The final realisation of the ambitious Borderlands Growth Deal is likely to be delayed as a result of the Covid-19 pandemic.

A new report from Dumfries & Galloway Council suggests that the signing of the final deal will likely be affected by the continued disruption caused by the pandemic.

The original heads of terms agreement for the Borderlands deal, which involves funding of £265m from the UK Government, £85m of funding from the Scottish Government and £44.5m from local authorities, was signed in July last year.

The final deal had been set to be signed this year, but the report from Dumfries & Galloway Council – one of the five local authorities that are part of the project – stated: “It is anticipated that the signing of the final deal will be delayed until the end of this calendar year.”

This was explained as being due to “resources being redeployed to other tasks in partner organisations and in both Governments”.

Despite the disruption, the report added that “work has continued throughout this year on developing the business cases required to progress to final deal, despite the challenges that partners have faced due to the current Covid-19 crisis”.

The Borderlands Growth Deal has involved cooperation between five local authorities: Carlisle City Council, Cumbria County Council, Northumberland County Council, the Scottish Borders Council and Dumfries & Galloway Council, as well as the UK Government’s appointed “Borderlands Champion”, Carlisle MP John Stevenson.

The Borderlands deal, once completed, is set to unlock funding for a number of significant projects in Carlisle, which Mr Stevenson describes as “effectively the capital of the Borderlands region,” and thus has a “significant role to play in driving the local economy”.

These projects include the proposed redevelopment of the historic Carlisle Citadels into a brand new campus for the University of Cumbria, set to attract £50m of funding, and £15m worth of improvements to Carlisle railway station.

The Borderlands Growth Deal is separate to the funding Carlisle and several Cumbrian towns are set to receive as part of the Future High Street Fund, and the Towns Fund.

The funding set to be received by Carlisle was described by city council leader John Mallinson as “the most significant levels of investment that Carlisle has seen for a very long time”.