British Prime Minister Theresa May yesterday was to set out plans for a ￡1.6 billion (US$2.11 billion) fund to help to boost economic growth in Brexit-supporting communities, with ministers denying it was a bribe to win support for her EU exit deal.
The “Stronger Towns Fund,” details of which appeared in newspapers last month, is seen by many as part of May’s efforts to win support for her Brexit deal from opposition Labour Party lawmakers who represent areas, particularly in northern England, that voted strongly in favor of leaving the EU.
Britain is due to leave the bloc at the end of the month and May, whose exit deal with Brussels was rejected by a large majority of lawmakers in January, has promised parliament would get to vote on a revised deal by Tuesday next week.
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The government said the fund would be targeted at places that had not shared fairly in the nation’s prosperity and would be used to create new jobs, help train people and boost economic activity.
“Communities across the country voted for Brexit as an expression of their desire to see change; that must be a change for the better, with more opportunity and greater control,” May said in a statement.
“These towns have a glorious heritage, huge potential and, with the right help, a bright future ahead of them,” she said.
Labour Party finance spokesman John McDonnell said the fund was “Brexit bribery.”
“This towns fund smacks of desperation from a government reduced to bribing Members of Parliament to vote for their damaging flagship Brexit legislation,” he said in a statement.
However, British Secretary of Housing, Communities and Local Government James Brokenshire said the money was not linked to support for the withdrawal agreement.
“This is funding is there regardless of the outcome,” he told BBC radio, when asked if the money was a bribe.
“Obviously, we want to see a deal happening, but no, there is no conditionality in that sense,” he said.
One billion pounds have already been allocated, with more than half going to towns across the north of England. A further ￡600 million is to be available for communities around the country to bid for, the government said.
Critics said that the fund, when divided between a large of areas, would not provide individual towns with that much money, nor make up for what they had lost as a result of government cuts in recent years.
Brokenshire did not say how many towns would benefit, but said the money could be “transformative.”
“It can make that difference on creating the jobs, actually putting the skills in place and changing people’s lives in a modern positive economy,” he said.
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