Scotland threatens formal dispute over DUP deal

The Scottish Government has threatened to invoke formal dispute procedures with the UK Government as the row over the Conservatives' £1.5bn deal with the DUP intensifies.

Political leaders in Scotland and Wales have reacted angrily to the agreement, which sees Northern Ireland benefit from additional cash while Theresa May gains the support of DUP MPs in crucial votes at Westminster.

Carwyn Jones, Welsh first minister, described it as a "straight bung to keep a weak Prime Minister and a faltering Government in office".

Scotland first minister Nicola Sturgeon tweeted: "Any sense of fairness sacrificed on the altar of grubby DUP deal to let PM cling to power."

Scottish finance secretary Derek Mackay told MSPs at Holyrood the Conservatives were "ripping off Scotland to the tune of £2.9bn".

He claimed it was "unacceptable" the funding for Northern Ireland will not be subject to the Barnett formula's spending rules, which determine how resources are allocated to different parts of the UK.

:: How Northern Ireland's extra £1bn will be spent

Increased spending on devolved issues - including health and infrastructure - for one part of the country usually results in additional money for other areas.

Mr Mackay is demanding talks with Liz Truss, Chief Secretary to the Treasury, and Welsh finance secretary Mark Drakeford to find a "satisfactory solution".

In a letter to Ms Truss, he said: "As this is an issue of such significance to the Scottish Government, if we cannot agree we will look to pursue a more formal mechanism to resolve the situation by invoking the formal dispute resolution mechanism."

He told MSPs: "We don't grudge Northern Ireland a penny - we just want fairness for every other part of the UK, not least in Scotland.

"The spending areas for additional funding for Northern Ireland are devolved areas - infrastructure, health including mental health, education, broadband, deprivation. All within the scope of Barnett."

:: Tory-DUP deal: What it says and what it means

It comes after Defence Secretary Sir Michael Fallon defended the DUP deal, saying it would protect the Government from being "ambushed" on Brexit.

"We can't take a chance," he told Sky News, saying the Government needs to get on "with these huge things like negotiating Brexit, making sure we build up our defences, keeping the economy going".

He continued: "And on these big issue we want to be very sure that if there is ever a vote in the House of Commons we can rely on the DUP for support.

"That's important - to ensure this Government can go forward over the five years of this Parliament knowing on the really big issues that it can't suddenly be ambushed late at night."

He insisted the deal would be good Northern Ireland and the country as a whole.

Under the confidence-and-supply agreement, about £1bn in "new money" has been earmarked for Northern Ireland, as well as greater flexibility over £500m already allocated to the country.

An Government spokesman said: "We are clear this is about delivering for the whole of the UK - so we can get on with our plan to get the best Brexit deal for our country and create and economy that works for everyone.

"Like previous Northern Ireland support packages, and city deals in Scotland and Wales, this funding is a targeted intervention to address a specific set of unique challenges.

"It is not unprecedented, the UK Government has always been able to provide funding outside of Barnett."

The Commons will vote on the Queen's Speech this week.