Chancellor's Brexit pledge 'not enough for Scotland', says Finance Secretary Derek Mackay

Derek Mackay (Andrew Cowan/Scottish Parliament)

THE Scottish Government has said the Chancellor’s pledge to protect EU-backed projects will not end the post-Brexit uncertainty for communities.

Philip Hammond will guarantee Government funding for projects backed by the EU, which are signed off before this year’s Autumn Statement, at a cost of £4.5 billion a year to UK taxpayers.

However, Scottish Finance Secretary Derek Mackay said the “limited” funding was still hundreds of millions of pounds short of what Scotland would receive as a member of the EU.

Mr Mackay said: “We will study the detail but what is already clear is the Chancellor’s approach falls far short of what fishermen, farmers and communities across Scotland need.

“A limited guarantee for some schemes for a few short years leaves Scotland hundreds of millions of pounds short of what we would receive as members of the EU.

“Major funding streams such as contracts for EU structural funds and European Maritime Fisheries projects beginning after the Autumn Statement have no guarantee of continuation at all. That simply isn’t good enough.”

With Brexit creating anxiety around jobs and investment, Mr Mackay urged Prime Minister Theresa May to take steps to reassure Scots communities.

“Scotland didn’t back Brexit and doesn’t want Brexit,” he added. “We certainly should not now see funding and investment hammered as a result.

“Since the outcome of the EU referendum, we have urged the UK Government to provide clarity and certainty on these vital funds.

“Yet, all that is clear with this announcement is that the uncertainty will continue.”

Philip Hammond (Jack Taylor/Getty Images)

Mr Mackay confirmed the Scottish Government would work with the Treasury “to seek a way forward”, but stressed that the jobs, investment and services which depended on European funding could only be secured beyond 2020 by maintaining Scotland’s relationship with the EU.

First Minister Nicola Sturgeon has pledged to “explore all options” to keep Scotland in the EU and said another independence referendum was “highly likely”.

Mr Mackay’s statement came yesterday after the Chancellor moved to calm fears of a post-Brexit funding gap.

Among Mr Hammond’s pledges were that the current level of Common Agricultural Policy (CAP) funding for farmers would be matched by the UK after it comes out of the EU until 2020, as a domestic system was put in place.

He said: “The UK will continue to have all of the rights, obligations and benefits that membership brings, including receiving European funding, up until the point we leave the EU.

“We recognise that many organisations across the UK which are in receipt of EU funding, or expect to start receiving funding, want reassurance about the flow of funding they will receive.

“That’s why I am confirming that structural and investment funds projects signed before the Autumn Statement will be guaranteed by the Treasury after we leave.

“The Government will also match the current level of agricultural funding until 2020, providing certainty to our agricultural community, who play a vital role in our country.

“We are determined to ensure that people have stability and certainty in the period leading up to our departure from the EU and that we use the opportunities that departure presents to determine our own priorities.”

British Chambers of Commerce acting director general Adam Marshall welcomed the move and said projects “crucial to local business success and confidence” had been at risk since the referendum due to the lack of clarity.

But he added: “The delays that many worthwhile projects face in the approval process must also be cleared away – especially given the fact that the Treasury guarantee only covers projects signed by this year’s Autumn Statement.”

While University of Aberdeen dean for Europe, Professor Dame Anne Glover, warned: “The research community needs to continue pressure to ensure this commitment is fully honoured.”

Meanwhile, Nicola Sturgeon is to meet EU nationals living in Scotland in an attempt to provide “reassurance and certainty” in the wake of the Brexit vote.

The public meeting in Edinburgh will be the first time EU nationals have been given the opportunity to discuss the result with senior politicians, the Scottish Government said.

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