Scots and Welsh won’t get extra cash after DUP deal
Northern Ireland could receive more than £1bn but the other devolved nations may miss out
SCOTLAND and Wales will not automatically get any extra money from Theresa May’s billion-pound deal with the Democratic Unionist Party, it is understood.
Senior figures involved in the negotiations believe the so-called Barnett formula, which ensures government spending is shared equally across the UK, does not apply.
It means that even though more than £1billion could be pumped into the Northern Irish economy to help keep Mrs May in power, other nations will not benefit.
When asked to explain, sources told The Sunday Telegraph that the deal – due to be finalised early this week – was a “unique situation”.
It is understood that the Government will argue the handouts are “grants” rather than extra departmental spending, which would normally trigger the mechanism. Ian Blackford, the SNP leader in Westminster, last night reacted with fury at the suggestion that other parts of the UK would not get extra money because of the deal.
“There would be absolute outrage if on the back of a shabby deal between the Tories and the DUP there wasn’t consequential investment for Scotland,” he said.
“I understand why the DUP would want to do a deal that involves investment in Northern Ireland. But the need for investment in infrastructure is just as strong in Scotland. We’re looking at MPs from other parties in Scotland to join with us in standing up for the country.” The development follows a week of intense speculation about what the Tories will give the DUP to gain their support in Parliament.
Mrs May announced just hours after her failure to win a majority at the election that she would attempt to form a Government with the support of the DUP’s 10 MPs.
However, two weeks later the parties have still not agreed the “confidence and supply” deal that No 10 had been expecting.
This week will see intense backroom negotiations as the Tories and the DUP look to agree a deal before crucial votes on the Queen’s Speech on Wednesday and Thursday. At the same time parallel talks between the UK Government and five Northern Irish political parties are going on to solve the Stormont impasse.
If a Northern Ireland executive is not in place by Thursday there must either be new elections in the country or direct rule from Westminster, implemented via new legislation.
The shape of a deal between the Tories and the DUP will have a major impact on Mrs May’s ability to govern over the coming months.
It has been reported that the DUP wants anything between £750million to £2billion in extra spending. It is also said to want the abolition of air passenger duty at Northern Irish airports and a cut to corporation tax.
However, the exact details of their demands are tightly guarded.
Gavin Williamson, the Chief Whip, has been leading talks for the Tories while MPs Nigel Dodds and Sir Jeffrey Donaldson are representing the DUP.
The negotiating experience of the DUP – which been involved in many protracted talks in recent decades – has been noted by some on the UK side.
“You only have to look at Northern Irish history to know they have lots of experience on this,” said a UK source familiar with the negotiations.