Edinburgh funding: Douglas Alexander announces £37.8m UK Government cash for regional economic partnership
Edinburgh and its neighbouring councils are to receive funding of £37.8 million from the UK Government over the next three years to boost the local economy.
The cash is part of a new £140m Local Growth Fund being shared between five regions of Scotland to be spent on projects which will drive economic growth, including infrastructure investment, business support and skills development.
But the SNP claimed the new funding - which replaces the previous government’s UK Shared Prosperity Fund - was undermining devolution by bypassing the Scottish Government.
Announcing the new cash, Scottish Secretary Douglas Alexander said it came on top of a record settlement for Scotland from Westminster and other recent funding initiatives from the UK.
He said local leaders would decide how best to use the latest money. "The UK Government will now work with local partners to develop investment plans tailored to each region.
“By investing in local areas, reducing child poverty, and bringing down inflation, the UK Government is focused on delivering material change to people across the country – boosting living standards and improving public services.”
Deputy First Minister Kate Forbes said any investment in Scotland was welcome. But she added: "We are disappointed that the UK Government has chosen not to deliver this funding through the Scottish Government.
"Despite a commitment from UK Government ministers last year to engage meaningfully on funding decisions, this initiative was developed without Scottish Government input."
In an interview on BBC Radio Scotland, Mr Alexander defended the UK Government approach.
He said: "We know historically that there has been chronic underfunding of local government in Scotland. That's why the UK Shared Prosperity Fund was being used frankly to fund things that should have been funded by the Scottish Government.
“I make absolutely no apology for the fact we are stepping in where the Scottish Government over many, many years has deprioritised the regional economies of Scotland."
The Scotland Office said the funding, calculated according to population, would be allocated via Regional Economic Partnerships (REPs), which are based on the same boundaries as for the City Region Deal.
The Edinburgh and South East Scotland REP covers six council areas - Edinburgh, East Lothian, Midlothian and West Lothian, Fife and Scottish Borders.
The City Region Deal joint committee comprises the leaders of each of the councils plus representatives of the private sector, third sector and higher education.
The Scotland Office said exactly which organisations will be involved, along with local authorities, in delivering the Local Growth Fund in each region would be set out in due course.
In November, First Minister John Swinney said if the SNP wins this year’s Scottish Parliament elections, he wanted to see regional partnerships between councils take on more responsibilities in areas like skills, economic development, planning and transport.
Edinburgh council leader Jane Meagher said at the time that such a move would be “most welcome” and build on good work done by the Edinburgh and South East Scotland City Region Deal.