Council chiefs have written to the first minister calling for a new government agency to be set up in Aberdeen to mitigate the effects of the oil industry downturn.
Council chief executive Angela Scott has penned the letter to urging Nicola Sturgeon to base the new Scottish Benefits Agency in the north-east.
The department will take charge of £3billion of welfare spending north of the border including support for the unemployed, the carers’ allowance, the disability living allowance, cold weather payments and housing payments.
It has been ushered in by the Scotland Act 2016, which gives the Holyrood parliament further devolved powers
It is believed as many as 300 jobs could be created through the agency and the council estimates a further 100 additional
private sector jobs could result.
At the last full city council meeting, members voted for Ms Scott to send the letter.
It reads: “The benefits of locating government departments or agencies away from administrative centres such as London, or Edinburgh/Glasgow are well documented.
“For Aberdeen, we believe that our overall inward investment proposition would be significantly enhanced in the event of setting up the new Scottish Benefits Agency here or relocating to the city any existing government agency.
“Our own initial estimates suggests this development could deliver around 100 additional jobs, as well as providing much needed opportunities for existing skilled residents among the 300 direct jobs.”
A Scottish Government spokesman said last night that a decision was still to be made on where the new agency will be based.
He said: “The transfer of some limited responsibility for social security to the Scottish Parliament gives us a real opportunity to transform the service people receive and to provide the protection and support that individuals need.
“Our new Scottish social security agency will be the flagship organisation that oversees the delivery of benefits in Scotland.
“We are not yet at the stage of making a decision on the location of the agency, and there will be many potential locations to consider the length and breadth of Scotland. We will continue to engage with stakeholders, including local authorities, as the business case for the new social security agency is developed.”
