Brexit bribe? UK PM May unveils $2.1 billion fund for Brexit-backing towns

Brokenshire did not say how many towns would benefit but said the money could be "transformative".

Theresa May, Britain, Brexit
File photo: Britain's Prime Minister Theresa May leaves church, near High Wycombe, Britain, January 20, 2019.
Reuters London
Last Updated : Mar 04 2019 | 10:53 PM IST

British Prime Minister Theresa May will on Monday set out plans for a 1.6 billion pound ($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 lawmakers who represent areas, particularly in northern England that voted strongly in favour of leaving the European Union.

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 will get to vote on a revised deal by March 12.

The government said the fund would be targeted at places that had not shared fairly in the country's prosperity and would be used to create new jobs, help to 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."

The opposition Labour Party's 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, Communities Secretary 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."

One billion pounds has already been allocated, with more than half going to towns across the north of England. A further 600 million pounds will 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.

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

First Published: Mar 04 2019 | 10:53 PM IST

Next Story