Dundee and Arbroath could lose out on a combined £40 million as the new government reviews “unfunded” Conservative promises.
Both areas were promised £20 million in “levelling up” cash, designed to pay for major community improvements.
In the last Tory budget, Arbroath was awarded funding to be used over 10 years.
In May, £20 million was announced for Dundee – said to be the first of a series of new tailored partnerships.
But Scottish Secretary Ian Murray has cast doubt on whether the cash will actually be available.
He told The Courier: “Everything is under review because a lot of the stuff that was promised didn’t have any cash attached to it.
“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 are under review, and some may or may not happen depending on where the Chancellor goes on October 30.
“I think that’s the honest thing to say to the public, because that £22 billion black hole is real. It’s not some arbitrary figure that’s been put out there.”
The £22bn figure emerged after the Treasury looked at spending and projected shortfalls under the previous Tory government.
‘Highly concerning’
In Arbroath, local farmer Peter Stirling was appointed to help marshal the cash.
Stephen Gethins, SNP MP for Abroath and Broughty Ferry, said he has been working with businesses, different political parties and community leaders on the assumption this money will “transform” the town.
“I have been so impressed by the way in which the town has come together and the board has hit the ground running with exciting and innovative ideas in how we can make this funding work,” he said.
“I have also highlighted this work to UK Government ministers reminding them both of Arbroath’s potential and the hard work that has been done.
“These reports are highly concerning and any reversal of these commitments by the Labour government would be a mistake and a backward step.”
Dundee Central MP Chris Law said: “This is simply not good enough.
“The Labour government must follow through on the promises made to the people of Dundee and deliver this funding, now.”
Earlier this week The Courier reported that £5 million promised for Perth is also part of the review.
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