THE GOVERNMENT has hatched a plan to avoid giving extra cash to Scotland and Wales as a result of the proposed deal with the DUP, it was reported today.

The Tories are set to hand over as much as £2billion in new funding for Northern Ireland in order to secure support from the unionist party.

3 The DUP, led by Arlene Foster, has asked for as much as £2billion in extra funding Credit: Getty Images

And it has been suggested these handouts would trigger billions more in payments to Scotland and Wales too, because of devolution laws.

But ministers are reportedly planning to exploit a loophole which would allow them to reclassify the payments as "grants".

This would let them give money for Northern Irish infrastructure without triggering the "Barnett formula" governing funds to Wales and Scotland.

3 Ian Blackford, the SNP's leader in Westminster, insists that Scotland must get additional funding too Credit: PA:Press Association Wire

The news provoked fury among the SNP, who warned that they would seek to block any deal which left Scotland short-changed.

The party's Westminster leader Ian Blackford told the Sunday Telegraph: "There would be absolute outrage if on the back of a shabby deal between the Tories and the DUP there wasn't consequential investment for Scotland.

"I understand why the DUP would want to do a deal that involves investment in Northern Ireland. But the need for investment in infrastructure is just as strong in Scotland."

He pledged to work with the Scottish Conservatives to increase funding for Scotland in the event of a boost for Northern Ireland.

Talks between the Tories and the DUP are still ongoing as Theresa May bids to win the support of party's 10 MPs for her Queen's Speech agenda.

3 Theresa May, pictured at church with her husband Philip today, is still in talks with the DUP Credit: David Hartley

DUP leader Arlene Foster is demanding up to £2billion in additional funds from the Prime Minister in exchange for her support - saying that the legacy of the Troubles has harmed investment in the region.

It was claimed that any more money for Northern Ireland would have to be matched with extra funding for Scotland and Wales in proportion to those nations' greater population.

If the Government could classify the Northern Ireland cash as a one-off grant rather than regular spending, it might let them off the hook.

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Even if the Tories cannot strike a formal deal with the DUP, Mrs Foster's party are almost certain to support the Prime Minister in a vote of confidence.

The unionists would not do anything which risks allowing Jeremy Corbyn to enter Number 10.

Although Mrs May pledged to team up with the DUP within hours of losing her majority at the election, the parties have still not concluded their talks after more than two weeks.