The Courier & Advertiser (Angus and Dundee)
PM defends £1 billion coalition deal with DUP
Welsh and Scottish politicians demand equivalent sums
Theresa May has defended her £1 billion deal with the Democratic Unionist Party amid Labour claims it will see most of the UK miss out on billions in additional funding for infrastructure and public services.
The deal announced on Monday was branded a “bung” after it emerged the Prime Minister had approved an additional £1 billion in spending on infrastructure and health in Northern Ireland, along with new flexibility over £500 million of previously allocated cash, as part of an arrangement which will see the DUP’s 10 MPs prop up her minority administration.
Scottish and Welsh politicians have demanded equivalent sums are handed over under the so-called Barnett formula, which normally guarantees proportional rises in the different nations of the UK.
Labour’s shadow chancellor John McDonnell said the deal could eventually be worth as much as £2bn, which would normally imply £59bn of additional spending in England, £6bn in Scotland and £3bn in Wales, under the system known as “Barnett consequentials”.
But senior Conservative sources have insisted the Barnett formula does not apply to the money because it is an addition to the Northern Ireland Executive’s block grant. They pointed out that similar exemptions affected cash for city deals in Scotland and Wales.
Speaking during a visit to Bristol, Mrs May said: “We’ve seen across Scotland, Wales and England government investing in those parts of the country.
“If you look at Scotland we’ve seen city deals, we’ve seen the same in the south west of England with the Bristol city deal, we’ve seen the local growth deal.”
Mr McDonnell said: “The coalition of chaos that was set up yesterday risks increasing division in our society by easing austerity in one part of the UK alone.
“We need to see an end to austerity throughout the UK, not just in Northern Ireland, and not just to prop up Theresa May and her failed Government.
“Labour’s fully costed alternative programme of government stands ready to provide Britain with the leadership that will truly end austerity, and unite all nations and regions in our country.”
Under the deal, the DUP guaranteed its 10 MPs will vote with the Government on the Queen’s Speech, the Budget, and legislation relating to Brexit and national security.