UK and Scottish governments unveil cross-Border deal

The UK and Scottish governments today unveiled a unique cross-Border deal to stimulate economic growth in the south of Scotland and north of England.

Under a version of the 'city deals' projects ministers in Westminster and Holyrood are contributing cash to stimulate the economies in five council areas north and South of the Border.

In his Spring statement today Chancellor Philip Hammond announced up to £260 million from the UK government will be spent over 15 years on the scheme, known as the Borderlands Growth Deal.

Also today the Scottish government's infrastructure secretary Michael Matheson promised £85 million over ten years.

Credit: ITV Border

The idea of a Borderlands deal was first promised in the Conservative party's 2017 UK general election manifesto and has been championed by Scottish Secretary and MP for Dumfriesshire, Clydesdale and Tweeddale, David Mundell.

However, Scottish ministers have also been keen to support economic development across Scotland and have put money alongside the UK government into 'city deals' for areas including Glasgow and Perthshire.

Talks between the Scottish, UK governments and the five councils - Dumfries and Galloway, Scottish Borders, Carlisle City, Cumbria County, and Northumberland County - have been taking place to hammer out the details.

Chancellor Philip Hammond Credit: PA

The final proposals are likely to be agreed by the summer but investment in cross-border infrastructure - including roads improvement, faster broadband, tourism and skills development - are among the most likely uses for the money.

After his statement, Mr Hammond said:

David Mundell added:

Scotland's Infrastructure Secretary Michael Matheson said:

South of Scotland Labour MSP Colin Smyth welcomed the announcements but was critical of the amount given to the south of Scotland.