Brexit: Scotland government demands lost EU funding be ‘replaced in full’ by Treasury after UK's exit

Sign up to our free Brexit and beyond email for the latest headlines on what Brexit is meaning for the UK

Sign up to our Brexit email for the latest insight

Please enter a valid email address

Please enter a valid email address

SIGN UP

I would like to be emailed about offers, events and updates from The Independent. Read our privacy notice

The Scottish government wants all lost EU funding currently received by Scotland to be “replaced in full” by the UK Treasury after Brexit.

Representatives from both the Scottish and Welsh governments are due to meet with chief secretary to the Treasury Liz Truss in Cardiff on Friday.

Ahead of the meeting, Scottish finance secretary Derek Mackay said he was “deeply concerned” about the lack of clarity over future budgets and wants assurances that Scotland would “not be financially worse off as a result of the EU exit”.

Welsh finance minister Rebecca Evans has urged the UK government to provide more details on future funding arrangements and changes to public sector pensions.

Mr Mackay said EU funding had supported major infrastructure projects, helped sustain rural communities and financed research for Scotland’s universities.

“With just weeks to go until the planned EU exit day, we remain deeply concerned about the lack of detail regarding replacement arrangements for EU funding streams given their importance to individuals, businesses and communities across Scotland,” he said.

“Today I will be calling on the chief secretary to the Treasury to provide reassurance that Scotland should not be financially worse off as a result of the EU exit and to guarantee that all lost EU funding will be replaced in full.”

Speaking ahead of Friday’s summit Ms Evans said it was vital that Welsh government ministers were “at the heart of decision making and are able to prepare for the impact of Brexit”.

“Alongside this, I will also be pressing for further clarity and assurances about the cost associated with the UK government’s changes to public sector pensions and how it intends to fund it.

“Only last week, the first minister [Mark Drakeford] and local government leaders wrote to the chancellor seeking clarification. Worryingly, even as local authorities are finalising their budgets, there is still some uncertainty about funding.”

The Federation of Small Business (FSB) has also weighed in ahead of the meeting, having previously been vocal about avoiding a no deal Brexit.

Colin Borland, FSB director of devolved nations, said: “It is especially important for Welsh and Scottish local economies that we get both replacement arrangements for EU funding streams and our post-Brexit immigration system absolutely right and that neither nation is disadvantaged as a result of Brexit.”

Mr Borland said businesses expected ministers in London, Edinburgh and Cardiff to work together to prepare for all scenarios.

A Treasury spokesman said: “We are working closely with the devolved administrations so they have the resources to prepare as we leave the European Union.

“This includes allocating £55m to the Scottish government and over £30m to the Welsh government to support Brexit preparations for all scenarios in 2019-20.”

Additional reporting by Press Association