SNP is accused of downplaying £1bn deal with UK Tories
Minister quibbles over huge cash boost for capital
SCOTTISH ministers have been told they should be ‘celebrating’ a joint initiative with UK officials to deliver a £1billion funding boost to Edinburgh rather than playing it down.
Politicians signed a City Deal for Scotland’s capital and the SouthEast region yesterday which is set to see thousands of jobs created, with investment in housing, innovation, transport and skills and culture.
The UK and Scottish Governments are each investing £300million in the project over 15 years, with local authorities and other partners such as universities also committed to adding up to £500million.
The scheme – the fourth UK City Deal in Scotland following investments in Glasgow, Aberdeen and Inverness – is set to bring around 21,000 jobs to Edinburgh and the surrounding area.
But, as Scottish Secretary David Mundell and First Secretary of State Damien Green made the announcement yesterday, Scottish ministers appeared to try to distance the deal from the UK Government.
SNP Economy Secretary Keith Brown told the BBC’s Good Morning Scotland radio programme that it was not a UK initiative – despite schemes elsewhere in the
‘Today is a day for celebrating’
country – and that the Scottish Government had made the initial investment.
He claimed: ‘You’ve been announcing all morning that it’s a £300million investment from the UK Government. This is a £300million investment by the Scottish Government and we hope and expect – and we understand – that the UK Government will match the funding we are making available which is also £300million.’
Asked to acknowledge that the City Deal is a UK Government initiative, Mr Brown said: ‘Well no it’s not, it’s a joint process as it has been for each of the previous three ones as well. And we’ve either matched or exceeded the amount of contribution made by the UK Government and today we announced we will match that contribution of £300million.’
Mr Brown’s comments came just a day after the Scottish Government lodged a formal dispute with the UK over the Tories’ deal with the Democratic Unionist Party (DUP). Theresa May signed an agreement with the party in exchange for support from its MPs in key House of Commons votes.
This will see Northern Ireland receive an additional £1billion, which the Scottish Government insists should mean Scotland getting an additional £2.9billion in Barnett consequentials.
The UK Government has argued that Scotland has also received money outwith the Barnett formula for city deals.
But Mr Brown said that the funding in these is for reserved areas – which he claimed was the reason the spending was duplicated elsewhere.
Last night a Tory source said: ‘The Scottish Government should be celebrating their part in a great joint initiative with the UK Government. Today is a day for celebrating a fantastic, transformative deal for Edinburgh and South-East Scotland. It’s a great example of what Scotland’s two governments can achieve when they work together.’
Mr Green told Good Morning Scotland: ‘It’s money both from the UK Government and the Scottish Government and obviously it’s done in conjunction with the local councils.
‘This is a very considerable sum of money. It will be spent in a number of ways; I think the most exciting part of it will be building on Edinburgh’s record on innovation and new technology.’
Investment includes up to £25million in a programme to reduce skills shortages and gaps, £140million in transport projects, £65million in new housing for the region, and £10million towards a new concert venue.
The deal was also welcomed by Scotland’s political parties, with Scottish Tory leader Ruth Davidson describing the agreement as ‘fantastic news’, and Scottish Labour’s Jackie Baillie stating that it was ‘hugely important’ for economic growth.