The UK Government’s Levelling Up policy is failing to match the needs of rural Scotland, Nicola Sturgeon has claimed.
The first minister said more remote areas were being “ignored” by the scheme which aims to pour money directly into local communities.
Ms Sturgeon said that while extra cash from Westminster is “welcome”, it should be devolved to Holyrood where it can then be spent.
The Conservatives – who angrily denied the claim at Holyrood – announced billions in funds for local authorities across the UK to spruce up town centres, improve transport links and help create jobs.
It was a mixed bag for councils across the north and north-east – with some left feeling shortchanged by the awards.
Nicola Sturgeon has some nerve suggesting there is a divide here.
– Tory MSP Maurice Golden.
Shetland is to get £27 million to boost ferry services, while Peterhead will benefit from funds as well.
However, it was disappointing news for Elgin Council after their bid for £18m to rejuvenate the town was rejected.
Elsewhere, Highland missed out on cash to invest in Skye’s Portree Harbour and the North Coast 500, a popular driving route around Scotland’s north coast.
During First Minister’s Questions, Ms Sturgeon said: “We fundamentally disagree with Westminster making decisions in devolved areas.
“Any additional funding is welcome, but this should be devolved through the Barnett Formula.
“The fund overlooks Scotland’s distinct economic needs. The latest awards show that many remote, rural and sparsely populated regions are being ignored.”
But the Scottish Tories disputed claims rural areas were being shortchanged and highlighted the funds given to Shetland.
North East MSP Maurice Golden said: “Nicola Sturgeon has some nerve suggesting there is a divide here. Setting people against each other is the SNP’s daily bread.
“I suspect she doesn’t see much of Shetland, Aberdeenshire or Dundee from Bute House, or some of the other rural and urban areas which have or will benefit.
“Levelling up means Fair Isle can still be inhabited. Compare that to the SNP’s ferries fiasco.”
The first minister criticised the decision to reject bids from councils who had previously been awarded funds after they forked out money to apply this time around.
Elgin’s application cost £325,000. They paid £200,000 of this and Westminster covered the rest.
Ms Sturgeon added: “The UK can, of course, still choose to devolve funding to Scotland for our share of the remaining Levelling Up funding, and we would be happy to discuss this with them.”
However, the SNP have not escaped criticism from rural Scotland for failing to offer investment.
Skye councillor John Finlayson, who chairs his local area’s council committee, said the Scottish Government had overlooked Skye in their island growth deal.
He said: “I am really disappointed and actually angry that twice last week when funding was made available from both the UK Government and the Scottish Government, Skye and Raasay were not considered.”
He said the failure to obtain any Levelling Up funds from the Tories “felt like a slap in the face”.
The Levelling Up scheme was first created by Boris Johnson when he was prime minister.
Rishi Sunak insisted the latest awards would help grow the economy and would be “transformational”.