Replacement plans announced for European Structural Funds

Plans for a Scottish replacement for European Structural Funds after EU exit have been published.

The new Scottish Shared Prosperity Fund (SSPF) will ensure Scotland’s distinctive needs and priorities are met, with a key focus on addressing and reducing economic and social disparity.

Regional partners will play a key role in the SSPF – leading on allocation of funding and programme development for their area.

Trade Minister Ivan McKee said he expects the UK Government to transfer full control over replacement funding to the Scottish Government.

Mr McKee said:

“EU Structural Funds have been key to Scotland’s economic development over the past 40 years, investing more than £5.6 billion into a wide range of projects. As the United Kingdom crashes out of the EU at the end of next month so Scotland will no longer have access to such funds.

“Since the UK Government announced its intention to establish a UK Shared Prosperity Fund (UKSPF) to replace these funds in 2018, it has failed to engage meaningfully with the devolved nations, providing no detail on how such a fund might work, how much funding will be available and what it will fund in future. Scottish Ministers and officials continue to try to engage with the UK Government to secure the information needed to plan for the future. However, the Scottish Government has also sought to develop a position on future funding priorities to ensure Scotland’s distinctive needs and priorities are met. 

“The proposals we are publishing today for a Scottish Shared Prosperity Fund have been produced following 12 months of consultation and with the support of an expert Steering Group. We will now go on to develop the Fund involving key partners, especially local authorities. And we will continue to press the UK Government for full replacement of all lost EU funds – Scotland must receive at least £1.283 billion for a replacement seven year programme for 2021 – 2027.

“We also expect full control over replacement funding to be given to Scotland. Ongoing attempts by the UK Government to undermine the devolution settlement in relation to powers and funding in this area will continue to be resisted vigorously.”

Background:

Scottish Shared Prosperity Fund

This paper has been produced following 12 months of extensive consultation with stakeholders around Scotland and with the support of an expert Steering Group, co-chaired by Professor David Bell of University of Stirling and Professor John Bachtler of University of Strathclyde.

The UK Government may announce details of the UK Shared Prosperity Fund as part of the forthcoming Comprehensive Spending Review.

Scottish Ministers will keep Parliament updated on progress of the SSPF.

Scottish Ministers and officials will continue to press the UK Government for full replacement of all lost EU Structural Funds.

The UK Government may announce details of the UK Shared Prosperity Fund as part of the forthcoming Comprehensive Spending Review.