A £20 million fund to rejuvenate Peterhead is at risk in a review of budget-busting promises made by the last Tory government.
The town was promised the cash windfall by former Tory chancellor Jeremy Hunt in March, as part of the previous government’s “levelling up” agenda.
But new Labour Scottish Secretary Ian Murray has now suggested previous ministers had “in some cases made promises to communities they knew they could not keep”.
In a letter to North East Conservative MSP Liam Kerr, he said “difficult choices will need to be made to reduce the pressure on public finances”.
The money was to be spent over the next decade on “projects that matter to local people”.
More playparks, a new town centre entertainment venue and a revamp of Lido have all been suggested as potential ideas by locals.
But the spending plans were put on hold when Labour entered Number 10, and they have since announced spending cuts to plug a £22 billion black hole.
Peterhead and Kirkwall, Orkney, were both named in an extension of the Long Term Plan for Towns funding scheme earlier this year.
In the letter, Mr Murray said the UK Government is “working through the options available” and will confirm its plans in “due course”.
He added: “The UK Government is committed to developing a new approach to growth, one that is fit for a changed world.”
‘Strong signal’ that Labour will not honour previous government’s plans for Peterhead
Mr Kerr described the remarks as a “strong signal that Labour aren’t going to honour the previous UK Government’s plan for Peterhead”.
He added: “Most, if not all, of the Scottish locations in the long-term plan have already set up independent boards to help investment over that 10-year period.
“Labour can rebrand departments involved, call it a different name, whatever they need to do in order to claim ownership of the project — Peterhead needs this boost far more than it does politics.”
Gillian Owen, leader of Aberdeenshire Council, said: “We continue to work directly with the UK Government on the Long Term Plan for Towns. At this time, the UK Government has not confirmed this fund is under threat.
“It would be really disappointing if this was the case, as the Peterhead community has worked very hard to establish its dedicated Town Board and work has started on formulating a project plan.”
Peterhead was also awarded £20m in January last year to help transform Arbuthnot House on Broad Street into a new museum, library and cultural hub.
Part of that funding is also being used to expand the aquarium in Macduff.
Meanwhile, Elgin was named as the recipient of £38m last year from the levelling up programme to revamp the town centre.
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