A PROPOSED new law could risk “excluding” the Scottish Government from decisions about subsidies being given to businesses in Scotland, the SNP have warned – as Plaid Cymru described it as a "power grab".
The Subsidy Control Bill sets out a new set of rules for giving out subsidies following Brexit.
As MPs considered the Bill, SNP shadow economy spokeswoman Kirsty Blackman said: “Given that the devolved administrations have got by law devolved competencies, have got legislation there that is within their competence, it doesn’t make sense that streamlined subsidy schemes should only be able to be made by the secretary of state for the UK Government.”
Moving an amendment calling for devolved governments to share in the new powers, she added: “We are not asking for an overstepping outside the box of what is devolved competencies, we are just asking for parity with the ability for devolved administrations to pay streamlined subsidy schemes.”
The Aberdeen North MP warned that not naming devolved administrations as “interested parties” in the new regime could prevent them from challenging subsidies overseen by the UK Government that have a bad impact in regions under their control.
She said: “I don’t think it is the intention of the Government to exclude the Scottish Government, and the Welsh Government, or the Northern Irish Assembly from making these challenges, but I do think the Bill is written in an unruly enough way, that it potentially accidentally excludes them.”
Blackman also warned that a new database for who received subsidies may not lead to “transparent” record keeping.
She described a planned database of which companies had received subsidies as “rubbish” and added her doubts about making it the responsibility of businesses, rather than the Government or local councils, to keep certain records of the cash awards.
Blackman said: “There is not a requirement on them to be transparent about that record. There’s a requirement on them to keep it, but on them to share that record.”
Plaid Cymru’s Westminster leader Liz Saville Roberts said: “This Bill is an assault on devolution, wilfully ignorant of the needs of the national economies of the UK, or the role of public bodies in advancing them.”
She described it as “yet another power grab that undermines not only devolution but also the levelling up project this Government is allegedly so keen on promoting”.
The MP for Dwyfor Meirionnydd said: “It speaks to an unconstructive disdain for the rights and responsibilities of the devolved nations from this Government.”
She called for “a more co-operative and informed subsidy regime”.
The Government needs a “UK-wide” subsidy regime to prevent “harmful distortions” to competition, a minister said after facing the accusations of taking power over business grants from devolved governments.
Business minister Paul Scully told MPs: “The UK Government has engaged regularly with the devolved administrations in the design of the UK Subsidy Control Bill and we will continue to listen carefully to their views.
“It is important to reiterate that the Subsidy Control Bill is a matter reserved to this Parliament. That is because we need a UK-wide regime to prevent harmful distortions of competition and to facilitate compliance with our international obligations.”
He added: “The Secretary of State will act in the interests of all parts of the UK.”
Scully also gave MPs assurances about the transparency of a planned subsidies database, saying: “I take the issue really seriously and I want to confirm my department is working on a programme of improvement on the subsidy database.”
After Scully finished speaking, MPs voted 292 to 31, majority 261, against an SNP amendment which would have made agricultural subsidies exempt from the new rules in the Bill.
Why are you making commenting on The National only available to subscribers?
We know there are thousands of National readers who want to debate, argue and go back and forth in the comments section of our stories. We’ve got the most informed readers in Scotland, asking each other the big questions about the future of our country.
Unfortunately, though, these important debates are being spoiled by a vocal minority of trolls who aren’t really interested in the issues, try to derail the conversations, register under fake names, and post vile abuse.
So that’s why we’ve decided to make the ability to comment only available to our paying subscribers. That way, all the trolls who post abuse on our website will have to pay if they want to join the debate – and risk a permanent ban from the account that they subscribe with.
The conversation will go back to what it should be about – people who care passionately about the issues, but disagree constructively on what we should do about them. Let’s get that debate started!
Callum Baird, Editor of The National
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules hereLast Updated:
Report this comment Cancel