Highland Council opens talks on growth deal to follow City-Region Deal

The Highland Council has agreed to begin formal engagement with the Scottish and UK governments on a new Growth Deal for the Highlands, which it said could unlock an estimated £10bn to £16bn of public and private investment over 25 years.

The council said on 29 October that the proposed deal would bring its existing strategic initiatives and partnerships under a single framework. Investment linked to renewable energy, electricity transmission, ports, housing, transport, digital connectivity, workforce development and the Inverness and Cromarty Firth Green Freeport could reshape the Highland economy, it said.

An initial investment framework sets out eight priority areas, with enabling infrastructure and connectivity listed first. The others are housing and community sustainment; energy transition and industrial opportunity; skills, workforce and fair work; business growth, innovation and inward investment; community wealth and social infrastructure; climate resilience, land and natural capital; and culture, creativity and identity.

Cllr Raymond Bremner, Leader of The Highland Council, said: "This is a critical time for the Highlands, with both the Scottish and UK Governments considering future spending priorities, economic growth and infrastructure investment, alongside ongoing discussions on public sector reform."

Building on the City-Region Deal

The council said the proposed deal would build on the Inverness and Highland City-Region Deal, a joint initiative of the UK and Scottish governments, The Highland Council, Highlands and Islands Enterprise and the University of the Highlands and Islands.

According to the council's City-Region Deal programme page, that deal targets more than 1,000 direct jobs and 2,200 construction jobs, along with 6,000 new homes, 1,800 of them affordable. Its projects include new roads to unlock land for housing and business. By November 2024 the council put the overall value of the deal at £401.1m.

Cllr Michael Green, Joint Leader of the Highland Independent Group, said: "A Highland Growth Deal would bring together the significant work already underway across the region into a co-ordinated, long-term plan, helping to unlock additional investment and maximise its impact."

Existing programmes

The council listed several initiatives the deal would draw together. The Highland Investment Plan commits £750m to capital projects over the next five years, including new schools and community Points of Delivery. The Workforce North Co-Investment Fund is a £2m pilot combining public and private money to help employers recruit and train staff.

The Highland Social Value Charter, which the council described in June 2026 as a nine-point framework agreed with the Highland Community Planning Partnership, commits renewable developments to delivering community benefit. The Growth Deal announcement said the Charter had secured £6bn in investment pledges. The Highland Wealth Fund is designed to channel Charter contributions and other investment into regional and local priority projects.

Councillor Bill Lobban, Convener of the Highland Council, said when the Wealth Fund was announced that it would help share the benefits of renewable energy development more fairly.

The council has also endorsed a £547m reinvestment plan from the Inverness and Cromarty Firth Green Freeport. Retained business rates from existing businesses within the freeport tax sites are excluded from that fund. Calum MacPherson, Chief Executive of Inverness and Cromarty Firth Green Freeport, said the long-term capacity to invest in skills, housing and local infrastructure is significant.

On housing, the Growth Deal announcement said the Highland Housing Challenge aims to deliver 25,000 additional homes across Highland by 2035. In May 2026, when it launched its Empty Homes Fund, the council said 24,000 new homes were needed by 2035.

What happens next

Council officers will now begin formal discussions with both governments and develop an initial strategic proposition, investment framework and programme of priority activity, which will go back to members for further consideration.