Dunfermline and Perth will NOT receive the £5 million promised to them after a review by the government.
Both were given provisional awards to be used for cultural projects by the previous Conservative government.
But a review by the new Labour administration to assess value for money has concluded it should not go ahead.
SNP MP Pete Wishart branded the move “unforgivable”.
In a letter to Fife Council leader David Ross, UK communities minister Alex Norris blamed the “challenging fiscal environment” inherited by the government.
He said that while the announcements had been made, they had not been funded by the previous government.
The minister added: “Decisions were taken based on relevant factors, including the impacts of withdrawing funding, and other factors such as maximising economic growth.”
MP admits disappointment
In Dunfermline, the council set out plans to use the £5 million for projects including new cultural spaces.
This included work at the historic St Margaret’s Cave, the Fire Station Creative and Tower House.
Dunfermline and Dollar MP Graeme Downie said: “The blame for this lies squarely with the previous Conservative government and their dodgy accounting but I and everyone else in Dunfermline feel let down and angered by this decision.”
Mr Downie said he had made clear to government he expected better support for the city.
He added: “I will ensure this government does not ignore Dunfermline by repeating the mistakes and broken promises of the Tories.”
But SNP politicians were critical of the move.
Local MSP Shirley-Anne Sommerville said: “In just seven months since electing a Labour MP, we have seen pensioners lose their winter fuel payments, the two-child cap locked in place, WASPI women denied compensation, energy bills continue to rise and now millions in funding snatched away.”
Perth MP Pete Wishart also criticised the government.
‘Conveyor belt of betrayal’
Plans for the £5 million promised to the city included restoration of the Lower City Mills as a tourist attraction.
Around £1.5m was going to be used to convert a long-vacant former foundry next to Perth Museum into “The Ironworks” – an exhibition and workspace for local makers.
Mr Wishart told The Courier: “The UK Government’s handling of Perth’s levelling up funding has been utterly farcical.
“For months, I have raised this with practically every minister I could think of to try to get clarity on what is happening, only to get a different response each time.
“The projects this funding was going to be used for would have been transformative for Perth, helping to boost footfall and trade, and further establish the city as a cultural tourism destination.
“This Labour government has become nothing more than a conveyor belt of betrayal for my constituents.
“In just six months, they have taken the Winter Fuel Payment from our pensioners, abandoned our Waspi women, and tax-raided our farmers and small businesses.
“But despite all that, they can’t even find it in themselves to honour this paltry £5 million. Simply unforgivable.”
Conversation