UP to £345 million is set to be invested in the Borderlands Growth Deal.

During his spring statement speech on Wednesday, Chancellor Philip Hammond said the UK government will put £260m into the scheme which was set up to help boost the local economy.

Meanwhile Holyrood announced on Tuesday it would set aside up to £85m, over a 10-year-period.

And the funding injection has been welcomed by Tweeddale MP David Mundell.

He told us: "I'm very proud to have played a part by delivering the Borderlands deal from the heart of the UK government.

"It will bring real benefits to constituents and do much to bring new jobs and opportunities in the context of a tough couple of years for the local economy.

"This is an example of both Scotland's governments working together for local people and recognises the importance of cross-border relationships.

"The deal will boost economic growth by helping existing business, encouraging new ventures and bringing a wealth of improvements to people who live and work in the area and to visitors.

"It is an ambitious approach to cross-border working between the governments, local authorities and partners and I’m confident that together we can create jobs and opportunity and bring investment."

The deal is the first to involve partners either side of the border and involves Scottish Borders Council, Dumfries & Galloway Council, Carlisle City Council, Northumberland County Council and Cumbria County Council.

And it is hoped the cash will help boost the area's economy and tourism industry.

Announcing the Scottish government's funding pledge on Tuesday, Infrastructure Secretary Michael Matheson said: "I am delighted to confirm that the Scottish government is investing up to £85 million in the Borderlands Deal to support and develop the South of Scotland economy.

"Alongside the establishment of a new enterprise agency for the south of Scotland, and the activity being taken forward by the South of Scotland economic partnership, this investment will help to drive inclusive growth that delivers significant and lasting economic benefits for individuals, businesses and communities right across the region."