Brexit: May accused of 'bribing' Labour MPs as new £1.6bn fund for deprived towns unveiled

Ministers say new funding will create jobs and boost investment, but critics say it 'smacks of desperation'

The government has been accused of “bribing” MPs to back Theresa May‘s Brexit deal after announcing a new £1.6bn fund to help deprived towns.

The “Stronger Towns Fund“ will offer investment to places that have not benefited from economic growth as much as other parts of the country, ministers said.

The government said the money would be used to create jobs, train local people and boost investment, but critics said it was an attempt to convince Labour MPs in Leave-voting areas to back Ms May’s withdrawal agreement, and was not enough to offset the impact of Brexit.

£1bn of the funding will be allocated to areas across the country, with more than half going to towns in the north of England. The other £600m will be available for local authorities to bid for.

Of the money being directly allocated by the government, the north west will receive the most, with £281m, followed by the west Midlands (£212m) and Yorkshire and the Humber (£197m).

Announcing the fund, Ms May said: ”For too long in our country prosperity has been unfairly spread. Our economy has worked well for some places but we want it to work for all communities.

“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.

“These towns have a glorious heritage, huge potential and, with the right help, a bright future ahead of them.”

But critics said the move, announced just over a week before MPs are due to vote again on Ms May’s Brexit deal, was designed to buy the support of Labour MPs in Leave areas.

Ms May has talked about increasing funding for deprived communities as part of a package of measures that No 10 hopes will help win MPs’ support for her deal.

Another element – an announcement of guarantees on workers’ rights and environmental protections – is expected this week.

Labour’s shadow chancellor, John McDonnell, said: “This towns fund smacks of desperation from a government reduced to bribing MPs to vote for their damaging flagship Brexit legislation.

“The reason our towns are struggling is because of a decade of cuts, including to council funding and a failure to invest in businesses and our communities.”

And Anna Soubry, The Independent Group’s Brexit spokesperson, said: “Investment in skills and training is always welcome but we need to go behind this new fund and see it for what it is – a desperate measure to buy votes, and sadly this government has a strong record on that score.

“The support of the DUP was secured with a £1bn bung-for-votes to prop up the government after it lost its majority. Now Theresa May is so desperate to get votes for her bad withdrawal agreement she is relying on the same old trick.”

But James Brokenshire, the housing and communities secretary, insisted the fund showed that the government was listening to MPs’ concerns.

He said: “We have listened to people who are concerned by momentous changes to their communities and I am determined to provide the support they need to create a more prosperous future beyond Brexit.

“This major new fund builds on more than £9bn in City and Growth Deals we have delivered since 2010 to help hard working people reach their full potential and to build an economy that works for everyone.”