PLANS for a Scottish replacement for lost EU funds after Brexit have been unveiled — despite ongoing Westminster silence.
European Structural Funding will be lost when the transition period ends on December 31.
The Scottish Government has now revealed its plans for replacing that cash.
The planned Scottish Shared Prosperity Fund (SSPF) aims to “ensure Scotland’s distinctive needs and priorities are met, with a key focus on addressing and reducing economic and social disparity.”
It is announced after a year of behind the scenes work and two years after the UK Government announced its aim to set-up a UK Shared Prosperity Fund (UKSPF).
But Holyrood's Trade Minister Ivan McKee says Westminster has kept devolved administrations in the dark ever since — including how much money it will provide, what it will fund and how it will work.
It's thought those details may come in the Chancellor's forthcoming Comprehensive Spending Review.
But McKee says Scotland “must receive at least £1.283 billion for a replacement seven year programme for 2021-2027”.
And he expects the UK Government to transfer full control over replacement funding to the Scottish Government, with regional partners then playing a “key role” on allocation of SSPF funding and programme development for their areas.
The minister said: “EU Structural Funds have been key to Scotland’s economic development over the past 40 years, investing more than £5.6 billion into a wide range of projects. As the United Kingdom crashes out of the EU at the end of next month so Scotland will no longer have access to such funds.
“Since the UK Government announced its intention to establish a UK Shared Prosperity Fund (UKSPF) to replace these funds in 2018, it has failed to engage meaningfully with the devolved nations, providing no detail on how such a fund might work, how much funding will be available and what it will fund in future.
“Scottish Ministers and officials continue to try to engage with the UK Government to secure the information needed to plan for the future. However, the Scottish Government has also sought to develop a position on future funding priorities to ensure Scotland’s distinctive needs and priorities are met.
“The proposals we are publishing today for a Scottish Shared Prosperity Fund have been produced following 12 months of consultation and with the support of an expert Steering Group.
“We will now go on to develop the Fund involving key partners, especially local authorities.
“And we will continue to press the UK Government for full replacement of all lost EU funds – Scotland must receive at least £1.283 billion for a replacement seven year programme for 2021-2027.
“We also expect full control over replacement funding to be given to Scotland. Ongoing attempts by the UK Government to undermine the devolution settlement in relation to powers and funding in this area will continue to be resisted vigorously.”
The SSPF steering group has been co-chaired by Stirling University's Professor David Bell and Professor John Bachtler of Strathclyde University.
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