MAJOR doubts hang over the fate of £20 million promised to Greenock as the UK Government reviews the country's finances.

The town was awarded the funding last year as part of the Conservative government’s 'levelling up' agenda.

The cash was to be used to help improve the town centre and boost regeneration.

It came from the UK Government’s Long Term Plan For Towns Fund and is separate from the levelling up money which has been set aside to cover the costs of demolishing sections of the Oak Mall and bring the A78 flyover down to ground level. 

But there are now questions over whether the cash will materialise after the new Labour government announced a major review of spending commitments to plug a £22 billion hole it says was left behind by the Conservatives.

READ MORE: 'Towns tsar' in Greenock call to action over £20m funding plan

When the Telegraph approached the UK Government about the fate of the cash promised to the town, we were told a final decision would be made after its spending review is complete - meaning the money is no longer guaranteed.

A UK Government spokesperson said: “We are assessing the challenge of a £22 billion in-year black hole in the finances we inherited from the previous government.

“A decision on funding will now be made following the spending review process.

“We recognise the impact on communities and will continue to keep the relevant partners informed and provide further clarity as soon as possible.”

In response to the government’s statement, Greenock and Inverclyde MSP Stuart McMillan told the Telegraph the doubt over the funding was "disappointing and concerning".

The SNP politician said: “Consecutive UK Tory governments who were in power for 14 years have left the UK in a terrible financial state.

“Their austerity agenda and reckless mismanagement of the economy has harmed Scotland for all those years.

“So, when the leader of Scottish Labour told voters during the general election that there would be ‘no austerity under Labour’, voters believed him.

“Yet less than three months into the job, Labour are reneging on that promise.

“Greenock has faced challenges for decades, and although the £20m Towns Fund won’t fix them all, it could be a catalyst to help turn around the fortunes of the town.

“It’s therefore hugely disappointing and concerning that the funding appears to be under threat.

“In 2014, Scotland voted 55 per cent to 45 per cent in favour of staying in the union. Many Labour politicians and supporters at that time said we don’t need independence because Labour will sort everything when they get back into power.

"So far, they are proving the exact opposite.”  

Inverclyde's new Labour MP, Martin McCluskey, said he had already lobbied for the Greenock cash to be kept in the government's spending plans.

Mr McCluskey said: “The government is cleaning up the mess left by the last government, and the budget will be announced on October 30.

“As I said during the election campaign, this government will not play fast and loose with taxpayers' money, which is why we are running a proper budget process. 

“Since being elected I’ve done three things in relation to the towns fund.

“First, I’ve met with Alex Norris, the minister responsible for the Towns Fund in Ministry of Housing, Communities and Local Government, twice since July to impress upon him the importance of this funding for Greenock and talk him through the plans. Those points were well understood.

“Second, I’ve discussed our Towns Fund funding with the Secretary of State for Scotland.

“Finally, just a few days ago I welcomed the Scotland Office Minister to Inverclyde, and she attended the Inverclyde Taskforce.

“She spent the day understanding the opportunities in our community and visiting the areas where 'levelling up' funding will be invested.

“She was also able to take questions from councillors across the political spectrum on this and other issues. 

“I will continue to make our views heard on this and all issues, as I have done since July.

“We also shouldn’t stop at the Towns Fund and levelling up fund.

"I will carry on making the case for additional investment in Inverclyde, including through investment zones and other funding that may be available after the budget.”