Scotland to get £193m at expense of English areas

The Scottish Government had been facing a 32 per cent cut in European Structural Funds to tackle poverty following Conservative Prime Minister David Cameron’s EU budget talks, at which he negotiated a real-terms cut in EU spending.

However, last night it was announced that Scotland would receive £674m between 2014 and 2020, a reduction of 5 per cent instead of the 32 per cent it would have got under the EU funding guidelines based on need.

Similarly, Northern Ireland’s allocation is up £154m to £388m, and Wales up £318m to £1.82 billion, as they both also took a cut of just 5 per cent.

But the losers are the English regions which have seen their recommended funding level cut by £665m to £5.24bn.

Downing Street last night insisted that the decision had “nothing to do with the independence referendum” in Scotland.

Liberal Democrat Scottish Secretary Michael Moore said: “By sharing the cut in EU structural funds across the UK, the government is protecting Scotland from the big cut we would otherwise receive.

“Scotland will now get £193m more than it would if the EU funding formula was applied directly.”

He pointed out that if Scotland was independent, it would have been forced to accept the full cut in structural funds.

He said: “By being in the UK, Scotland has not only got a better EU budget deal; we will also get better funding from Brussels – creating jobs and supporting communities.

“Just a few weeks ago the Scottish Government put out a scare story saying Scottish funding was set to fall by 32 per cent.

“Now we can confirm that an independent Scotland would face that 32 per cent cut – and only an independent Scotland – because it would not have the UK’s flexibility.”

Conservative business minister Michael Fallon added: “EU Structural Funds are important for supporting economic activity. The EU formula would have seen several areas in most need of funds lose out, so we have taken the decision to correct that.

“It is important that these areas use this funding to help deliver strong, sustainable growth and assist in rebalancing the economy.”

However, the SNP claimed that the decision was a result of the pressure put on UK ministers by the Scottish Government.

SNP MSP Christina McKelvie, who convenes the European and external affairs committee, said: “Of all the U-turns that Westminster has made in recent years, this is undoubtedly one of the most welcome.

“While a fall in funding for Scotland was expected, the 32 per cent reduction that Westminster had lined up was deeply disproportionate.

“The Scottish Government has successfully made that case to the UK government and secured a much-needed U-turn from Westminster.”