The new Labour government could soon claw back millions of pounds promised to Scotland by Rishi Sunak’s government, Labour’s Scottish Secretary has said.

Ian Murray said many of the funding promises by the last prime minister “didn't have any cash attached".

He said there would be more information in next month’s budget and in next year’s spending review.

The comments from the minister will alarm local authorites who been told to expect millions through the Levelling Up Fund.


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The last government boasted that their “levelling up commitment” to communities totalled close to £2.7 billion, roughly £535 for every person in Scotland.

Projects to receive money included the restoration of Edinburgh’s iconic Granton gasholder, the refurbishment of the Victorian grandstand in Inverness.

There was also £37.4 million to create new commercial buildings, better cycling and walking routes and more electric vehicle charge points across North and South Ayrshire.

Stirling Council won £19m for the regeneration of the Forthside area with 1000 job creation.

A spokesperson for the local authority told The Herald they “had no indication of any review into our funding".

Last November, Glasgow City Council were told they would receive almost £15 million to invest in Drumchapel town centre, to improve “connectivity into and around the town to improve retail opportunities and boost the local economy".

They declined to comment. It is understood that the city did receive a confirmation letter from the UK Government in terms of 2024-25 funding in June.

However, Aberdeenshire Council told the Press and Journal that a promise to give Peterhead £20m in endowment-style funding over 10 years from April 2025 as part of the last government’s “long term plan for towns” is now “under threat".

Speaking to journalists, Mr Murray was asked if all spending commitments made by the previous government were being reassessed or if everything promised was nailed on.

“Yes, a lot of this stuff is all under review,” he said. “It will all be announced in the budget and in the spending review, both for this next financial year and the three-year spending review that will happen in April next year.

“So everything is under review, yes, because a lot of the stuff that was promised didn't have any cash attached to it.”

Mr Murray pointed to the £800m exascale supercomputer in Edinburgh University, which had its funding cut in August.

He said: “This had been announced by three former prime ministers, two chancellors, and was in April's budget, but nobody had ever asked the Treasury for any money.

“So these were just headline-grabbing gimmicks without any money attached.

“We're trying to be honest with the public and say, look, some of these projects, of course, they're all under review, and some of these projects may or may not happen, depending on where the Chancellor goes on 30 October.

“And I think that's the honest thing to say to the public, because that £22bn black hole is real. It's not some arbitrary figure that's been plucked out of the air, and the challenges around public finances are very, very real.”

SNP MSP David Torrance said the comments were “very concerning".

He said: “This funding that was promised by Westminster must not be another casualty of Labour’s austerity agenda, and yet that’s exactly what these comments suggest.

“Not only is levelling up completely absent from their agenda, but the Secretary of State for Scotland is now setting the scene for yet more spending cuts by confirming that all funding is under review.

“This is very concerning for the cities that were expecting this investment and is yet another hammer blow for Scotland, having already borne the brunt of Westminster’s austerity agenda for over a decade.

“The Labour government must urgently clarify the status of the millions that were promised, and for once deliver on their promises to communities across Scotland.”

Scottish Tory MSP Liz Smith said it showed levelling up was “simply not a priority for the UK Labour Government.”

She added: “The levelling up investment from the previous UK Conservative Government helped to transform communities across Scotland.

“They will now be worried that much needed resources are now at risk due to political choices being made by Labour.

“Rowing back on these previously earmarked projects would be a bitter blow for many areas across Scotland who are already being short-changed due to the SNP’s savage funding cuts to councils each year.”