Scotland hosting the 2026 Commonwealth Games using Victorian government money will add to the "embarrassment" faced by the state, Nationals leader David Littleproud said.

Commonwealth Games Scotland said it will use almost $200 million of Victorian government money to deliver an "innovative, cost-effective and sustainable" Games in Glasgow in 2026.

In response to UK media speculation about the destination of the beleaguered 2026 edition of the Games, Commonwealth Games Scotland (CGS) said it could host the competition without any financial support from Scottish or UK governments — thanks in part to the compensation paid to the Commonwealth Games Federation by the Victorian government.

"In April, CGS revealed details of an innovative, cost-effective and sustainable concept for the Games without the need for significant public investment," the statement read.

"Unique to this opportunity, the Games will be funded by private income rather than the public purse, with the majority of costs covered by the CGF, using money secured in a compensation negotiation with the Victorian government following their withdrawal as hosts in July 2023."

Littleproud told Channel Nine's Weekend Today program that the news was a reminder of "the embarrassment that the Victorian government imposed on Australia" by cancelling the Games.

"This just adds to the embarrassment that the Victorian government imposed on Australia by making an election promise to run the Games, to try and win votes during the election and then, when it all became too hard, decided to cut and run," Littleproud said.

"I get it, it was going to cost a lot more, but if you look at the Gold Coast, they were prepared to run this rather than hand it over to someone else because they were going to utilise the legacy infrastructure that was there, which is what Scotland is doing.

"I would have thought the prime minister would have weighed in on this and made sure that we weren't internationally embarrassed, shared it around the country on the infrastructure that we've got. 

"We've got great sporting infrastructure. We could have shared it outside Victoria, even if it wasn't just the Gold Coast, it was Gold Coast and Brisbane, a good rehearsal for the Olympics. 

"But unfortunately we've forked out $600 million and it only took the Scots $200 million to run a Games. 

"It sort of says maybe we've got some of our priorities wrong here. Good on the Scots, but I think the poor old Vics will be a bit embarrassed today."

The stripped-back Games proposed by the CGS would feature a streamlined program of just 10 sports, half the number that featured in Birmingham, on a budget of £114 million ($221 million).

That includes the use of just four existing competition venues — all within a 13km corridor — to be upgraded and used, with existing accommodation available to house a smaller number of athletes and support staff.

Ian Reid, the chair of the CGS, said it would be a "travesty" if the UK and Scottish governments turned down the "chance to bring wide-ranging benefits to the country and public purse."

"The Games will undoubtedly look and feel different to the historic events of 10 years ago," Reid said, referring to the last time Glasgow hosted the Commonwealth Games in 2014.

"However, the circumstances facing us are remarkably different – the 2026 Games hang in the balance and the UK finances are facing tough decisions. But the Games presents a real opportunity for Glasgow and Scotland.

"That is £100m+ of inward investment at a time when there are critical works needed in the city; that investment alone would account for five per cent of the overall inward investment into Scotland over the past year. 

"To potentially turn down such a significant sum of money, which only serves to boost the Glasgow and Scottish economies and has been deliberately created not to rely on the public purse at a time of economic uncertainty, is – in our opinion – short-sighted.

"We are confident of delivering a world-class sporting event to packed crowds in Glasgow, with some of the world's sporting stars providing inspirational moments for the millions of spectators in Scotland, the UK and across the Commonwealth.

“A decision over the coming weeks is critical to deliver the Games – we believe the concept is a no-brainer."

The 2026 Commonwealth Games have been beset by questions over their viability for years.

Victoria had initially volunteered to host the 2026 Games after no bids were submitted.

However, in July 2023, then-premier Daniel Andrews warned cost estimates for the event — which had been originally proposed at $2.6 billion — had blown out to almost $7 billion.

Victoria's Auditor-General released a report in March that found those cost estimates by the state government were "overstated and not transparent".

The Gold Coast had offered to step in after Victoria reneged on its promise to host, but could not garner enough support.

A Victorian government spokesperson doubled down on its stance, saying the auditor-general's report confirmed $6 billion was too much to spend on the Games and other cities' bids "are a matter for them".

"When the Commonwealth Games needed a host city to step in at the last minute, we were willing to help – but not at any price, and not without a big lasting benefit for regional Victoria," a spokesperson said.

"We are getting on and ensuring regional Victoria still receives the housing, tourism and sporting infrastructure benefits that would have been facilitated by the Games – and more."