PARLIAMENTARY DEBATE
Regional Funding - 27 January 2026 (Commons/Commons Chamber)

I am very sorry to see your leg in such a way, Mr Speaker.

We are committed to driving growth everywhere. The Budget ensured that Scottish public services are fairly funded, with an extra £820 million for the Scottish Government through the Barnett formula, on top of a record settlement in June this year. We are also investing in transport for city regions, and investing £5 billion in deprived neighbourhoods through the Pride in Place programme, with some of that money going to Scotland.

I welcome the fantastic news that Edinburgh and south-east Scotland will receive £37.8 million from the new local growth fund, supporting infrastructure, business support and skills development. However, I consistently hear from businesses that they struggle to recruit people with the skill sets needed to grow their operations and fuel economic growth. Can the Chancellor set out how this investment will reach beyond the cities to tackle the acute skills shortages in my constituency of Bathgate and Linlithgow?

I thank my hon. Friend for her commitment to her constituency. It is right that the money is allocated through the regional economic partnerships in Scotland, and I have absolutely no doubt that my hon. Friend will make the case for her local area. The regional economic partnerships have already worked together to deliver the integrated regional employability and skills programme in Edinburgh and south-east Scotland, including helping people in her Bathgate and Linlithgow constituency.

Ministers will be all too aware of my campaign to unlock improvement at Moor Farm roundabout, which is currently holding back growth across the north-east and causing misery to local people on a daily basis. The Government have rightly taken steps to ensure that my region gets its fair share of investment through changes to the Green Book and place-based business cases, but will the Chancellor meet me ahead of the road investment strategy to ensure that we finally get this long overdue investment in a critical piece of north-east infrastructure?

My hon. Friend has been a tireless campaigner for the Moor Farm roundabout, which holds back both commuters and businesses, and therefore both growth and prosperity. I will continue to work with her on this. I know that the roundabout is now being properly considered for inclusion in the road investment strategy and I would be happy to meet her to discuss that further.

The Ayrshire growth deal, which was allocated £103 million of UK Government funds, has the potential to make a real difference to our economic prospects. Despite its clear potential, though, delivery on the ground remains far too slow in turning around real progress. What action can the UK Government take to drive momentum, sharpen the strategic direction of the deal and ensure that Ayrshire finally sees the benefits of this investment?

This Labour Government are investing more than £250 million in economic development and regeneration in Ayrshire, including but not limited to the Ayrshire growth deal. My hon. Friend is a great champion of Ayrshire, and I look forward to working with her and my good friend Anas Sarwar in the months and years ahead to deliver for the people of Ayrshire and those right across Scotland.

At the Budget, we published our North sea oil and gas plan and provided certainty by announcing that the energy profits levy introduced by the previous Government will end at the end of this Parliament. At the same time, we are supporting the transition to new jobs in new industries right across Scotland, including in Aberdeenshire, because the opportunities to transition to jobs in clean energy are very real, and we need to ensure that those jobs come to Scotland.

I know the Chancellor would say that the Northern Ireland budget was an exceptionally good one, but would she agree that there are extreme circumstances pertaining to three areas in particular—policing, education and health—at the moment? Will she at least get into discussions with the First and Deputy First Ministers in Northern Ireland to see what can be done to alleviate the problems that are coming towards us?

My right hon. Friends the Northern Ireland Secretary and the Chief Secretary to the Treasury are in discussions with the Northern Ireland Executive on some of the additional pressures they are facing. We are working through those plans and will have more to say shortly.

Regional funding must not come at the expense of local authority funding and all devolved funding must recognise the realities in the places where funding is needed, yet under the so-called fair funding review, in just three years Herefordshire council will see a reduction in UK Government fundings to 78% of current levels. The Government have also removed the remoteness adjustment for anything except social care, but rurality does of course matter for bin collections, school transport and many other aspects. Will the Chancellor look again at the fair funding review, which is unfair for so many places, like Herefordshire, and ensure that remoteness is properly adjusted for in the calculation?

My understanding is that the Ministry of Housing, Communities and Local Government is still consulting on this matter, so the hon. Lady and other colleagues will have a chance to feed into that process. In the spending review, we put an extra £600 million into supporting local authorities after the years of austerity under the Conservative Government. While the previous Conservative Prime Minister said he would take money away from poorer areas and give it to Tunbridge Wells, we are investing more fairly in the areas that need it most.