MICHAEL GOVE has been told a key flaw in his Levelling Up fund is letting down the Highlands and Islands. 

The Secretary of State for Levelling Up admitted the way cash for the Levelling Up Fund was directed was flawed when it was revealed the region of Scotland were given the same priority status as the City of London.

He was grilled by MSPs on Holyrood's Constitutional Committee on Thursday afternoon – a meeting he had repeatedly snubbed. 

READ MORE: Tories using Brexit reforms to 'take back control' of Scotland, Michael Gove told

Michelle Thomson, the SNP MSP for Falkirk East, accused Gove of failing to consult with the Scottish Government over how the allocation of the fund would impact Scotland.

During an appearance before Holyrood’s Constitutional Committee, the minister admitted the information used to make the decisions was “richer” in England than it was in Scotland.

The way the Westminster decided the funding was described as “completely unsound” and was a result of ignoring the Scottish Government, Thomson said.  

She argued areas such as Orkney, Shetland and the Highlands should have been given more priority because of their poor transport links – which were described as “more than lifeline services”.

A failure to account for the unique challenges such areas face because of their remoteness meant they were “placed in the category least likely to benefit from the fund – alongside areas such as the City of London”.  

The National:

Thomson added: “How on earth did that happen?

“Had you consulted with the Scottish Government, they might have been able to inform you that was a ridiculous outcome.”

READ MORE: Michael Gove 'disrespecting' Scottish Parliament with repeated snubs

In a bizarre attempt to deflect criticism, Gove said his opponents were attempting to say "you know how a play is going to turn out on the basis of which character appears first” – referring back to earlier suggestions the methodology for the first round of funding would be reconsidered.

He added: “We’ll have to wait until the curtain falls at the end of the allocation of these three rounds.”

The National:

Three projects in and around Inverness were funded with £20 million allocated to the Highland Council, Gove said.

But bids from Orkney Council and Shetland Council were shot down by Whitehall. The City of London – one of Britain’s richest areas – did not make any applications to the fund.

Despite insisting the decisions were made “objectively”, Gove conceded the final call rested with ministers.

It was a concern shared by Ross Greer, the Scottish Greens’ external affairs spokesperson, who also sits on the committee.

He urged Gove to guarantee the Highlands and Islands would see “no detriment” to their incomes because of the UK Government’s methods of replacing vital EU funding which is being phased out.

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The new UK system does not give weight to transport links as a measure of deprivation in Scotland, but does in England. 

Greer added: "The EU recognised the need to prioritise funding for such areas but astoundingly, the UK Government has designed a system which does not even recognise the lifeline nature of transport services for our islands.

"This is despite the same system in England giving high importance to transport issues.

"This is yet another example of Scotland being worse off as a result of a Brexit process we voted overwhelmingly against.”

Areas are placed in one of three tiers which partially determine how likely they are to receive Levelling Up cash. The number of successful applications is capped by UK Parliament constituency.

Priority is determined by factors intended to show levels of poverty and poor “economic resilience” – which is why poorer cities such as Dundee have higher priority than the richer islands.

The first round of funding saw the UK Government spend more than £1.6 billion on projects throughout the UK.

But there has been fierce criticism the funding arrangement ignores devolution and the Scottish Parliament while also not being targeted in the areas which need it most.

A Scottish Government spokesperson said: "We welcome all extra funding for Scotland but it is unacceptable for the UK Government to decide how money should be spent in areas of devolved responsibility without any meaningful consultation or engagement.

“The Scottish Government should decide how funding is delivered in Scotland, in line with the devolved settlement.

“That position is supported by recent assessments from the House of Lords, the Scottish Affairs Committee and the Institute for Government on the need for the UK Government to engage the devolved governments in the design and delivery of the UK Shared Prosperity Fund and related levelling up activity.”

A UK Government spokesperson said: "The first round of the Levelling Up Fund delivered £172million to Scotland, including £20 million to Highland Council.

"This investment was warmly welcomed by local communities and is making a transformative difference.

“We regularly engage with the Scottish Government on a range of issues and we are determined to work closely with them as partners as we level up all parts of the UK.”