A £1.6bn fund which is being launched by the government to boost less well-off towns after Brexit is unlikely to benefit Cumbria, says a council leader.

"No matter what happens with Brexit - deal or no deal - Cumbria will lose out big style," said Allerdale Council leader Alan Smith.

"I'm sceptical of anything the Government says about funding, my experience of this sort of thing is it ends at the northern powerhouses of Manchester and Preston, Cumbria is bypassed every time."

The Government announced yesterday that the Stronger Towns Fund, released over the next six years, will be broken down into £1bn, given out using a needs-based formula, and £600m communities can bid for.

More than half of the money will go to the north of England and the Midlands. The North West has been allocated £281m.

Corinne Watson, programme manager for Cumbria Local Enterprise Partnership, said: "We welcome any funding that can be provided to help meet the priorities in our local industrial strategy but until they announce how they will be doing it we do not know what it really means and how it will be allocated."

Councillor Smith said: "We had a meeting last week with eight large businesses in Allerdale and they're terrified of a No Deal. They think this would hit Cumbria hard.

"Carlisle is the Border city with a big industrial area in Kingstown, Copeland has nuclear.

"Allerdale is completely different, we have independent businesses here dependent on Europe. We have seen what's happened in the North East with Honda and Nissan.

"Project Fear is becoming a reality. Businesses are starting to think about stockpiling things so there's an additional cost.

"Brexit could be devastating for Cumbria. If we do not get a deal companies will be stuffed. Even if we do get a deal God knows what will happen. It all puts us in turmoil."

He is no doubt about how badly negotiations have been handled.

"The Government is in such a mess, with so many splits," he said.

"Everyone should have been working together, all the parties trying to find a way forward. It's the most important decision in maybe a generation."

Labour has called the new fund a bribe to influence MPs in Leave-supporting areas to back the PM's Brexit deal.

Mike Starkie, Mayor of Copeland, said: “We are pleased that monies are being allocated to towns across the UK, and obviously Copeland deserves its fair share.

“The investment would give a much-needed boost to our four towns of Cleator Moor, Whitehaven, Millom and Egremont.

“Our Copeland Pride of Place scheme has seen over 100 grants being allocated to businesses across Copeland and this has had a very positive effect on the appearance of our town centres.

“We are also currently in the process of bidding for substantial monies from the government Future High Street Fund to really improve our high streets.

“These three initiatives will be transformational for Copeland if we are successful, and we will be working hard with our MP and Government to achieve this.”

Copeland MP Trudy Harrison welcomed the news of the fund. that £1.6 billion will be released to boost growth and give communities a greater say in their future after Brexit.

“Quite rightly, the North West region will be the biggest beneficiary and I have already began speaking with ministers and colleagues in Copeland to ensure that we are best placed to take advantage of this transformational fund," she said.

“Investment is vital to unlock our social and economic future, we’ll work hard to put forward a successful bid.”