Levelling Up Secretary Michael Gove has confirmed the UK Government intends to bring forward two investment zones in Scotland.
The senior Tory, who hails from Aberdeen, would not be drawn on the city’s chance of success while speaking to journalists at his party’s conference in Glasgow.
Similar to freeports, investment zones would be focused in a city or region and offer companies tax breaks in the hope of spurring on growth.
They were heavily promoted by Liz Truss during her brief tenure in power as a consolation prize for areas which failed to win a freeport.
Mr Gove told the Press and Journal he will be talking to the Scottish Government “about two investment zones to be built in Scotland”.
In March, UK Chancellor Jeremy Hunt set out plans for 12 new investment zones.
Eight areas in England have already been shortlisted and the UK Government was said to be in discussion with devolved administration over the four final locations.
Now, it has been confirmed the government intends to award a second investment zone in Scotland, raising hopes from prospective sites across the country.
‘I can’t speculate’
Mr Gove said he could “not speculate” on whether Aberdeen could benefit, following its green freeport snub earlier this year.
Both Dundee and Glasgow are said to be interested in securing investment zones.
The levelling up secretary met with Deputy First Minister and Finance Secretary Shona Robison, during a trip north of the border on Friday.
“We will be talking to the Scottish Government about two investment zones to be built in Scotland”, Mr Gove said.
“We want to make sure the locations that we identify are areas which have got a strong university or higher education or research institution ideally.
“A specialist cluster of expertise whether that’s net zero energy or life sciences or another area. And also that we have willing partners on the ground.
“The Scottish Government seemed very keen on building on the success of green freeports to work with us on where the investment zones would be.
“But it’s still at an early stage so I can’t speculate about location. When we do announce who we’re going to be working with, we’ll be doing it jointly with the Scottish Government.”
Do investment zones have support?
Those in favour of investment zones claim they will help fuel job creation by encouraging more businesses to regions such as the north-east.
Each of the winning regions will be given £80 million to spend over a five-year period.
Aberdeen Port, who were heavily involved in the city’s failed bid for green freeport status, are in favour of the special economic areas.
They have raised the matter with senior figures from both the Scottish and UK Governments. Aberdeen University is also keen to participate if the opportunity arises.
However, the Scottish Greens have concerns investment zones will lead to lower wages and erode worker’s rights if they are low tax and low regulation areas.
A Scottish Government spokeswoman said: “The deputy first minister and cabinet secretary for finance met with Mr Gove yesterday to discuss a number of topics, including investment zones.
“It was a helpful meeting, and constructive discussions will continue between the Scottish and UK Governments as plans develop.”