EU payments pledge the least businesses expect, Derek Mackay says
An extended guarantee from the Chancellor over European Union (EU) payments post-Brexit has been dismissed as the "very least" communities and business could expect.
An extended guarantee from the Chancellor over European Union (EU) payments post-Brexit has been dismissed as the "very least" communities and business could expect.
Holyrood Finance Secretary Derek Mackay criticised Philip Hammond after he included the measure in a package of policies designed to shore up the UK's economy amid the "turbulence" of exiting the EU.
Speaking at the Conservative conference in Birmingham, the Chancellor offered a new guarantee to continue payments of any multi-year EU grants secured by British businesses and organisations before withdrawal, which will probably be in March 2019.
Mr Mackay said: "The Chancellor's statement today demonstrates in the starkest possible terms that there are absolutely no guarantees on European Union funding streams after leaving the EU.
"So, while the assurance that funding contracts for structural funds, fisheries and farming projects that are entered into before the UK leaves the EU will be paid in full is the very least our communities are entitled to expect, today's statement begs more questions than answers regarding longer-term funding."
He warned this "uncertainty" could have a "devastating impact on farmers, fishermen and communities across Scotland" who rely heavily on European funding.
The Finance Secretary added: "I am also disappointed that the UK Government has taken so long to come to this position, with months of indecision impacting the Scottish economy and putting significant investment and jobs at risk."
He said the Scottish Government would "continue to engage with the Treasury to get further clarity on funding", with Mr Mackay saying he would raise the issue personally when he meets Chief Secretary to the Treasury Greg Hands later in October.
The Scottish Government minister added: "We are clear, the best way to guarantee the jobs, investment, services and projects all over the country which depend on this funding beyond 2020 is by maintaining Scotland's relationship with the EU and our place in the single market."
He made the comments after the Treasury said the extended funding guarantee would apply to structural and investment money, including agri-environment schemes, so long as they provide ''strong'' value for money and are in line with domestic strategic priorities.
The commitment is intended to give hundreds of businesses and universities the confidence to continue bidding for competitive EU funds while the UK remains a member.
Mr Hammond said: "'I can offer some additional certainty to British businesses and other organisations bidding to receive EU funding while we're still a member.
''I've already guaranteed the funding for projects signed prior to this year's Autumn Statement.
''Today, I can go further. The Treasury will offer a guarantee to bidders whose projects meet UK priorities and value-for-money criteria, that if they secure multi-year EU funding before we exit we will guarantee those payments after Britain has left the EU.''