Row over cash for Scotland as £1.6bn ‘Brexit bung’ towns fund unveiled
● Government accused of trying to ‘bribe’ Labour MPS with new investment
The SNP have accused Prime Minister Theresa May of a “cynical last-minute attempt to buy support” for her Brexit deal after the government announced a £1.6 billion fund for depressed towns aimed primarily at areas of England that voted to leave the EU.
A total of £1bn will go directly to local authorities across England between over seven years, with more than half of the sum earmarked for communities in the north. Communities Secretary James Brokenshire said the money would ensure there was “no part of our UK left behind”, and insisted it was “not conditional” on support for the Brexit deal.
But shadow chancellor John Mcdonnell claimed it was a “desperate bribe”, while Stoke Central MP Gareth Snell – whose constituency voted heavily for Brexit – said the £212m set for the West Midlands was “less than the total value of cuts faced by Stokeon-trent City Council alone”.
The announcement also sparked a row over whether the money would bypass the Scottish Government, breaking with devolved funding arrangements under the Barnett Formula. Some £600m has been set aside for bids from local authorities across the UK, including in Scotland, Wales and Northern Ireland.
Downing Street and the Scotland Office said the Barnett consequentials would be addressed in the Chancellor’s Spring Statement next week.
The Scotsman has revealed how Scottish Conservatives are lobbying for more UK government funding to go directly to local authorities in devolved nations, cutting out the “middle man”.
One proposal is to use a new UK Shared Prosperity Fund, which will replace multi-billion-pound EU investment funds currently administered by devolved governments, to distribute cash directly to local authorities and groups.
The Prime Minister’s spokesman said a consultation on the Shared Prosperity Fund, already two months late, would be published “shortly”.
A Scottish Government spokesman said it would “press the UK government to ensure that Scotland receives fair share of any additional funding through the wellestablished Barnett formula”.
SNP deputy Westminster leader Kirsty Blackman MP accused the Prime Minister of handing a Brexit “bung” to MPS.
She said: “This is pork barrel politics at its worst.
“The UK government must explain why it has failed to include any mention of additional funding to Scotland, and Barnett consequentials, in this announcement.”