Concern has been expressed over plans for Westminster to manage the replacement for the European Structural Funds
Westminster has been accused of using Brexit to grab control over vital funding for Scottish communities.
European Structural Funds provide nearly €1 billion to Scotland to help people improve their lives and strengthen cohesion with European partners.
The Scottish Government is currently responsible for managing the funding, however the fund’s replacement could be handled by the UK government – sparking concerns from the third sector.
James Brokenshire, secretary of state for housing, communities and local government, revealed earlier this week that the UK Shared Prosperity Fund (UKSPF), which is aimed as a replacement for the money local areas currently receive from the European Union, will operate across the UK.
In a response to a ministerial question, Brokenshire said: “The UKSPF will operate across the UK. The government will of course respect the devolution settlements in Scotland, Wales and Northern Ireland and will engage the devolved administrations to ensure the fund works for places across the UK.”
The funding in Scotland consists of two main streams: the European Regional Development Fund (ERDF), which aims to strengthen economic and social cohesion by correcting imbalances between regions; and the the European Social Fund (ESF), which aims to help people improve their lives by learning new skills and finding better jobs. The funding is allocated on a six year basis from Brussels, and 2014 to 2020 funds for Scotland are worth €476 million and €465 million respectively.
Priorities for the funds include tackling poverty and inequality, building a low-carbon Scotland and increasing digital connectivity.
Maggie Lennon, director of the Bridges Programmes, said she is concerned that a replacement managed by Westminster would not prioritise the needs of communities in Scotland. The Glasgow charity – which has received grants from the European Social Fund - supports the social, educational and economic integration of refugees, asylum seekers, migrants, and those with English as a second language, working in partnership with similar European organisations.
Lennon said: “Given the recent power grab from Wales, the lack of a cohesive plan for Northern Ireland, the issue of the hard border and the ongoing court case over the Scottish Parliament's rejection of the Withdrawal Bill, I have no confidence whatsoever in the government's statement that it will respect the devolved administrations. Their recent actions tell a different story.
“Scotland should not merely be consulted on this new fund - Scotland should be managing it. Scotland will get a smaller share, is not a priority for Westminster, and jobs and services for some of our most vulnerable people and regions will be at risk.
“For the part of the UK that voted most strongly to remain in the EU, once again we are getting a very bad deal out of Brexit.”
Anna Fowlie, chief executive of the Scottish Council for Voluntary Organisations (SCVO), highlighted the importance of the funding stream to Scotland’s third sector.
She said: “Changes to EU Structural Funds directly affect the third sector in Scotland and SCVO has been consistent in our position that powers returning to the UK from the EU should be devolved so that Scotland’s needs can be considered and reflected in decision-making.
“The UK Parliament has promised engagement with devolved administrations on these matters before but their track record suggests that they are more interested in England’s priorities and not at all concerned with those of Northern Ireland, Scotland and Wales.”
When contacted by TFN, the Scottish Government said it would stand against any attempts by Westminster to seize control of structural funding.
A spokesman said: “We continue to be deeply concerned about the lack of detail regarding successor arrangements for EU funding, including on the Shared Prosperity Fund – but any attempt by the UK government to maintain control of the powers relating to devolved areas after the UK leaves the EU would be completely unacceptable.
“It is crucial that powers must be repatriated to the Scottish Parliament alongside a sustainable funding package to ensure the Scottish Government can protect the interests of the Scottish people and economy.”
In his statement, Brokenshire said that a consultation on the UKSPF will take place this year, and said the government will underwrite the UK’s allocation for existing projects until 2020 in the event of a no deal Brexit.
