A MULTI-MILLION pound deal has been signed off - bringing plans to add a new rail route and create a new gateway for Carlisle a step closer to fruition.

Politicians from Cumbria joined their counterparts from Northumberland and Scotland for the signing of the £394.5 million Borderlands Growth Deal on Monday.

During a meeting at the Mountain Bike Centre of Scotland at Glentress, near Peebles in the Scottish Borders, ministers of the UK and Scottish Governments, along with the leaders of the five councils which make up the partnership (Carlisle city council, Cumbria county council, Northumberland county council, Scottish Borders council and Dumfries and Galloway council), together signed off the ‘heads of terms’ agreement.

Of that deal, a total of £350 million will come from the UK and Scottish Governments, with £44.5 million from the combined five local authorities.

The signing of the formal agreement signifies a major step towards the funding of agreed projects and programmes put forward by the partnership to the two governments, including one plan to extend the Borders Railway from Tweedbank to Carlisle.

Another includes the £1.5m for the Star of Caledonia, a landmark sculpture situated at Gretna, which aims to stimulate economic growth for the region.

The long-term benefits of the deal will reach all parts of the Borderlands area, and aims to drive inclusive growth and deliver a raft significant and lasting benefits for individuals, businesses and communities.

Councillor Stewart Young, leader of Cumbria county council said: “It’s welcome to see that the multi-million pound investment recognises many exciting projects that could benefit the whole of Cumbria.

“These include: investment in infrastructure to improve mobile and digital connectivity across the Borderlands region; providing funding to support the revitalisation of smaller towns across our six districts; and capitalising on our outdoor assets to raise the profile and appeal of the Borderlands as a place to visit which includes Hadrian’s wall, See More Lake District and Border cycling and walking routes.

“This is the latest milestone in a long journey, and fantastic news for the county, after we’ve been working with the UK and Scottish Government over many months to get to this point.

“Whilst we’re still in the early stages and we don’t have confirmed levels of funding for many of the projects, their reference in the heads of terms is very encouraging and I’m looking forward to seeing how each of these business cases develop and the benefits that they will bring to Cumbria.”

The sentiments were echoed by Carlisle MP John Stevenson, who also attended the momentous event.

He said: “I am delighted with the news that the heads of terms has been signed.

“This is the next stage in the Borderlands journey and is a huge step forward for investment in our region. It is very much welcomed.”

The meeting was also attended by MP Jake Berry, minister for the Northern Powerhouse project.

Mr Berry said: “This once-in-a-generation deal will deliver unprecedented investment in the Borderlands region while strengthening our cross-border links.

“We have moved closer to finalising a deal which will deliver over 5,500 jobs, dramatically improve transport and digital connectivity, boost tourism and generate around £1.1 billion of economic benefits for the region.

“Let’s use this deal to realise a new era of regeneration, inclusive growth and limitless economic opportunities for the Borderlands and the whole of the Northern Powerhouse.”

The deal is set to deliver 5,500 job opportunities, attract more than four million extra tourists to the area, improve mobile and digital connections and unlock investment in towns, generating £1.1billion to the Borderlands economy.

The signing of the full growth deal agreement is expected to take place next year.