Douglas Alexander, Scottish Secretary, revealed the package today from the Local Growth Fund, and said it would boost living standards and improve public services.
The region, which includes Glasgow and seven surrounding council areas, will get £61 from the fund.
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However, after analysing the package, Suan Aitken, leader of Glasgow City Council, who chairs the City Region, said it was a “colossal blow” to communities and rather than provide jobs and support skills development, it would result in less action.
She said the Local Growth Fund replaces the Shared Prosperity Fund, which was a replacement for EU Structural Funding lost as a consequence of Brexit.
The council leader said the funding is a cut of tens of millions of pounds.
She said: “The funding cuts announced by the Secretary of State today are a colossal blow to crucial projects supporting employment and communities in every part of Glasgow City Region.
“Across the region, the total value of this fund will be just under £61 million over the next three years – that’s a massive £30 million less than was delivered by the Shared Prosperity Fund in the previous three years.”
Aitken said when the cash is examined more closely, it is “even more concerning”.
She said: “Under UKSPF, most of the money our region received was revenue funding – under this new fund, that will fall to just 30%.
“Taken alongside the headline cut, that means a drop from almost £66.5 million to just over £18 million.
“Cash will also reduce year-on-year, with a revenue budget of just £4.8m across the entire city region in the third year – barely half of what Glasgow alone received in the current financial year.”
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Announcing city’s share of the £140m funding pot Alexander had said: “The UK Government is today backing regional economies across Scotland with £140 million of new investment.
“This new investment will allow local leaders to decide how best to use the funding, which could include projects to improve infrastructure, business support or skills development.”
Aitken, however, said rather than improving incomes and living standards, as the Scottish Secretary said, it will see a cut in support available.
She added: ““There is still no clarity on what the rules of the funding will be, but it is painfully difficult to understand how the Secretary of State expects any of this to boost living standards.
“In reality, it is unfortunately inevitable that today’s announcement will mean a drastic reduction in support for employability, business support, skills, innovation and the third sector right across the Clyde Valley.”
The UK Government has been contacted for comment.
