Extract from Scottish Parliament Question Time: Finance, Economy and Fair Work - Jun 26

To ask the Scottish Government whether the United Kingdom Government has provided it with details about the shared prosperity fund, which it claims will replace European structural funds, post-Brexit. (S5O-03448)

Despite pressing the UK Government on its proposals for the shared prosperity fund, and stressing that any new arrangements must be co-designed with the devolved Administrations, no details have been provided. As such, we continue to develop our own thinking on future funding arrangements, and we will engage with lead partners, delivery bodies, individuals and communities across Scotland to inform our thoughts. To enable that, I confirmed this morning that we will undertake our own consultation—which will be overseen by an external steering group—to develop a coherent and robust position to ensure that the best interests of Scotland are met.

In response to a question from Patricia Gibson MP, the Prime Minister said that European structural funds

“will indeed be replaced by the shared prosperity fund ... The Government will be consulting before the end of the year”.—[Official Report, House of Commons, 5 December 2018; Vol 650, c 890.]

That referred to the end of last year. What are the implications of a delay in taking forward that new fund?

The Scottish Government has not been consulted on the issue. The lack of consultation and subsequent delay have the potential to have significant social and economic impact on local communities and projects, including third sector groups across Scotland that receive support through the current European structural funds programme. The Scottish Government, Wales and Northern Ireland must be equal partners in co-designing any system to replace European funding after Brexit. The UK Government must not impose a system on the nations of the UK.

The Industrial Communities Alliance said that the allocation of the funds within devolved nations should be a matter for devolved Governments. Will the minister share with us what the allocation formula would be were the Scottish Government in charge of that fund?

The Scottish Government’s position is that the amount that comes to Scotland under the new shared prosperity fund should be absolutely no less than what we currently receive under UK programmes. That is our position, and we are pushing the UK Government to confirm that there will be no detriment or loss of funding for Scotland under the shared prosperity fund.