Welsh and Scottish governments in new call for funding clarity

THE Scottish and Welsh governments have called for more clarity to be issued over funding after Britain leaves the European Union.

Representatives from both devolved administrations are due to meet with Chief Secretary to the Treasury Liz Truss in Cardiff today.

Ahead of the meeting, Scottish Finance Secretary Derek Mackay and Welsh Finance Minister Rebecca Evans have asked for more clarity from the UK Government on how funding will affect future budgets and public sector pensions among other areas after Brexit.

Mr Mackay is hopeful Ms Truss will “take an even handed approach in meeting all costs” ahead of March 29.

He said: “Funding from the EU supports jobs in Scotland, from major infrastructure projects to sustaining rural communities and delivering research funding for our world-class universities.

“That is why the Scottish Government is determined to defend its hard-won fiscal responsibility and maintain the benefits that EU funding has provided to many sectors and individuals in Scotland.

“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.

“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.

“As the Scottish Government Chief Economist’s State of the Economy report set out, Brexit uncertainty is already impacting key economic indicators and a no-deal Brexit would lead to a major dislocation to the Scottish economy.

“The UK Government must immediately rule out the possibility of a ‘no deal’ Brexit and extend the Article 50 process. However, as a responsible government we will also continue - and indeed intensify - our work to prepare for all outcomes as best we can.”

Speaking ahead of today’s meeting, Ms Evans said she will be “pushing for ongoing and meaningful dialogue... about the challenges we are facing”.

She said: “With the clock ticking as we approach EU exit day, it is absolutely vital we are 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.”