks and Spencer building on Sauchiehall Street;
• plans for over 1,000 homes on the Clyde at Yorkhill Quay; and
• the Ard (former Portcullis House on India Street) will be Glasgow’s tallest building.

Recent completions include:

• JP Morgan HQ on Argyle Street;
• Candleriggs Square; and
• The Social Hub. 

With suggestion of a return to on-street retail, we're continuing discussions with the owners of Buchanan Galleries, Princes Square and the St Enoch Centre about their redevelopment and investment plans and new brand offers. 

Next year will see a big acceleration of the City Deal-funded Avenues, including the start of works in George Square. 

Stepped-up city centre responsiveness includes:

• A new City Centre Improvement Grant Fund to support new use in vacant properties by start-ups or third sector organisations
• Funding minor repairs and improvements to shopfronts or public spaces.
• City Centre Rapid Repairs pilot programme will ensure a quick response to small-scale but high impact public realm issues.
• Preparing to use existing powers to compel owners to look after their buildings, particularly those of architectural and heritage standing, or which are occupying key sites and have been left vacant too long. 

Housing and Net Zero

In the last 18 months we have brough almost 1,000 empty homes back in to use, while our lobbying of the Scottish Government resulted in substantial additional funding to step up that acquisitions programme across the city. 

The delivery of housing across all tenure types was 17% higher than anticipated in the year to April, bolstered by the Build-to-Rent sector pipeline. 

At the same time, patient capital partnership models between local authorities and institutional investors can complement ongoing public sector investment in the transformation and regeneration of places. Discussions about alternative investment approaches are opening new possibilities for some of our challenging sites while also bringing expertise and resource. 

Institutional investment will also be critical to our pathway to Net Zero and the Council has invested £4m to build the capacity and skills we need to create robust Climate Investment Vehicles that will enable us to go to the market and secure appropriate partners. And with our partners at 3Ci we continue to develop place-based models for the implementation of essential Net Zero measures, including transition to renewable source heat and energy retrofit of housing stock within Glasgow communities. 

Global City

 Our international profile has never been higher nor our global connectivity stronger we’ve launched Glasgow’s International Strategy – Team Glasgow’s route map for engagement in the global marketplace. 

• For the third year in succession, global investment consultancy Resonance has included Glasgow in its World Top 100 Cities – the second placed of only three UK cities.
• £800m in FDI attracted into the City Region in the year up to November.
• A trusted and popular destination for national and international
• Conferences hosted more than 120,000 delegates in 2023.
• We remain a formidable partner for events and creative industries (including screen)
• Glasgow will again be in the spotlight as the host city for the 2026 Commonwealth Games. 

Glasgow 850

Glasgow’s 850th anniversary promises to be quite the celebration. It will also be a time to take stock, to look back at our journey over the decades and bolster our vision of the city we’re striving to become. 

As well as the dynamic economic engine we’re discussing today, Glasgow is also a home, the place of people’s lives and memories. Not just a city but a state of mind. 

Our new transition is about taking the best of Glasgow’s history and the best of what Glasgow is now and combining them - to drive ambition and optimism for Glasgow’s next 50 years. 

Joining Cllr Aitken and Marvin Rees for the panel session were:

• Erika Lewis, Chief Executive Officer, Connected Places Catapult

• Louisa Macdonell, Director Scotland, Business in the Community
• Stuart Patrick CBE, Chief Executive, Glasgow Chamber of Commerce