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Tories and the DUP reach £1bn deal to prop up minority government Theresa May faces backlash from Scotland and Wales over £1bn Tory-DUP deal
(about 7 hours later)
The Democratic Unionist party has agreed to support Theresa May’s minority government through a confidence and supply deal worth more than £1bn in extra funding to Northern Ireland over two years. Theresa May faced a backlash from politicians in Scotland, Wales and parts of England on Monday after completing a £1bn deal with the Democratic Unionist party to prop up her Conservative minority government.
Under the terms of the deal, which will ensure the DUP’s support for a vote this week on the Conservatives’ Queen’s speech, the pension triple lock and winter fuel payments will stay in place. Both policies were under threat in the Conservative manifesto. Political figures lined up to demand more money for their regions after Arlene Foster’s DUP agreed to a confidence and supply arrangement in return for the additional funding alongside relaxed spending rules relating to a further £500m previously committed.
DUP and Downing Street sources said the deal was worth more than £1bn to Northern Ireland’s block grant – with more flexibility for the devolved government over an additional £500m already committed to the region. Critics also claimed the money would simply act as a downpayment after it emerged that the DUP would be seeking further concessions to continue shoring up the Tories, amid a promise to review the agreement by “mutual consent” after two years.
The extra cash will be spent on hospitals, schools and roads in the region, the DUP said. Sources in London pointed to “physical and digital infrastructure”. They stress that the allocation of the extra money depends on who governs at Stormont. If parallel talks lead to power sharing being restored, then the DUP-Sinn Féin coalition could preside over the distribution of the extra money, they say. The former permanent secretary to the Treasury, Nick Macpherson, tweeted: “DUP will be back for more ... again and again. They have previous in such matters.”
The DUP will have no involvement in the UK government’s role in political talks in Northern Ireland. The Labour first minister of Wales, Carwyn Jones, called the agreement outrageous, describing it as a “straight bung to keep a weak prime minister and a faltering government in office”.
The agreement, which comes to just three pages, sets out plans for the DUP to support May on the Queen’s speech and any confidence motions, as well as on budgets and tax and spending legislation. His Scottish counterpart, the SNP leader, Nicola Sturgeon, expressed anger that the money was being paid outside the Barnett formula, which is designed to distribute funds fairly between devolved nations.
As well as the massive boost in spending on infrastructure, and the decision to stick with the pension and winter fuel policies, the document sets out policy linked to defence spending. “In concluding this grubby, shameless deal the Tories have shown that they will stop at nothing to hold on to power – even sacrificing the very basic principles of devolution,” she said.
In particular, it confirms a Conservative agreement to meet the Nato commitment of spending 2% of GDP on the armed forces. It sets out that both parties want the armed forces covenant to continue, and will consider options to support the reserve forces in Northern Ireland. But the Tory leader in Scotland, Ruth Davidson, accused the SNP of hypocrisy: “It’s absurd for the SNP to criticise UK government spending on top of Barnett in Northern Ireland, when the exact same thing happens in Scotland.”
And Nigel Dodds, a DUP MP and deputy leader of the party, said any outrage at the deal was “hypocrisy of the highest order”, saying the deal would deliver for all the people of the Northern Ireland – and the United Kingdom.
Under the terms of the deal, which will hand the prime minister the DUP’s support for a vote this week on the Conservatives’ Queen’s speech, May will also drop controversial plans to weaken the pension triple lock and means test winter fuel payments for older people across the country.
One government source said the election result had made it almost impossible for the prime minister to pursue the policies, calling it a “happy coincidence” that the DUP made the same demand.
The extra cash will be spent on hospitals, schools and roads in the region, the DUP said, with the money to be distributed by the Northern Ireland executive if a power-sharing agreement is completed by Thursday night.
If the talks collapse, then sources said the British government would still distribute the additional money to Northern Ireland.
The agreement, which comes to just three pages, sets out plans for the DUP to support May on the Queen’s speech and any confidence motions, as well as on future budgets and tax and spending legislation.
It confirms a Conservative agreement to meet the Nato commitment of spending 2% of GDP on the armed forces and commits both parties to the Armed Forces Covenant being implemented across Northern Ireland.
On Brexit, it says agriculture will be a critical policy area in negotiations.On Brexit, it says agriculture will be a critical policy area in negotiations.
The deal says “both parties will adhere fully to their respective commitments set out in the Belfast agreement and its successors”.The deal says “both parties will adhere fully to their respective commitments set out in the Belfast agreement and its successors”.
The DUP had been pushing for increased capital spending on health and education, the granting of a special lower corporation tax status for the region and the possible abolition of air passenger duty. But the deal may not be sufficient to see the government through a five-year term. In a strategy that will be seen by critics as a mechanism for the DUP to extract maximum concessions on every potentially close vote, it emerged on Monday that the Democratic Unionists will seek further concessions from the Tories within two years.
Aside from the extra billion pounds plus the Tories have agreed to inject into capital spending and other projects in Northern Ireland, the DUP will be looking for more deals as it continues to shore up the Conservatives, party sources in Belfast told the Guardian.
The abolition or radical cut to the air passenger duty tax for the region’s three airports would be a “post-Brexit ask” by the DUP, the sources said.
The other major concession the DUP would seek in its ongoing support for a Tory government depending on the backing of 10 Democratic Unionist MPs would be special corporation tax status for Northern Ireland.
There were also concerns from pro-choice MPs on both sides of the Commons that the deal could mean that the Conservative party had made a commitment to the DUP on abortion.
Amid claims in a heated House of Commons debate that the DUP’s influence could end hopes of extending the right to an NHS termination to Northern Irish women travelling to England, Conservative MP Anna Soubry said: “it isn’t fair that women seeking terminations from Northern Ireland should be charged by the NHS here.”
The deal comes just days before May has to put her Queen’s speech – with its heavy focus on Brexit – to a vote in parliament. She will need the support of the 10 DUP MPs to have any chance of getting the legislation through and allowing the Conservatives to govern without a majority.The deal comes just days before May has to put her Queen’s speech – with its heavy focus on Brexit – to a vote in parliament. She will need the support of the 10 DUP MPs to have any chance of getting the legislation through and allowing the Conservatives to govern without a majority.
Speaking at No 10, May said the two sides “share many values in terms of wanting to see prosperity across the UK, the value of the union, the important bond between the different parts of the United Kingdom”.Speaking at No 10, May said the two sides “share many values in terms of wanting to see prosperity across the UK, the value of the union, the important bond between the different parts of the United Kingdom”.
She added: “We very much want to see that protected and enhanced and we also share the desire to ensure a strong government, able to put through its programme and provide for issues like the Brexit negotiations, but also national security issues.”She added: “We very much want to see that protected and enhanced and we also share the desire to ensure a strong government, able to put through its programme and provide for issues like the Brexit negotiations, but also national security issues.”
Addressing the DUP leader, Arlene Foster, she said: “The agreement we have come to is a very, very good one, and I look forward to working with you.” Foster said she was “delighted that we have reached this agreement, which I think works, obviously, for national stability”, and said she wanted Northern Ireland to have a strong voice, particularly on Brexit.
Foster said: “We’re delighted that we have reached this agreement, which I think works, obviously, for national stability. In terms of the Northern Ireland executive, of course we are determined to see it back in place as soon as possible as well, because we believe we need a strong voice for Northern Ireland when dealing not least with the Brexit issue.” However, the decision led to criticism of the Tories after they attacked Labour’s spending promises, including for schools and the NHS, during the election campaign. Within hours “magic money tree” was trending on Twitter.
She insisted the deal was good for Northern Ireland but also the rest of the UK. However, it is likely to trigger a backlash from other parts of the UK, including Wales, Scotland and English regions that believe they have suffered from underfunding. The anti-Brexit campaigner Gina Miller also criticised the deal, claiming Northern Ireland already had an advantage in public spending terms.
The government reached out to devolved leaders as the deal was being published in an attempt to calm any backlash, but failed to stem the anger in Wales. “Although the Conservative government has found a way of making sure the payment to the DUP isn’t ‘Barnettable’ – a bribe’s a bribe,” she said. “Even before the extra cash given to Northern Ireland, the province was already benefiting from £11,000 public spending per head of population, compared to just £8,8000 for England – how is this fair?”
The first minister of Wales, Carwyn Jones, described the deal as unacceptable, after meeting with the secretary of state for Wales, Alun Cairns. The Tory former deputy prime minister Michael Heseltine told the World at One he was reminded of a saying by Enoch Powell: “Once you have paid the Danegeld, you never get rid of the Danes.”
He said Cairns had a “duty to fight against this deal and secure additional funding for our country”. Party leaders also criticised the deal,. Jeremy Corbyn said: “The government must immediately answer two questions. Where is the money for the Tory-DUP deal coming from? And, will all parts of the UK receive the much needed additional funding that Northern Ireland will get as part of the deal?”
“Today’s deal represents a straight bung to keep a weak prime minister and a faltering government in office,” Jones said. The Lib Dem leader, Tim Farron, said: “The nasty party is back, propped up by the DUP. “While our schools are crumbling and our NHS is in crisis, Theresa May chooses to throw cash at 10 MPs in a grubby attempt to keep her cabinet squatting in No 10.”
“This deal flies in the face of that commitment and further weakens the UK, and as currently drafted all but kills the idea of fair funding for the nations and regions. It is outrageous that the prime minister believes she can secure her own political future by throwing money at Northern Ireland whilst completely ignoring the rest of the UK.” Meanwhile, the former chancellor of the exchequer George Osborne criticised the government by using the Evening Standard to mock her as being under the control of Foster. The newspaper he edits depicted May as the Austin Powers character Mini-Me:
He also criticised the DUP for giving the Tories “the go-ahead to legislate how they please on Brexit” – which he said could weaken the devolved administration. And here's our second edition @EveningStandard ..... pic.twitter.com/Z2MRUISCDz
“This is a short-term fix which will have far-reaching and destabilising consequences.” His intervention was followed by a tweet by David Cameron’s former director of communications Craig Oliver, who joked: “Not sure George Osborne got our former bosses ‘be supportive’ memo.”
The SNP’s Westminster leader Ian Blackford MP accused the Tories of signing a “grubby deal with the DUP” after weeks of back-room negotiations.
“For years the Tories have been cutting budgets and services, but suddenly they have found a magic money tree to help them stay in power,” he said. “The financial aspects of this deal entirely sum up how little the Tories care about Scotland – while a billion pounds is being handed over to Northern Ireland, Scotland is seemingly to be offered little more than scraps from the table.”
He also claimed that the Scotland secretary, David Mundell, had categorically assured the SNP that Scotland would be in line for “Barnett consequentials as a result of the DUP deal”.
“So he has seemingly either been deliberately misleading people, or he is completely out of the loop even in Theresa May’s crumbling government.”
He claimed Scotland’s new Tory MPs had no authority or influence, and hit out at the Tory leader north of the border: “Ruth Davidson said they would stand up for Scotland, but instead they have bowed down to their Westminster bosses and sold Scotland out so they can cling to power.”
Blackford said SNP politicians would demand that Scotland receive its fair share of any funding going to Northern Ireland, and said Scottish Tory MPs should join them.