Sporting chance to beat downturn

"The 2014 Commonwealth Games will bring a massive boost to the physical infrastructure of this city," he said. "They will bring a public investment of £298m, contributing to an overall budget of £373m.

"And in addition to the direct investment by the Games organisers, a further £1bn will flow into major infrastructure projects as part of the run-up to 2014, delivering key projects such as the East End Regeneration Route, the SECC Arena and the Games Village. Projects which will help to transform a substantial part of the fabric of the Glasgow economy."

If there was one message the movers and shakers of the public and private sector attending the 11th State of the City Economy Conference at Glasgow's Radisson, it was this: pledged, publicly funded projects such as the 2014 Games have given Glasgow a half-full glass; we should thank our lucky stars at least we have that.

Previous conferences have had a distinctly different backdrop, characterised by the buoyancy of an economy reversing years of decline, of ongoing growth, rising employment and a booming housing market. This year, the mood was provided by a financial crisis, rising inflation, recession, redundancies and global economic doom.

Add to the mix that Glasgow generates one-sixth of Scotland's GDP and is the focus for a conurbation of 1.7 million people and it is clear that what is bad for the city is bad for the nation.

However, rather than lamenting its fate at the hands of the credit crunch and recession, the conference was very much the platform for a bipartisan fightback.

Firstly, Mr Salmond announced an acceleration of the planned improvements to the Glasgow-Edinburgh rail link, which will cut journey times to as little as 35 minutes. With feasibility studies for the upgrade completed, the First Minister said he expected key contracts to be signed later this year to take the £1bn project through the next stage of design.

He said: "Glasgow is our largest city and a core part of Scotland's economy. We are living in unprecedented and challenging economic times but the Scottish Government is committed to pulling together all our resources to the fullest extent to help protect our real economy, our households and high streets.

"We must ensure we have a modern, quick and efficient transport system. The train service is one of our busiest and these improvements, alongside the M74 completion, will create more economic opportunities for Glasgow, its businesses and residents."

Mr Salmond also trumpeted Glasgow's "vast economic potential", adding that it had a range of opportunities which would help the local and national economy including the 2014 Games, the Clyde wind farm development and the £842m redevelopment on the Southern General Hospital.

Steven Purcell, leader of Glasgow City Council, then unveiled his own raft of new measures aimed at helping businesses.

An economic advisory board, made up of Sports Division founder Sir Tom Hunter, businessman and former Celtic Football Club director Willie Haughey, leading engineer Jim McColl, retail entrepreneur Akmal Khushi and Dr Lesley Sawyers, the first female chief executive of the Glasgow Chamber of Commerce, is being created to offer guidance to the council on future plans.

The council is setting up a £36m Better Glasgow Fund to help regeneration, while the Business Investment Fund, which offers low-cost loans to small and medium-sized firms, is being extended. In addition, a more flexible land disposal policy should make it easier for projects to get off the ground, while the council will defer requests for the payments companies have to make to develop sites.

He also promised free parking on the Sunday before Christmas and told the audience that, while the credit crunch and increasing interest rates had contributed to a slowdown in overall development activity, the value of private-sector development across the city now totalled £4.3bn, an increase of 2% on the previous year.

Mr Purcell said: "My main priority is helping business in the city through the economic difficulties ahead. These are tough times. Nobody can predict with any great certainty what the next 12 months will bring, but we know that our economy is going to get worse before it gets better.

"The first thing that all public bodies must do is to examine where we can help business by being more flexible and willing to do things differently. This is no time for unnecessary rules and processes, this is a time to do everything we can to help.

"This is not a time for any of us to retreat into our bunkers. We must stick together and do what is right for our city."

At the same time, a little over a mile away, Finance Secretary John Swinney was announcing 100 jobs being created though a Scottish Government-backed expansion plan by a business information firm.

The government is making an £800,000 grant towards the expansion, which will involve BiP Solutions, moving to Glasgow's "digital quarter" at Pacific Quay.

Mr Swinney said: "This announcement is excellent news for Glasgow and the wider economy."

Back at the Radisson the revised action plan to translate the city's economic strategy, A Step Change for Glasgow, into reality was being detailed.

Unveiled at last year's conference, it has now been updated after a period of consultation with the public and private sectors. It identifies seven areas where a "step change" is needed to grow the city's economy including building the metropolitan core, putting education at the heart of the economy, creating a culture of entrepreneurship, promoting the Glasgow-Edinburgh collaboration, being leaders in strategic area regeneration, creating work for those without, and improving the city's international positioning.

Liz Connolly, regional director at Scottish Enterprise West, said: "The new plan is a major step forward for Glasgow.

"Successful cities are characterised by a consistency of approach and a shared understanding of how the city will develop in the years ahead. This new plan is a valuable single reference point for all who would invest in Glasgow."

Eight themes for a bright economy

Building the Metropolitan Core Includes the centre's traditional business and retail areas, the upper reaches of the Clyde Waterfront corridor and parts of the west of the city. The plan includes making fuller use of buildings and space and enhance attractiveness to users and investors.

Education at the heart of the economy Aims to harness education sector's potential by boosting the capacity of institutions, encouraging collaboration between sectors, developing a knowledge base, supplying skilled people and enabling benefits claimants to progress into work.

A culture of entrepreneurship With around 5000 fewer businesses than a city of its size should have, the plan includes strengthening support services and increasing business education in colleges and schools, as well as improving the supply of business space and easing access to public sector contracts.

Glasgow-Ediburgh: Collaborating to compete Although providing one-third of Scotland's GDP, both cities could perform better on the international stage. It is hoped combining the assets of both could make them globally significant. The case will also be made for major infrastructure improvements.

Leaders in strategic area regeneration The plan focuses on developing three areas to transform them physically, socially and economically. The areas involved in the project are the completion of the Clyde waterfront, the delivery of Clyde Gateway, the area around the M74 extension, and the development of the Canal Corridor in the north of the city.

Working for those without Effectively the plan of Glasgow Works, the organisation launched in 2007 aimed at getting more people on benefits into employment. It aims to get 11,000 people into work by next year.

International positioning A vision to transform Glasgow into a world-class city including boosting the profile through high-profile events such as the 2014 Games and attracting investment.

Succerss through specialisation National priority industries should receive continuing support. Sectors include marine technology, energy and the culture industries. Links with NHS and universities vital.