SCOTLAND and Wales are not to receive a penny of extra funding despite the Treasury having told them to expect hundreds of millions in extra cash just last week, according to devolved leaders.

However, the Treasury has insisted this is not the case, and "new" money will flow to Scotland and Wales.

The Welsh First Minister and Scottish Finance Secretary took to Twitter to say there will be “no extra money” for their devolved nations despite previous promises from Chancellor Rishi Sunak.

On February 3, the Treasury announced plans to hand a £150 council tax rebate to every house in bands A-D, accounting for a total of around 80% of English households.

This formed part of the Tory government's plan to tackle the growing cost of living crisis.

“Devolved governments in Scotland, Wales and Northern Ireland are expected to receive around £565 million of Barnett funding as a result of the Council Tax Energy Rebate in England,” the Treasury added.

Sunak also repeated this claim in Parliament more than once.

"I am happy to confirm that the Barnett consequentials for Scotland will be around £290 million," he told MPs.

"Because the council tax system is England-only, total Barnett consequentials of about £565 million will be provided to the devolved administrations in the usual way," Sunak also claimed.

The National: Rishi Sunak

The Chancellor (above) also said he could "confirm ... £175 million or so in Barnett consequentials" for Wales, and later scolded a Welsh Labour MP for "not welcoming" the cash.

However, Labour First Minister Mark Drakeford has now said that no further money will be coming to his administration. 

He wrote on Twitter: “Last week @HMTreasury said Wales would receive £175m from its English council tax rebate plan.

“Just as we’re finalising our plans to tackle the #CostofLivingCrisis, we’ve learned there’s no extra money for Wales.

“We will continue to work to support those who need it the most.”

A Welsh Government spokesperson suggested any lack of new funding could be because the council tax rebate announced by the Tories was not truly new money. If no further cash has actually been allocated to England, no consequentials will flow to the Senedd or Holyrood.

Sharing Drakeford’s tweet, SNP cabinet secretary Kate Forbes (below) wrote: “This echoes the position for Scotland. Nevertheless we will honour our commitment to allocate £290m to deal with the cost of living crisis in Scotland, with details announced tomorrow.

“It will require us to revise the latest budget position I set out to the Scot Parl last week.”

This was then shared by First Minister Nicola Sturgeon.

The National: Kate Forbes speaking in Holyrood

A Scottish Government spokesperson added: “The latest information suggests that the further £290 million in cost of living funding announced last week is not likely to be additional to previous consequential funding indications from the UK Government."

However, the Treasury insisted the devolved nations had it wrong, and that Barnett funding would come from the council tax rebate.

A UK Government spokesperson said: “The Scottish Government will receive £296 million of Barnett consequentials as a result of the Council Tax rebate announced by the Chancellor. This is new funding for the Scottish Government.

“People in Scotland expect both governments to be working together for them, their families and communities so we will continue engage with them on this support."

In December, the Tory Treasury was accused of using "smoke and mirrors" after it emerged that its claims of "additional" cash for the devolved nations to fight Omicron was actually money that had already been announced