Edinburgh and South East Scotland City Region Deal Annual Report 2025/26 Approved, Marking Seven Years of Progress

The Edinburgh and South East Scotland City Region Joint Committee has approved the City Region Deal Annual Report for 2025/26, marking the seventh year of delivery on the £1.7 billion regional investment programme.

Read the Interactive Report | Download Accessible PDF Version

The report, approved last Friday, sets out progress across the Deal's portfolio of projects and provides a transparent account of spending, milestones and outcomes for communities across the region. It is available to read online in an interactive format, alongside a downloadable accessible PDF version.

Seven Years of Impact

Since the City Region Deal was signed in 2018, the programme has delivered significant economic benefit across Edinburgh and South East Scotland. Headline figures include:

• £3.9 billion added to the Scottish and UK economy in Gross Value Added

• 34,000 jobs supported

• £1.1 billion in additional funding leveraged

The report brings together a full programme overview, a detailed financial statement for 2025-26, progress summaries for every project in the portfolio, and an outline of milestones expected over the year ahead. It is also accompanied by six new case study videos featuring the people and communities benefiting directly from the Deal's investment.

Major Milestones in 2025/26

The past year saw a number of significant developments across the programme:

• November 2025: The Edinburgh Innovation Hub was occupied, opening its doors to businesses and innovators.

• December 2025: The Joint Committee approved the Final Business Case for the Granton Waterfront Regeneration project.

• December 2025: Construction broke ground at the Dunard Centre.

• March 2026: The Edinburgh Futures Institute received the Civic Trust's Special Award for Reuse and Adaptation.

• March 2026: The Data-Driven Innovation programme won Collaborative Initiative of the Year at the Institute of Economic Development's Annual Awards.

• March 2026: The IRES 27+ campaign launched.

• July 2026: Construction of the Phase 2 building at Borders Innovation Park was completed.

Looking Ahead to 2026/27

The report also sets out a number of milestones the programme is working towards over the coming year, including:

• October 2026 – Delivery of the Scottish Pathways to Construction programme across the region, as part of the IRES Integrated Employer Engagement programme.

• December 2026: The Strategic Outline Business Case for the Tweedbank Strategic Site.

• December 2026: Completion of construction at Tranche 2 of the Levenmouth Business Units (Phase 2) and Tranche 2 of the John Smith Business Park Units project.

• March 2027: The Full Business Case for Borders Innovation Park Phase 3, alongside occupancy of its Phase 2 building.

• Summer 2027: Completion of the Final Business Case for the West Edinburgh Transport Improvement Programme.

Case Study Videos Coming Soon

Starting next week, a series of weekly case study videos will be released drawn from the annual report, each telling the real story of how the programme's investments are making a difference to people and communities across the region.

About the City Region Deal

The Edinburgh and South East Scotland City Region Deal is a 15-year, £1.7 billion investment programme spanning five strategic themes, with £600 million contributed equally by the Scottish and UK Governments. The Deal brings together local authorities, universities and partners from across the region to build a more productive and equitable future for Edinburgh and South East Scotland.

Read the Interactive Report | Download Accessible PDF Version

Edinburgh Innovation Hub Opens to Support Scotland's Next Generation of Innovative Businesses

(left to right) Cllr Norman Hampshire, Leader of East Lothian Council; Mark Cook, Chair of the Edinburgh Innovation Hub; Stephen Flynn; Melanie Ward; Laurence Rockey, Chief Executive, East Lothian Council and Sir Paul Grice, Principal of Queen Margaret University.

Edinburgh Innovation Hub (EIH) was officially opened today by Parliamentary Under Secretary for Scotland, Melanie Ward and Cabinet Secretary for Economy, Tourism and Transport, Stephen Flynn.  

The Edinburgh Innovation Hub is a £40 million joint venture between East Lothian Council and Queen Margaret University (QMU) and will be a nationally significant centre for innovation-driven business growth, creating new high-value employment, and is the anchor project of the planned Edinburgh Innovation Park.  EIH is part of the Edinburgh and South East Scotland City Region Deal (ESESCRD) and is supported by £28.6 million from the UK Government, £1.4 million from the Scottish Government and £10 million from East Lothian Council.

Edinburgh Innovation Hub is led by Chief Executive Marian McNeil, who has overseen the project since March 2025. It offers flexibility of space across a range of Cat 2 laboratories, offices and fully equipped meeting and conference spaces for rent by small to medium enterprises with a particular focus on life sciences, food and drink, tech, start-ups and allied companies and has received significant interest from potential tenants.

The HUB is a best in class innovation facility developed as the first phase of Edinburgh Innovation Park. A new and unique development for innovation-led enterprise adjacent to QMU and minutes by train from Edinburgh City Centre. The HUB is a well-connected base for forward-thinking companies to locate their business. It benefits from its own over-ground station, linking by train to the centre of Edinburgh in just five minutes and 15 minutes to Edinburgh’s airport

EIH welcomed its first tenant, Forge Minerals, in December 2025 followed by Aurora Avionics and Riverwood Ecology. Only this week a new tenant has just signed a lease and will be moving their Life Sciences business with approximately 40 employees into EIH.

Ms Ward and Mr Flynn met representatives from EIH, East Lothian Council, QMU, ESESCRD and the contractor Heron Bros on-site today as well as having the time to meet with the tenants and hear how they have benefited from being based at EIH. They were both particularly interested to hear how each company has already grown, providing additional highly skilled and high value employment in the region. 

Forge Minerals is redefining what’s possible in mineral processing. Their breakthrough approach to producing high-performance magnesium carbonate creates a low-carbon alternative to today’s resource-intensive materials. By uniting cutting-edge engineering and fast-cycle laboratory experimentation, they are building scalable processes designed to sustainable alternative with no green premium. Forge exists to unlock new opportunities for cleaner manufacturing, smarter materials and the next generation of climate-positive technologies.

Forge Minerals is redefining what’s possible in mineral processing. Their breakthrough approach to producing high-performance magnesium carbonate creates a low-carbon alternative to today’s resource-intensive materials. By uniting cutting-edge engineering and fast-cycle laboratory experimentation, they are building scalable processes designed to sustainable alternative with no green premium. Forge exists to unlock new opportunities for cleaner manufacturing, smarter materials and the next generation of climate-positive technologies.

Ian Spencer, Forge Minerals CEO said:

“Opening our first laboratory in the new Edinburgh Innovation Hub is an important milestone for Forge Minerals. As we ramp up our testing and development programme, we need a purpose-built space that allows rapid experimentation, iteration, and technical validation. EIH offers exactly that—along with the crucial ability to scale our footprint as we grow. For a fast-moving startup, being able to expand within the same facility is invaluable. We’re proud to be the first tenant to launch a lab here, and we’re excited to work with EIH to advance the technologies that will underpin sustainable minerals for the future.”

Aurora Avionics designs and manufactures modular, scalable avionics systems for launch vehicles and satellites. The company works with European and APAC customers including DLR (German Space Agency), TASA (Taiwanese Space Agency), Pangea Propulsion, HyImpulse, ATMOS Space Cargo and Alpha Impulsion. Aurora Avionics’ modules are light, robust and enabled to plug and play with other hardware. The company is a key player within the burgeoning Scottish Space scene and has grown their team since moving into EIH.

RiverWood Ecology Ltd. is a specialist freshwater ecology consultancy and aquatic invertebrate laboratory, founded in 2017. They help organisations understand, protect and restore UK rivers, lochs and wetlands through robust ecological evidence. RiverWood combines taxonomic expertise with rigorous quality control to turn complex biological data into practical insight. Their services span field surveys, water-quality monitoring, laboratory identification, data analysis and clear environmental reporting. This work supports conservation, habitat restoration, pollution investigations, environmental assessment and regulatory decision-making. They work with environmental charities, regulators, consultancies, infrastructure and water-sector clients throughout the UK.

Rachel MacKay-Austin, CEO said: “At the Edinburgh Innovation Hub we are expanding our specialist laboratory capacity and helping advance science-led solutions for freshwater biodiversity”.

Councillor Norman Hampshire, Leader of East Lothian Council, said:

“I’m delighted that the Edinburgh Innovation Hub has welcomed its latest tenant and wish them all the best for a bright and successful future.

“East Lothian is one of Scotland’s fastest growing areas and the council is determined to further grow the local economy and help deliver more high-quality jobs in skilled sectors for our residents.

“Working together with our partners at QMU, the creation of the EIH is already attracting innovation-led enterprises to the region to help realise our aim of making East Lothian the best place in the country to live, work and do business.

“The major investment in this project by the council and UK and Scottish Governments will bring benefits to the county for generations to come.”

Sir Paul Grice, Principal and Vice-Chancellor of Queen Margaret University said:

“The official opening of the Edinburgh Innovation Hub is a landmark moment for Queen Margaret University, Edinburgh and our partners, and the establishment of the Hub is a major step forward in our ambition to foster innovation, entrepreneurship and collaboration. Located alongside our campus, the Hub will strengthen links between academia and industry, creating new opportunities for research, knowledge exchange and partnerships that deliver innovative solutions to real-world challenges.

“We are proud to be at the heart of this transformational venture. Acting as a gateway to QMU for the businesses based there, the Hub will help drive investment, support job creation and generate lasting economic and social benefits for East Lothian, the Edinburgh city region and beyond, while enhancing opportunities for our students, graduates, researchers and partners.”

UK Government Minister for Scotland Melanie Ward said:

“The opening of the Edinburgh Innovation Hub is a vital step in backing Scottish innovation and building a modern, resilient economy. Significant UK Government investment of over £28 million is giving startups the specialised lab space they need to accelerate breakthroughs, scale up quickly, and create high-skilled jobs across the region.

“This project shows the tangible impact of targeted UK Government support. While the Hub acts as a flagship engine for the regional economy, its impact links directly into communities right across Scotland.

“By connecting cutting-edge innovation with national supply chains – from Scotland's space sector to freshwater ecology – we are using targeted regional investments to bring growth, high-skilled jobs, and economic opportunities to every postcode across Scotland.”

More information on the Edinburgh Innovation Hub is on the website.

£37.8m UK Government Local Growth Fund provides Green Light for Major New Housing and Green Skills Hubs

Five new skills training centres across South East Scotland are to be created with £25m of UK Government funding, it was announced today.

The investment is part of an overall award of £37.8m for Edinburgh and South East Scotland City Region from the UK Government's Local Growth Fund and will support future housing delivery, retrofit and green economy jobs in the region. Additionally, the funds will drive regional employability and business growth initiatives, while financing transport planning and research into the impact of AI.

The UK Government has now released £14.09m to Edinburgh and South East Scotland Regional Partnership after signing off on its locally designed three-year Local Growth Fund investment plan, which targets areas with the lowest household incomes to create jobs and boost living standards. Funding for Years 2 and 3 will be rolled out as the region progresses through its plans.

Scottish Secretary Douglas Alexander said: "Today the UK Government is releasing more than £14 million to Edinburgh and South East Scotland partners who know their communities best.
 
“These funds will be crucial for addressing skills shortages, driving green innovation and removing barriers to local employment and infrastructure development.
 
“The UK Government is committed to empowering local communities by spreading power throughout the country. These funds will support local leaders throughout Scotland to create skilled jobs, help start up businesses and revive our local high streets."

Mr Alexander visited the West Lothian College Campus today, to launch the UK Local Growth Fund, see the site of the future training facility and meet students. 

A partnership between the four regional colleges of Borders, Edinburgh, Fife, and West Lothian plans to train over 20,000 new entrants across the region over the coming decade as well as upskill existing workers.

South East Scotland is the fastest growing region in Scotland, with some of the highest housing demand for now and into the future. The new training hubs will be strategically important in the delivery of 40,000 new homes across the region’s seven strategic housing sites.

The training centre in the South of Scotland will also benefit from Scottish Government funding through the Borderlands Inclusive Growth Deal.

Cllr Norman Hampshire, Convener of the Edinburgh and South East Scotland City Region Partnership, said: “These training centres will empower thousands of residents across the region to upskill and launch high-quality careers in construction and green technologies like solar and heat pump installation.”

According to a report undertaken by the University of Edinburgh and West Lothian College, the region has a construction workforce of 57,000, of which 21,000 (34%) commute for work into the region from other parts of Scotland daily. The study identified that the region requires an additional 20,000 new entrants, upskilling roles and replacement construction workforce over the next 10 years.

The development bid proposal for the Housing and Net Zero Accelerator Hub (HaNZAH) training centres was jointly led by Simon Earp (Vice Principal at West Lothian Collage) and Professor Sean Smith (Chair of Future Construction at the University of Edinburgh).

In a joint statement the lead bid developers wish to acknowledge the support, input and consultations involving a wide range of key stakeholders from across the region. These included the bid proposal steering group involving construction, engineering and vice principal staff at Edinburgh College, Fife College, Borders College, West Lothian College and HCI Skills Gateway led by Edinburgh Napier University.

The underpinning data was supported by Fast Followers programme funded by Innovate UK and HCI Skills Gateway which assisted in reaching over 150 organisations including SMEs, public bodies, training providers and community groups. The analysis, presentations and reports were supported by the Centre for Net Zero High Density Buildings (CeNZ-HighDB) funded by UKRI.

The outline bid proposal was presented to a range of regional committees, which all provided valuable feedback and input, involving the IRES Board, HE-FE Committee, Regional Housing Board, Elected Members Oversight Committee (EMOC), Regional Enterprise Council, Joint Committee, Directors’ Group and the Executive Board involving senior executives and Leaders from the regions six local authorities.

Finally, the HaNZAH bid development team and steering group wish to acknowledge the excellent support throughout the bid development process from the Programme Management Office team based within the Edinburgh and South East Scotland City Region Partnership.

Major construction milestone met as Dunard Centre foundations are laid

Piling works are now concluded and excavation work has begun on the building’s basement

A major construction milestone as the structural base that will support the world-class venue is now complete.

244 piles have been installed in the ground at the site at St Andrew Square,  revealing the full footprint of the hall for the first time. The next phase will see construction partner, Balfour Beatty, begin excavation works to create the building’s 10-metre-deep basement level. This will involve the removal of around 36,000m³ of material – the equivalent to around 480 double decker buses, or 2,750 grand pianos.

In another significant milestone, one of the two tower cranes required for the project has now been installed, creating a striking visual marker of the on-site progress. Works are progressing on time and to budget, with practical completion of the world-class venue expected in 2029.  

Jo Buckley, Chief Executive of the Dunard Centre, said: 

“Anyone who has passed by our site over recent months will have noticed the daily arrival and departure of trucks and machinery, and a regular hum of activity as the groundworks have progressed. To see such a rapid transformation of this long-empty site has been incredibly exciting to watch, and I am grateful to Balfour Beatty’s team for their swift and efficient progress during this first chapter. This is not just a construction project, but a long-term commitment to people and communities, and it has been inspiring to see so many opportunities for education and skills development underway already. We look forward to sharing more of these initiatives as the project unfolds.” 

The progress on site runs parallel to a series of initiatives and activities delivered by Balfour Beatty designed to maximise opportunities for education, skills development, community engagement, and local economic growth. So far, this has included collaborating with Developing the Young Workforce (DYW) and local schools to deliver STEM engagement and career support days for 400 young people, conducting site visits with University of Edinburgh and Napier University engineering students, and providing volunteers to support the Cuthill Community Garden, supporting the early creation of a pollinator-friendly, community-led green space. The firm also partnered with Equate Scotland on events to address gender inequality within STEM by supporting women at all stages of their career journey into, and within, the construction sector.

Martin McGough, Project Director at Balfour Beatty said:

“Reaching this milestone is a testament to the expertise and determination of our teams, who have successfully navigated a highly constrained and complex environment in the heart of Edinburgh to keep delivery on track. As we move into the next phase, we look forward to continuing to apply that capability to deliver the next stage of this landmark project.” 

These activities support the significant social and economic impact that the Dunard Centre will have, both during its capital phase and as an operational venue. 

City Region Deal continues to boost jobs, investment and growth in Fife

The Edinburgh and South East Scotland City Region Deal is continuing to deliver strong results for communities across the region.

Now valued at over £1.6 billion, the city deal remains the largest additional investment secured by any Scottish city region or growth deal. It is helping to grow the local economy, improve key infrastructure and support the development of sustainable communities.

So far, the programme has created more than 22,000 job opportunities, delivered over 5,500 new homes, and contributed over £2.8 billion in Gross Value Added (GVA) to the regional economy.

As part of the Deal’s innovation strand, Fife is benefitting from a ten‑year £59 million Industrial Innovation Investment programme, known as the Fife i3 Programme. This programme is helping to expand the supply of modern business space and serviced employment land across Mid and South Fife.

New business units totalling 6238 sqm have already been built in Glenrothes, Kirkcaldy, Levenmouth, Dalgety Bay and Dunfermline, supporting 215 jobs to date. In addition, 6.58 hectares of employment land has been serviced, with some sites sold to the private sector in Dalgety Bay, Dunfermline and Lochgelly.

The latest phase of work will see even more new units delivered in Glenrothes, Levenmouth and Kirkcaldy, alongside further site‑servicing projects in Levenmouth and Kirkcaldy.

The programme gives priority to businesses that demonstrate innovation and are committed to Fair Work, the Real Living Wage, and Low Carbon policies, helping to ensure high‑quality employment and long‑term economic resilience in Fife.

Councillor Altany Craik, spokesperson for finance, economy and strategic planning, said he was delighted to see the new units open for business:  “The Fife i3 Programme is all about creating conditions for start-ups and SMEs (small/medium-sized enterprises) to grow and innovate, and with that comes direct and indirect employment, increased demand for local services, and major benefits for supply chain businesses both here in Fife but across Scotland more generally"

Fife Council’s Economic Development team has led the development and promotion of the new units and employment land, working to secure new occupiers and attract inward investment to the Business Park.

For more information, visit www.investfife.co.uk or email fifemeansbusiness@fife.gov.uk.