SNP call for David Mundell to act on EU investment after Brexit

The SNP has accused the UK Government of preparing the ground for a nine-figure cash-grab from the Scottish Parliament in a growing row over the future of EU investment funds after Brexit.
By The Newsroom
Published 26th Feb 2019, 05:53 BST
Updated 26th Feb 2019, 07:01 BST

UK ministers plan to replace EU development funds worth £800 million to Scotland over six years with a ‘Shared Prosperity Fund’. However, a consultation on the new system, which will come into force in 2021, has not been published despite a commitment to seek views by the end of last year.

Anna Fowlie, the chief executive of the Scottish Council for Voluntary Organisations (SCVO) has said the lack of clarity is “unacceptable and places communities at risk of losing vital support”.

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SNP MP Drew Hendry said organisations and communities benefitting from EU investment had “no idea what sort of funding will be available after 2020”.

David Mundell has been called on to act.David Mundell has been called on to act.
David Mundell has been called on to act.

The new fund is also the subject of a fresh constitutional tug of war, with The Scotsman revealing last year that Scottish Conservatives are pushing for funds to be distributed by Westminster directly to local authorities in future.

Currently, the Edinburgh government signs off on funding awards in Scotland, with Scottish Tories arguing that SNP ministers have claimed credit for investment made with UK taxpayers’ money.

A senior party source confirmed yesterday that they wanted to “cut out the middleman” of the Scottish Government and have a greater share of the fund administered from London.

Mr Hendry has written to counterparts in other parties, including the Scottish Secretary David Mundell, to warn that the Shared Prosperity Fund “must not be another power grab away from the Scottish Parliament.”

“It is shocking that the UK government has already broken its own word, and failed to consult on detailed plans to replace the lost EU funding and the huge benefits it brings for Scotland,” Mr Hendry said. “It is vital that this investment continues like-for-like, and that the Scottish Government continues to oversee the funding so it meets Scotland’s needs.”

It is understood the consultation on the Shared Prosperity Fund is on hold until the outcome of Brexit is known. The UK Government has guaranteed existing funding for projects to the end of 2020, and says the new fund will “respect the devolution settlements”.