British PM unveils $2.1bn fund for Brexit-backing towns

British Prime Minister Theresa May will on Monday set out plans for a 1.6 billion pound ($2.11 billion) fund to help to boost economic growth in Brexit-supporting communities with ministers denying it was a bribe to win support for her EU exit deal.

The government said the money would be used to create jobs, train local people and boost investment, but critics said it was an attempt to convince Labour MPs in Leave-voting areas to back May’s withdrawal agreement and was not enough to offset the impact of Brexit.

The “Stronger Towns Fund” will offer investment to places that have not benefited from economic growth as much as other parts of the country, ministers said.

One billion pounds has already been allocated, with more than half going to towns across the north of England. A further 600 million pounds will be available for communities around the country to bid for, the government said.

Of the money being directly allocated by the government, the northwest will receive the most, with £281m, followed by the West Midlands (£212m) and Yorkshire and the Humber (£197m).

Announcing the fund, May said: “For too long in our country prosperity has been unfairly spread. Our economy has worked well for some places but we want it to work for all communities”.

“Communities across the country voted for Brexit as an expression of their desire to see change – that must be a change for the better, with more opportunity and greater control.

“These towns have a glorious heritage, huge potential and, with the right help, a bright future ahead of them.”

But critics said the move, announced just over a week before MPs are due to vote again on May’s Brexit deal, was designed to buy the support of Labour MPs in Leave areas.

May has talked about increasing funding for deprived communities as part of a package of measures that No 10 hopes will help win MPs’ support for her deal.

Another element – an announcement of guarantees on workers’ rights and environmental protections – is expected this week.