The Prime Minister is expected to spend the money on new road and rail links as well as treating Scottish patients on English NHS beds, according to reports. It comes as the Holyrood election will be held on May 6 with the First Minister pledging to hold another independence vote if elected.
According to the Telegraph, the spending plan will be unveiled days after next week’s Scottish election.
The paper also reported that Whitehall lawyers have been ordered to fight in court any attempts by the SNP to hold a referendum without the UK Government’s consent.
The Prime Minister is expected to chair a meeting at Downing Street with senior Cabinet ministers including Michael Gove and Rishi Sunak as well as secretaries of state for Scotland, Wales and Northern Ireland next week to finalise their response to Thursday’s vote.
Some Cabinet ministers and figures close to Downing Street are said to be worried about Scotland’s election result.
READ MORE: Sturgeon crushed as rejection of UK dubbed ‘perverse’
The First Minister was questioned over how the Scottish economy would be bailed out of a crisis without its own central bank or currency during a BBC interview.
Ms Sturgeon said she would only outline the specifics before a second independence vote.
In response to the interview, Twitter users accused the First Minister of being “clueless” over Scottish independence.
One user posted: “When it mattered she was clueless you could not make it up.”
While another tweeted: “@NicolaSturgeon is clearly utterly delusional!”