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Scots ministers escalate dispute over Tory-DUP deal funds Scots ministers escalate dispute over Tory-DUP deal funds
(about 2 hours later)
The Scottish government is "likely" to trigger formal dispute resolution talks over the £1bn Conservative deal with the DUP at Westminster.The Scottish government is "likely" to trigger formal dispute resolution talks over the £1bn Conservative deal with the DUP at Westminster.
Ministers in Scotland believe that funding should also be heading north of the border in light of the agreement of extra money for Northern Ireland.Ministers in Scotland believe that funding should also be heading north of the border in light of the agreement of extra money for Northern Ireland.
Finance Secretary Derek Mackay has written to Treasury chief Liz Truss about the matter. Finance Secretary Derek Mackay has written to Treasury chief Liz Truss asking for an "urgent" meeting.
The UK government insists the deal is not subject to Barnett formula rules.The UK government insists the deal is not subject to Barnett formula rules.
A Scottish government spokesman said the deal was a "gross breach of the established principles of devolution".A Scottish government spokesman said the deal was a "gross breach of the established principles of devolution".
The confidence and supply agreement sealed between the Conservatives and the Democratic Unionist Party on Monday will see £1bn of extra funding for Northern Ireland over the next two years, targeted at areas including health, education and infrastructure.The confidence and supply agreement sealed between the Conservatives and the Democratic Unionist Party on Monday will see £1bn of extra funding for Northern Ireland over the next two years, targeted at areas including health, education and infrastructure.
First Minister Nicola Sturgeon said Scotland was "missing out on an estimated £2.9bn" because of the London government "ignoring the Barnett formula".First Minister Nicola Sturgeon said Scotland was "missing out on an estimated £2.9bn" because of the London government "ignoring the Barnett formula".
However, Scottish Conservative leader Ruth Davidson said this was an "absurd" argument, pointing out that Scotland had benefited in the past from "the exact same" kind of deals.However, Scottish Conservative leader Ruth Davidson said this was an "absurd" argument, pointing out that Scotland had benefited in the past from "the exact same" kind of deals.
What is the Barnett formula?What is the Barnett formula?
Ms Sturgeon's cabinet discussed the deal at their weekly meeting, with a spokesman saying they voiced "displeasure".Ms Sturgeon's cabinet discussed the deal at their weekly meeting, with a spokesman saying they voiced "displeasure".
Mr Mackay will announce that he has written to the Treasury during topical questions at Holyrood later, when a question on the deal has been lodged by Labour's Lewis Macdonald. During topical questions at Holyrood, Mr Mackay said he had written to Treasury chief Liz Truss "seeking an urgent meeting", adding that the deal was "ripping off Scotland to the tune of £2.9bn" and "undermining devolution".
Ministers may seek to pursue the matter through the intergovernmental joint ministerial council (JMC) dispute resolution process. In the letter, he said the deal had "not been properly considered" under funding policy that states that funding programmes should be "considered by Treasury ministers and their counterparts in the devolved administrations to ensure all viewpoints are understood before final decisions are taken".
The spokesman said: "As well as writing to the Treasury today, it's likely that the Scottish government will be contacting the UK government with a view to invoking the dispute resolution mechanism under the JMC process. Asking for an "urgent meeting" alongside the Welsh finance minister, he said he hoped that a "satisfactory resolution" could be reached with "a funding allocation across Scotland, Wales and the rest of the UK that is fair and reasonable for us all".
"In summary, cabinet expressed displeasure at the nature of the deal with the DUP, which would appear to be a gross breach of established principles of devolution." However he said if this did not happen, he said "we will look to pursue a more formal mechanism to resolve the situation by invoking the formal dispute resolution mechanism".
At the meeting, Ms Sturgeon called on Scottish Secretary David Mundell to explain comments he had made before the deal was announced, where he said he would not back any deal which "deliberately sought to subvert the Barnett rules". Also at cabinet, Ms Sturgeon called on Scottish Secretary David Mundell to explain comments he had made before the deal was announced, where he said he would not back any deal which "deliberately sought to subvert the Barnett rules".
The SNP's Westminster group leader Ian Blackford said that if Mr Mundell could not answer questions about the deal, his position would "quite simply be untenable".The SNP's Westminster group leader Ian Blackford said that if Mr Mundell could not answer questions about the deal, his position would "quite simply be untenable".
Downing Street has insisted the Barnett formula does not apply to the new money as it is provided as an addition to the Northern Ireland executive's block grant.Downing Street has insisted the Barnett formula does not apply to the new money as it is provided as an addition to the Northern Ireland executive's block grant.
The Barnett system concerns any additional spend by the UK government in England on matters devolved to other parliaments, and the Conservatives insist this is not triggered by the deal.The Barnett system concerns any additional spend by the UK government in England on matters devolved to other parliaments, and the Conservatives insist this is not triggered by the deal.
Ms Davidson likened it to city deals, such as that which invested £500m in Glasgow, or the money invested by the UK government in the V&A museum project in Dundee, the Glasgow school of art or the Helensburgh waterfront.Ms Davidson likened it to city deals, such as that which invested £500m in Glasgow, or the money invested by the UK government in the V&A museum project in Dundee, the Glasgow school of art or the Helensburgh waterfront.
She said: "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.She said: "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 it is incredibly hypocritical for the SNP to complain when, under their reckless plans for independence, they would end the UK's funding deal immediately - leaving Scotland with a £15 billion black hole in our public finances.""And it is incredibly hypocritical for the SNP to complain when, under their reckless plans for independence, they would end the UK's funding deal immediately - leaving Scotland with a £15 billion black hole in our public finances."