The Chancellor of the Exchequer said he is looking forward to “progress being made” on the Tay Cities Deal as he toured the £1bn waterfront regeneration of Dundee today.

Philip Hammond visited the much-anticipated V&A Museum of Design Dundee to hear about the city’s ambitious plans to create thousands of jobs and boost investment.

He also heard about plans for V&A Dundee’s galleries and exhibitions, which will bring  V&A’s exhibitions and collections to Scotland as well as showcasing Scottish design.

Mr Hammond said: “I’ve seen today how Dundee has benefited from our life sciences and creative sector funding.

“I now look forward to progress being made on the Tay Cities Deal, which will follow the £1 billion already committed by the UK to Scotland’s City Deals so far.

“This government will continue using the UK’s broad shoulders to provide Scotland with the skills and support it needs to thrive in the future.”

The UK Government has contributed £5 million towards the construction of V&A Dundee, alongside other key supporters including the Scottish Government, Heritage Lottery Fund, Dundee City Council, Creative Scotland, Scottish Enterprise, the University of Dundee, Abertay University and many trusts and private donors.

Philip Long, Director of V&A Dundee, said: “V&A Dundee is a key part of the cultural and economic future of this great city. Our new museum will celebrate creativity and make new opportunities, helping to create jobs and put Dundee on the map internationally as an exciting tourism destination.

“Through our outreach and education programmes we are also working with businesses across Scotland to boost their creativity and innovation, as well as inspiring Scotland’s young people to become entrepreneurial designers ready to solve future challenges.

“We are very grateful to the UK Government and all of our supporters who are helping to make V&A Dundee a reality, bringing major exhibitions and collections to Scotland, boosting tourism and creating new jobs.”

Opening in 2018, V&A Museum of Design Dundee will be the only V&A museum anywhere in the world outside London. It will be the first ever dedicated design museum in Scotland: an international centre for design, a place of inspiration, discovery and learning.

V&A Dundee will be the first building in the UK designed by Kengo Kuma, the internationally renowned architect who is also designing the Tokyo 2020 Olympic stadium.

V&A Dundee has been established in close partnership with the Victoria and Albert Museum in London, accessing its collections, curatorial expertise and exhibitions.

It is run independently with its own Director and, as well as bringing V&A exhibitions to Scotland, it will develop its own exhibitions.

The Tay Cities Deal represents a £1.84bn proposal to create up to 15,000 jobs in Tayside and North East Fife.

It includes more than 50 projects, including a scheme to boost employment through oil and gas decomissioning.

The bid seeks £826m over 10 years from the Scottish and UK governments and their agencies.