THE Scottish Government has signalled its intention to launch a formal disputes procedure with the UK Government over Theresa May's “squalid” £1 billion deal with the Democratic Unionists, which could end up in a face-to-face showdown between the Prime Minister and Nicola Sturgeon.

 

Keith Brown, the SNP administration’s economy secretary, was in London for a raft of pre-arranged meetings with transport, defence and pensions ministers although his planned talks with Greg Clark, the business secretary, were called off; Mr Brown said he felt he had been snubbed by the cabinet minister.

 

Despite his talks on a number of issues, the one overshadowing his visit was the row, which has blown up over Mrs May's agreement with Arlene Foster’s DUP. This will see Northern Ireland get £1bn extra for public services during the next two years in exchange for the DUP's 10 MPs backing the Tory Government in key Commons votes, thus providing it with a working majority.

 

While Whitehall has insisted the agreed windfall is outwith the usual distribution method of the Barnett Formula, Mr Brown claimed it breached the fair funding rules established with devolution and that Scotland was, consequently, entitled to £2.9bn.

 

“This is not about saying actually we have an issue in Northern Ireland, we have to give them some more health and education funding, this is about preserving the Tories in power; it’s a squalid deal. It’s not transparent in its effects on the rest of the UK. That’s why we are saying it’s wrong,” declared Mr Brown.

 

His colleague, Derek Mackay, the Scottish finance secretary, last week wrote a letter to Liz Truss, the chief secretary to the Treasury, asking for details about the DUP deal and raising the prospect of invoking a formal dispute.

 

“Derek Mackay is the one who is taking that forward and he has said he will instigate the disputes process,” explained Mr Brown.

 

He went on: “If there is no resolution, then yes[the dispute procedure should be invoked]. Of course, if it offends against the fair funding principles, then we should challenge it.”

 

Mr Brown said Ms Truss, in her response to Mr Mackay’s letter, had made clear there would be no change to UK departmental spending. “The reason why this is important is that means the money for Northern Ireland has to be found from other UK budgets…Scotland, far from getting its share of the deal, is potentially going to have to contribute towards the deal,” said Mr Brown.

 

He added: “The UK Government’s current position goes directly against the principles of devolution and we will be looking for cross-party support for the Scottish Government’s position.”

 

The dispute process is governed by the joint ministerial committee[JMC], the intergovernmental body that involves Edinburgh, Cardiff, Belfast and London.

 

This would include a meeting of the relevant parties, possibly including the secretaries of state, chaired by a UK Government minister, who would “as far as possible be someone without a direct departmental interest in the issue in dispute”.

 

If the dispute were not resolved, then the parties could agree to disagree or “exceptionally, a request[can be made] by any party that the dispute be considered by a JMC plenary meeting.” Such plenary meetings involve the First Ministers from the devolved administrations and are usually chaired by the Prime Minister herself.

 

Asked if he was confident that the Scottish Government would get the £2.9bn it was seeking, Mr Brown replied: “Whether we get it or not, it’s essential that the Scottish Government continues to make the case for it.”