A UK government investment of £300 million is being matched by the Scottish Government with contributions from councils and universities expected to take the total investment to about £1 billion.

It is expected that the new deal will deliver 21,000 new jobs for the area.

Speaking ahead of today’s official signing ceremony economy secretary Keith Brown said the deal will transform the region’s economy and provide opportunities for all areas to grow.

He said the Scottish Government would invest up to £25m in the region’s workforce to reduce skills shortages and gaps and had committed £140m to transport projects, including £120m for improvements to the A720, Edinburgh City bypass and £20m for improvements at west Edinburgh.

He also said the government would invest £65m in new housing.

Mr Brown said: “The Scottish Government has been fully committed to this deal and I am very pleased that we have been able to get to the stage of achieving such an ambitious deal for the region.

“Edinburgh and its city region is an area of huge importance to the Scottish economy. It contains over a quarter of Scotland’s population and contributes £33bn to the Scottish and UK economies.

“The Scottish Government will be investing in the region’s workforce and will invest up to £25 million for an Integrated Regional Employability & Skills Programme which will reduce skills shortages and gaps, delivering opportunity for people across Edinburgh, the Lothians, Fife and the Borders.

“The Scottish Government has also committed £140m to transport projects including £120m for improvements to the A720, Edinburgh City bypass and £20m for improvements at West Edinburgh.

“Providing decent housing is a priority for the Scottish Government so we will invest £65m into new housing for the region.

“We will also be investing in innovation and that will focus on ensuring businesses and communities across the region can benefit from opportunities through world class business infrastructure.

“Festivals are a crucial part of the culture and economy of Scotland, which is why we are investing £10m towards a new concert venue for the city. We will reinforce Edinburgh’s reputation as a leading centre for music and the performing arts through investing in the proposed IMPACT project, working with existing philanthropic and commercial partners to deliver a new world-class performance venue in the heart of Edinburgh, and a new home for the Scottish Chamber Orchestra.

“In addition I look forward to discussing with partners how we can further support Edinburgh’s festivals.

“Taken together these projects will help the region continue to thrive and grow, fulfilling our ambitions for the region to be one of the fairest and most inclusive areas in the country.”

The Edinburgh City Deal will focus on maximising the economic value of new technology. It will use Edinburgh’s track record in innovation and new technology to build the sector, creating prosperity and jobs. The deal will include the creation of five new innovation hubs, including in robotics and space technologies.

It will also create a new Edinburgh concert hall.

Secretary of State for Scotland David Mundell said: “The UK government is investing £300 million in the Edinburgh and South East of Scotland City Region Deal, which will boost the economy of Edinburgh and the whole of South-East Scotland for decades to come. The Edinburgh deal will focus on the capital’s strengths of new technology, innovation and culture. It will make a real difference to the lives of people in the region, creating jobs and prosperity and driving investment.”

The Edinburgh and South East of Scotland City Region Deal involved six councils - City of Edinburgh, East Lothian, Fife, Midlothian, Scottish Borders and West Lothian.

The regional bid is the fourth UK City Deal in Scotland following investments in Glasgow, Inverness, and Aberdeen.

Tay Cities and Stirling city deals are currently under discussion, and the UK government has announced its commitment to exploring a Borderlands deal.